Non-Traditional Crops, Traditional Constraints: Long-Term Welfare Impacts of Export Crop Adoption Among Guatemalan Smallholders

27 Pages Posted: 20 Apr 2016

See all articles by Calogero Carletto

Calogero Carletto

World Bank; World Bank - Development Research Group (DECRG)

Talip Kilic

World Bank - Development Data Group (DECDG)

Angeli Kirk

World Bank

Date Written: November 1, 2009

Abstract

This study documents the long-term welfare effects of household non-traditional agricultural export (NTX) adoption. The analysis uses a unique panel dataset, which spans the period 1985-2005, and employs difference-in-differences estimation to investigate the long-term impact of non-traditional agricultural export adoption on changes in household consumption status and asset position in the Central Highlands of Guatemala. Given the heterogeneity in adoption patterns, the analysis differentiates the impact estimates based on a classification of households that takes into account the timing and duration of non-traditional agricultural export adoption. The results show that while, on average, welfare levels have improved for all households irrespective of adoption status and duration, the extent of improvement has varied across groups. Long-term adopters exhibit the smallest increase in the lapse of two decades, in spite of some early gains. Conversely, early adopters who withdrew from non-traditional agricultural export production after reaping the benefits of the boom period of the 1980s are found to have fared better and shown greater improvements in durable asset position and housing conditions than any other category.

Keywords: Economic Theory & Research, Rural Development Knowledge & Information Systems, Regional Economic Development, Crops & Crop Management Systems, Rural Poverty Reduction

Suggested Citation

Carletto, Calogero and Kilic, Talip and Kirk, Angeli, Non-Traditional Crops, Traditional Constraints: Long-Term Welfare Impacts of Export Crop Adoption Among Guatemalan Smallholders (November 1, 2009). World Bank Policy Research Working Paper No. 5142, Available at SSRN: https://ssrn.com/abstract=1517014

Calogero Carletto (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Talip Kilic

World Bank - Development Data Group (DECDG) ( email )

Via Labicana 110
Rome, Lazio 00184
Italy

Angeli Kirk

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

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