Household shocks and coping mechanisms in Camiguin Province, Philippines

Island’s vulnerability is anchored towards stewardship to accommodate environmental conservation and economic activity. Vulnerability poses risk and uncertainty of island households. Household as an important entity plays a role for island development. This study aimed to identify the profile of rural households, evaluate the shocks as well as coping mechanisms employed by the rural households. Stratified random sampling was undertaken to identify the 377 randomly selected samples from the municipalities of Catarman and Sagay in the province of Camiguin, Philippines. The survey was conducted from February to March 2019. Household’s data collected includes age of the respondent, sex of the respondent, household size, household income in range, educational attainment of respondent, farm size, and tenurial status. Respondents were asked to rank the shocks and risks encountered as well as the coping mechanisms. Data collected were analysed using descriptive statistics. Results revealed that post-harvest losses played a significant role in agricultural shocks while could not buy food due to food price increase as economic shocks. Selling of livestock, land and other assets got the highest rank for mechanisms to cope up with shocks. Improved storage facilities and efficient transport system can be taken into consideration to improve the quality of agricultural products to be marketed inside and outside the island to minimize post-harvest losses.

Smallholder Farmer Engagement in Citizen Science for Varietal Diversification Enhances Adaptive Capacity and Productivity in Bihar, India

There is evidence that in many situations the use of a diverse set of two or more crop varieties in the field has benefits for production. The benefits of varietal diversification include lower crop disease incidence, higher productivity, and lower yield variability. Targeted interventions could increase varietal diversity where smallholder farmers lack the knowledge and access to seeds needed to diversify their varieties. Innovations based on crowdsourced citizen science make it possible to involve a large number of households in farmer participatory varietal selection. This study analyses varietal diversification in Bihar, India, focusing on the effects of the largest citizen science-based intervention to date, involving 25,000 farmers and 47,000 plots * seasons. The study examines if an increase in the varietal diversity of major staple crops, namely wheat and rice, under real farming conditions contributed to: (1) crop productivity and (2) the ability of households to recover from agricultural production shocks. We used the Rural Household Multi-Indicator Survey (RHoMIS) as a survey tool for rapid characterization of households and the sustainable rural livelihoods framework to understand the potential multiple interactions that are activated within the system by the intervention. We found that an increase in varietal diversification produced livelihood benefits in terms of crop productivity and the ability of households to recover from the occurrence agricultural shocks. Finally, outcomes highlight the effectiveness of development programmes aimed at strengthening rural livelihoods through participatory approaches and use of local crop varietal diversity.

Contemporary Issues in Business and Economics in Vietnam and Other Asian Emerging Markets

This Special Issue publishes high quality papers on contemporary issues in business and economics in Vietnam and other Asian emerging markets. These papers were accepted and presented at the 2019 Vietnam’s Business and Economics Research Conference (VBER2019) organized by Ho Chi Minh City Open University, Vietnam in July 2019. Emerging issues in business and economics from Vietnam and other emerging markets in the Asian region have been addressed from various angles, from economics, finance, and statistics to management science. Five out of the 14 studies in this book were conducted to investigate various issues in relation to the Asian region such as the exchange rate regime in Asia, financial inclusion, and financial development and income inequality in Asian emerging markets. Seven studies were conducted in response to emerging business and economic issues in Vietnam such as fiscal decentralization, urbanization, foreign direct investment, and corporate financial distress. Other papers even considered various relevant aspects from the United States and Europe to the Asian region including double taxation treaties and agricultural shocks to the oil price. The findings from these papers are useful for practitioners, policymakers, and academics.

Long-Run Impacts of Agricultural Shocks on Educational Attainment: Evidence from the Boll Weevil

The boll weevil spread across the South from 1892 to 1922 with devastating effect on cotton cultivation. The resulting shift away from this child labor–intensive crop lowered the opportunity cost of school attendance. We investigate the insect’s long-run effect on educational attainment using a sample of adults from the 1940 census linked back to their childhood census records. Both white and black children who were young (ages 4 to 9) when the weevil arrived saw increased educational attainment by 0.24 to 0.36 years. Our results demonstrate the potential for conflict between child labor in agriculture and educational attainment.

Modeling the Impact of Agricultural Shocks on Oil Price in the US: A New Approach

The current literature has generally considered prices of the agricultural commodity as an endogenous factor to crude oil price. As such, the role of the agricultural market in the energy sector has been largely ignored. We argue that the expansion of agricultural production may trigger a significant increase in oil price. In addition, the world has recently witnessed a growth in biofuel production, leading to an increase in the size of the agricultural sector. This study is conducted to examine the impact of different agricultural shocks on the oil and agricultural markets in the US for the period from 1986 to 2018. The study utilizes the Structural Vector Autoregressive (SVAR) model to estimate the relationship between the agricultural market and the crude oil market. Moreover, the variance decomposition is also used to quantify the contribution of agricultural demand shocks on oil price variations. Findings from this paper indicate that different agricultural shocks can have different effects on oil price and that corn use in ethanol plays an important role in the impact of corn demand shocks on oil price. We find evidence that the agricultural market can have an impact on oil prices through two main channels: indirect cost push effect and direct biofuel effect. Of these, the biofuel channel unexpectedly suggests that the expansion of bioethanol may in fact foster the dependency of the economy on fossil fuel use and prices.

An Employment Guarantee as Risk Insurance? Assessing the Effects of the NREGS on Agricultural Production Decisions

Uninsured risk constrains households in their production decisions in many developing countries. Similarly to crop insurance, employment guarantees can support farmers in managing agricultural production risks. Evidence from representative panel data of Andhra Pradesh, India, suggests that the National Rural Employment Guarantee Scheme (NREGS) reduces households’ uncertainty about future income streams because it provides employment opportunities in rural areas independently of weather shocks and crop failure. Therewith the NREGS makes an ex-post labor supply response to agricultural shocks more efficient. Households with access to the NREGS are found to shift their production toward riskier but also more profitable crops. The observed shifts in agricultural production do considerably raise the profitability of agricultural production and hence the incomes of smallholder farmers. The findings are not driven by changes in the labor or cost intensity of those crops, which supports the idea that the causal mechanism underlying the observed changes is indeed an insurance effect.