IPM adoption, cooperative membership and farm economic performance

2019 ◽  
Vol 11 (2) ◽  
pp. 218-236 ◽  
Author(s):  
Wanglin Ma ◽  
Awudu Abdulai

Purpose The purpose of this paper is to examine the impact of agricultural cooperative membership on farmers’ decisions to adopt integrated pest management (IPM) technology and to estimate the impact of IPM adoption on farm economic performance. Design/methodology/approach An endogenous switching probit model that addresses the sample selection bias issue arising from both observed and unobserved factors is used to estimate the survey data from a sample of 481 apple households in China. A treatment effects model is employed to estimate the impact of IPM adoption on apple yields, net returns and agricultural income. In order to address the potential endogeneity associated with off-farm work variable in estimating both cooperative membership choice specification and IPM adoption specifications, a control function approach is used. Findings The empirical results show that cooperative membership exerts a positive and significant impact on the adoption of IPM technology. In particular, farmers’ IPM adoption decision is significantly associated with household and farm-level characteristics (e.g. education, farm size and price knowledge). IPM adoption has a positive and statistically significant impact on apple yields, net returns and agricultural income. Practical implications The findings indicate that agricultural cooperatives can be a transmission route in the efforts to proliferate the adoption and diffusion of IPM technology, and increased IPM adoption tends to improve the economic performance of farm households. Originality/value Despite the widespread evidence of health and environmental benefits associated with IPM technology, the adoption rate of this technology remains significantly low. This paper provides a first attempt by investigating to what extent and how agricultural cooperative membership affects IPM adoption and how IPM adoption influences farm economic performance.

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Samuel Ahado ◽  
Jiří Hejkrlík ◽  
Anudari Enkhtur ◽  
Tserendavaa Tseren ◽  
Tomáš Ratinger

PurposeThe purpose of this paper is to examine the impact of agricultural cooperative membership on potato production and technical efficiency.Design/methodology/approachA combination of propensity score matching technique and sample selection stochastic frontier framework that addresses potential selection bias due to observable and unobservable attributes is used to estimate the effect of participation between cooperative members and non-members. Using a stochastic meta-frontier approach, the technical efficiency of farmers was estimated and compared.FindingsThe empirical results show that the effect of participation in agricultural cooperatives is associated with increased yield and technical efficiency. A comparison of group-specific frontiers indicates that cooperative members perform better than non-members. Cooperative membership decisions is significantly associated with household and farm characteristics (e.g. education, participation in off-farm work, total farmland, distance to market and geographic location).Practical implicationsThe findings of this study demonstrate that cooperative organisations can be an important tool to enhance the productivity and efficiency of smallholder farmers. Successful cooperative models together with training programs designed to enlighten farmers on the importance and tangible benefits of collective action should be used to enlarge participation in cooperative organisations. In addition, governments and development agencies should implement targeted investment and capacity building programs related to irrigation management, gender-sensitive awareness and development of the internal institutional mechanisms in cooperatives for the transfer of knowledge and mutual learning so that all members benefit from cooperatives.Originality/valueDespite the pervasive evidence of the impact of cooperatives on productivity and technical efficiency in the Asian region, this study is probably the first attempt in the crop sector in Mongolia. It provides a rigorous empirical analysis of the impact of agricultural cooperative membership on potato production and technical efficiency through a counterfactual design.


2020 ◽  
Vol 25 (50) ◽  
pp. 451-478
Author(s):  
Ahmed Bouteska ◽  
Boutheina Regaieg

Purpose The current study aims to investigate the impacts of two behavioral biases, namely, loss aversion and overconfidence on the performance of US companies. First, the impact of loss aversion on the economic performance of companies was assessed. Second, the impact of overconfidence on market performance was discussed. Design/methodology/approach This study used around 6,777 quarterly observations on the population of US-insured industrial and services companies over the 2006-2016 period. Ordinary least squares (OLS) regression in two panel data models were used to test the hypotheses formulated for the study. Findings It was documented that the loss-aversion bias negatively affects the economic performance of companies and this is achieved for both sectors. In contrast, the findings suggest that overconfidence positively affects market performance of industrial firms but negatively affects market performance in service firms. Further robust evidence was found that overconfidence bias seems to be dominant, and hence, investors may tend to be more overconfident rather than more loss-averse. Originality/value This research can be extended by focusing on the following question: What is the impact of the contradictory (positive and negative) effects of an investor's loss aversion and overconfidence on the US company performance in case of realization of a stock market crisis or stock market crash?


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wanglin Ma ◽  
Puneet Vatsa ◽  
Xiaoshi Zhou ◽  
Hongyun Zheng

PurposeThe purpose of this study is to explore the relationship between farmers' happiness and farm productivity, taking maize production in China as an example.Design/methodology/approachThe conditional mixed process model is employed to account for the endogeneity that inevitably arises in regression models studying happiness and estimate the 2015 China Household Finance Survey data.FindingsThe empirical results show that a higher level of farmers' happiness is associated with higher maize productivity. The marginal return in maize productivity changes unevenly with increments in farmers' self-reported happiness on a five-point Likert scale. Farmers' happiness is positively determined by their age, educational level, farm size, machinery ownership, access to agricultural subsidy and car ownership. Machinery ownership and access to credit are two important factors that improve maize productivity.Research limitations/implicationsThe finding suggests that promoting the subjective well-being of farmers is conducive to higher productivity and improved national food security. The results have implications for China and other developing countries aiming for sustainable agricultural development.Originality/valueFirm-level data show that workers' happiness improves productivity. However, it is still unclear whether farmworkers' happiness affects farm productivity. Thus, this study provides the first empirical analysis of the impact of farmworkers' happiness on farm productivity.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ömer Esen ◽  
Gamze Yıldız Seren

PurposeThis study aims to empirically examine the impact of gender-based inequalities in both education and employment on economic performance using the dataset of Turkey for the period 1975–2018.Design/methodology/approachThis study employs Johansen cointegration tests to analyze the existence of a long-term relation among variables. Furthermore, dynamic ordinary least squares (DOLS) and fully modified ordinary least squares (FMOLS) estimation methods are performed to determine the long-run coefficients.FindingsThe findings from the Johansen cointegration analysis confirm that there is a long-term cointegration relation between variables. Moreover, DOLS and FMOLS results reveal that improvements in gender equality in both education and employment have a strong and significant impact on real gross domestic product (GDP) per capita in the long term.Originality/valueThe authors expect that this study will make remarkable contributions to the future academic studies and policy implementation, as it examines the relation among the variables by including the school life expectancy from primary to tertiary based on the gender parity index (GPI), the gross enrollment ratio from primary to tertiary based on GPI and the ratio of female to male labor force participation (FMLFP) rate.


2020 ◽  
Vol 47 (10) ◽  
pp. 1243-1263
Author(s):  
Iqbal Irfany ◽  
Peter John McMahon ◽  
Jenny-Ann Toribio ◽  
Kim-Yen Phan-Thien ◽  
Muhamad Amin Rifai ◽  
...  

PurposeThe aim of this study was to evaluate determinants of four diversification practises by cocoa smallholders in West Sulawesi, Indonesia: (1) growing other crops, (2) keeping livestock, (3) off-farm work for wages (4) off-farm self-employment, and the impact of diversification on welfare of community members.Design/methodology/approachHousehold interviews (n = 116) conducted in two subdistricts (Anreapi and Mapilli) of Polewali-Mandar District, West Sulawesi, provided quantitative data on household characteristics, crop and livestock production, income sources, expenditure and credit access. Two villages per subdistrict were included in the study, each producing cocoa as the main crop but differing in their proximity to a market town. Logistic regression was applied to identify determinants of diversification by households. Multiple linear regression (MLR) models evaluated the impact of diversification practices and other explanatory variables on two proxies of welfare (or household wealth): per capita value of durable assets (household assets other than land or livestock) and per capita expenditure for each household.FindingsMean per capita cocoa production in the sample was low (51 kg dry beans/annum). The mean dependency ratio (proportion of household occupants age <18 and >64) was 35%, with an average of five occupants per household. Household heads were predominantly male (95%), averaging 46 yo and 7 years of formal education. Most households (72%) depended on loans, but only 24% accessed formal loans. Significant determinants of diversification practices were access to formal credit for self-employment and subdistrict for livestock, with Mapilli subdistrict households more likely to keep livestock. Household predictors in the MLR accounted for 28% variation of the dependent, per capita value of durable goods. Off-farm self-employment and raising livestock significantly improved welfare, but growing other crops or off-farm work for wages had little effect. Other household variables demonstrated to have significant positive effects on welfare were education of the household head, proximity to a market town and land area per household.Research limitations/implicationsThe study was restricted to a relatively small sample size (n = 116). Studies including panel data or larger numbers of households could enable the identification of further determinants of diversification.Practical implicationsThe study demonstrates that diversification has the potential to improve rural livelihoods, but that obstacles, especially formal credit access, may deter poorer households from diversifying their income sources.Social implicationsPrograms and policies that facilitate access to formal finance by smallholders could encourage diversification into small business and improve livelihoods in cocoa-dependent communities.Originality/valueIn the light of the decline in cocoa farm productivity in West Sulawesi, the study demonstrates the potential benefits, as well as limitations, of income diversification by smallholders.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Le Khuong Ninh

PurposeThis paper investigates the impact of education on output of rice farming households in Vietnam.Design/methodology/approachGiven the literature review, this paper specifies three empirical models (i.e. linear constant coefficient model, partially nonlinear model and linear varied coefficient model) with variables that well describe the mechanism through which education affects output. The data were collected from 901 rice farming households randomly selected out of ten provinces and city in the Mekong River Delta (MRD) of Vietnam. The models are estimated using ordinary least squares (OLS) and Robinson's (1988) double residual estimators.FindingsEstimates of the empirical models show that seed, fertilizer, labor and farm size have significant impacts on output of rice farming households while pesticide and herbicide do not. Education is also found to have a positive effect on output of rice farming households because it helps them better manage farms of larger size via combining various inputs in a more desirable way.Originality/valueThis paper confirms the positive impact of education on agricultural output, which implies that policies aiming to provide better education to rural people will greatly enhance their income as well as trigger long-term economic and agricultural growth.


2020 ◽  
Vol 47 (3) ◽  
pp. 479-507
Author(s):  
Surya Nepal ◽  
Sae Woon Park ◽  
Sunhae Lee

PurposeThe purpose of this paper is to empirically assess the impact of remittances on the economic performance of the 16 Asian developing countries, taking account of their institutional qualities.Design/methodology/approachA panel of 16 Asian developing countries (Central Asia, South Asia, and ASEAN) over the period of 2002–2016 is employed in the analysis. To assess the impact of remittances on economic performance in consideration of institutional quality, OLS estimates as well as GMM are used.FindingsThe effect of remittances on economic growth is statistically significant. In addition, they also impact economic growth when they interact with institutional or financial development variables. For the long-run growth process of Central Asian, South Asian, and ASEAN countries, a sound and smooth institutional framework appears to be indispensable. Also, it was found that more fragile economies tend to achieve bigger growth than less fragile economies, as this kind of growth is triggered by more remittances flowing into fragile economies. However, the impact of remittances on growth does not depend on the level of ICT. FDI and financial development have positive impact on growth.Research limitations/implicationsThere are limitations to this research as well. Due to the unavailability of data, several countries had to be removed from this study. The cost of sending money might be an important variable for this study. However, the data on this variable from reliable sources are almost impossible to gather. Therefore, this variable is also not included in this research. The savings from remittances when intermediated through formal financial channels will, in fact, produce a positive allocation and distribution of resources that may eventually become an important source of growth. However, one precondition for larger and greater growth is that remittances need to be well and properly utilized by the financial sector. Therefore, quality institutions should be formed first, which can facilitate investment activities and make the flow of remittances more convenient.Originality/valueThis paper exclusively considers the case of Asian developing countries (Central Asia, South Asia, and ASEAN) to assess the impact of remittances on the economic performance of these countries, with special consideration of the interaction effects of remittances and institutional quality in these emerging Asian economies. The previous studies on the effect of remittances on growth do not conform to one concrete conclusion. This study is undertaken in a bid to get the best possible result on the impact of remittances on the growth of the selected countries, majority of which attract substantial chunk of remittances into their economies.


2018 ◽  
Vol 118 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Jing Wang ◽  
Jun Dai

Purpose The purpose of this paper is to contribute significantly to the empirical investigations related to the impact of sustainable supply chain management (SSCM) practices on performance in Chinese firms. The paper also aims to theorize and empirically assess a comprehensive SSCM practices and performance model. The model incorporates two aspects of SSCM practices: internal and external management, and analyses the impact on corporate sustainability performance from all dimensions. Design/methodology/approach This paper develops a conceptual model to investigate the impact of SSCM practices on the firm performance. Based on the data of 172 Chinese firms, this paper analyzes the impact of SSCM practices on firm economic performance, environmental performance, and social performance for each dimension by using PLS structural equation methods. Findings The results show that firm’s internal SSCM practices have a positive impact on firm’s environmental performance and social performance. Moreover, environmental performance and social performance are positively related to economic performance. Originality/value A comprehensive SSCM practices performance model is proposed and empirically assessed for Chinese firms. The results of this investigation support the hypotheses that SSCM practices are environmentally and socially necessary and are favorable for business. A series of approach and implications of SSCM practices is recommended.


2018 ◽  
Vol 41 (11) ◽  
pp. 1309-1335 ◽  
Author(s):  
Benjamin Yeo

PurposeThis study aims to use university patent and regional economic data to investigate the current and future impact of university innovation, measured using multiple variables, on real economic productivity.Design/methodology/approachUsing university patent and regional economic data, regression models are built to determine the impact of university innovation on current and future regional economic performance.FindingsThe findings demonstrate that university innovation generates sustained impact on economic performance, but by itself, is insufficient in driving economic performance; and different measures of university innovation have different degrees of impact. University innovation makes up a small, albeit significant, proportion of the drivers of economic performance.Research limitations/implicationsThere are four implications. First, developing countries can leverage university–industry collaborations for economic growth. Second, innovation management must encourage continuous university innovation for sustainable economic productivity. Third, Science, Technology, Engineering and Mathematics (STEM) and non-STEM innovation warrant attention. Fourth, successful innovation policies should be tailored to their unique societal contexts.Originality/valueAlthough innovation is a driver of economic performance, there is a lack of studies that focus specifically on universities, operationalize performance using gross domestic product measures and take into account impact lags by exploring universities’ current and future impacts.


2018 ◽  
Vol 29 (4) ◽  
pp. 740-758 ◽  
Author(s):  
Waqar Ahmed ◽  
Waqar Ahmed ◽  
Arsalan Najmi

PurposeThe concept of green supply chain management (GSCM) is gaining popularity in developing countries due to the environmental and economic impact along with increasing awareness of environmental safety. Enterprises are trying to express their sincere commitment toward green practices. The purpose of this paper is to examine the impact of GSCM on green and economic performance of the firm under the influence of leadership and institutional pressures.Design/methodology/approachConceptual model was developed from previous research works to understand the driving forces of green and economic performance which had inconsistent findings in the literature. Data were collected from 174 leading ISO 14001 certified manufacturing firms in Pakistan by using a structured questionnaire. Partial least squares-structural equation modeling is used for testing the hypotheses.FindingsThe statistical results indicate that the leadership and institutional pressures influence the firm for adoption of internal green practices and external green collaboration. The statistical results also suggest that green practices significantly improve firm’s green and economic performance. However, firm’s external green collaboration does not significantly affect green performance, but it improves green performance significantly.Research limitations/implicationsThis research is conducted on Pakistan as a case of highly populated developing country.Originality/valueThis research presents the empirical evaluation of the influence of leadership and institutional pressure on green practices and improved green and economic performance. The results offer useful understanding for SCM practitioners seeking to adopt GSCM practices. The results also provide policy insights for regulators, organizations and legislators to further promote GSCM.


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