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Can a social safety net affect farmers crop portfolios? A study of the productive safety net programme in Ethiopia.
Umeå University, Faculty of Social Sciences, Department of Economics.
2010 (English)Report (Other academic)
Abstract [en]

In this paper, we examine whether a minimum level of ensured consumption from a social safety net has the potential of breaking the vicious circle of risk avoidance and low return in African agriculture. We study how the implementation of a social safety net programme in Ethiopia has affected the value, risk and composition of farmers’ crop portfolios. The effects of programme participation on the value and risk of the crop portfolio are examined in a Just-Pope production function, and the effects of programme participation on composition of the crop portfolio are tested in a set of acreage response models. The empirical analysis is based on unique household panel data that allow us to control for unobserved heterogeneity. No significant effect on the value and risk of the crop portfolio could be found. However, the programme seems to have brought about some changes in the land allocated to different crops. The greatest effect is towards increased cultivation of perennials, which are high-value, high-risk crops in this part of Ethiopia.

Place, publisher, year, edition, pages
Umeå: Umeå universitet, Institutionen för Nationalekonomi , 2010. no 807, 50 p.1-50 p.
Series
Umeå economic studies, ISSN 0348-1018 ; 807
Keyword [en]
Crop choice, Social safety nets, Food-for-work programmes, PSNP, Ethiopia
National Category
Economics
Research subject
Economics
Identifiers
URN: urn:nbn:se:umu:diva-33862OAI: oai:DiVA.org:umu-33862DiVA: diva2:318406
Available from: 2010-05-10 Created: 2010-05-07 Last updated: 2012-02-23Bibliographically approved
In thesis
1. Changing the risk at the margin: Smallholder farming and public policy in developing countries
Open this publication in new window or tab >>Changing the risk at the margin: Smallholder farming and public policy in developing countries
2010 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis consists of a summary and four self-contained papers.

Paper [I] examines whether the implementation of a social safety net programme in Ethiopia has affected the value, risk and composition of farmers‟ crop portfolios. The empirical analysis suggests that the value and risk of the crop portfolio have not been altered due to the programme. However, the programme seems to have brought about some changes in the land allocated to different crops.

Paper [II] studies how a social safety net affects farmers‟ (dis)investments in productive assets. More specifically, it studies how the Productive Safety Net Programme in Ethiopia has changed livestock and tree holdings. The results indicate no significant effect on livestock holdings, but a significant increase in tree holdings.

Paper [III] investigates if there is a problem of adverse selection in formal microlending in rural Bangladesh. The results indicate that farmers who only borrow formally have a shadow price of capital that is substantially higher than the average informal interest rate. This suggests that farmers that only borrow formally are perceived as poor credit risks by informal lenders.

Paper [IV] explores the economic incentives surrounding the cultivation of opium poppy in Afghanistan. Specifically, it examines the impact of eradication policies when opium is used as a means of obtaining credit, and when the crops are produced in sharecropping arrangements. The results indicate that both these features are likely to affect the outcome of eradication policies.

Place, publisher, year, edition, pages
Umeå: Nationalekonomi, Umeå universitet, 2010. 25 p.
Series
Umeå economic studies, ISSN 0348-1018 ; 810
Keyword
Smallholder farming, Public policy, Informal risk strategies, Microcredit, Opium eradication, Development economics, Food policy
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:umu:diva-33854 (URN)978-91-7459-022-7 (ISBN)
Public defence
2010-06-04, Samhällsvetarhuset sal s305, Umeå universitet, Umeå, 10:15 (English)
Opponent
Supervisors
Available from: 2010-05-14 Created: 2010-05-07 Last updated: 2012-02-23Bibliographically approved

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Andersson, Camilla

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CiteExportLink to record
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Citation style
  • apa
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  • Other locale
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Output format
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