Signalling Change: Micro Insights on the Pathways to Agricultural Transformation

IFPRI Discussion Paper 1803

Posted: 20 Feb 2019

See all articles by Priyanka Parvathi

Priyanka Parvathi

University of Hanover

Mulubrhan Amare

International Food Policy Research Institute (IFPRI)

Trung Thanh Nguyen

Leibniz Universität Hannover

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management

Date Written: January 31, 2019

Abstract

Most studies of agricultural transformation document the impact of agricultural productivity on macroeconomic indicators of development. Much less is known about the micro-scale changes within the farming sector that signal a transformation precipitated by exogenous agricultural productivity growth. This study identifies early trends in the agricultural sector that indicate an onset of structural change. We also comparatively analyse the patterns of micro-level changes between Sub-Saharan African (SSA) farmers and rural smallholders in Southeast Asia (SEA). We use panel data from the Living Standard Measurement Study – Integrated Survey on Agriculture (LSMS-ISA) on Uganda and Malawi and from the Thailand Vietnam Socio-economic panel (TVSEP). We apply a fixed effects instrumental variable regression to identify the exogenous component of the agricultural productivity shock. Results indicate that exogenous increases in lagged agricultural income improve average village off-farm income and trigger a change in cultivation patterns within the agrarian sector in both SEA and SSA. However, we find that the patterns of transformation are not uniform across countries.

Keywords: Africa South of Sahara, Africa, Southeast Asia, Asia, Smallholders, Agricultural Development, Agricultural Sector, Microeconomic Analysis, Non-Farm Income, Livestock Production, Farm Size, Agricultural Mechanization, Structural Change, Agricultural Tr

Suggested Citation

Parvathi, Priyanka and Amare, Mulubrhan and Nguyen, Trung Thanh and Barrett, Christopher B., Signalling Change: Micro Insights on the Pathways to Agricultural Transformation (January 31, 2019). IFPRI Discussion Paper 1803, Available at SSRN: https://ssrn.com/abstract=3330226

Priyanka Parvathi (Contact Author)

University of Hanover ( email )

Germany

Mulubrhan Amare

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Trung Thanh Nguyen

Leibniz Universität Hannover ( email )

Welfengarten 1
D-30167 Hannover, 30167
Germany

Christopher B. Barrett

Cornell University - Charles H. Dyson School of Applied Economics & Management ( email )

315 Warren Hall
Ithaca, NY 14853-7801
United States
607-255-4489 (Phone)
607-255-9984 (Fax)

HOME PAGE: http://aem.cornell.edu/faculty_sites/cbb2/

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