This paper shows that the current generation of transgenic crop varieties has significant potential to improve economic welfare in low-income countries. These varieties might increase crop yields in low-income countries in cases when pesticides have not been used. They will reduce negative health effects of chemicals when they replace them. With low transaction costs, appropriate infrastructure, and access to intellectual property, multiple varieties of transgenics will be introduced.
It is often assumed that voluntary sustainability standards – such as Fairtrade – could not only improve the socioeconomic wellbeing of smallholder farmers in developing countries but could also help to reduce negative health and environmental impacts of agricultural production. The empirical evidence is thin, as most previous studies on the impact of sustainability standards only focused on economic indicators, such as prices, yields, and incomes.
Despite substantial research on the economic effects of transgenic insect-resistant Bacillus thuringiensis (Bt) cotton, there is still limited work on this technology’s impacts on human health. Due to the inbuilt insect resistance, Bt cotton requires fewer pesticide sprays than conventional cotton, which is not only advantageous from economic and environmental perspectives, but may also result in health benefits for farmers.
It is now widely acknowledged that biotechnology will have significant implications for development. While biotechnology’s potential for low income economies is still the subject of controversy, this paper argues that it is precisely in these countries that food and agriculture related biotechnology could efficiently contribute to the achievement of development objectives. To date, however, biotechnological advances have been realized predominantly in industrialized countries.
Most micro-level studies on the impact of agricultural technologies build on cross-section data, which can lead to unreliable impact estimates. Here, we use panel data covering two time periods to estimate the impact of tissue culture (TC) banana technology in the Kenyan small farm sector. TC banana is an interesting case, because previous impact studies showed mixed results. We combine propensity score matching with a difference-in-difference estimator to control for selection bias and account for temporal impact variability.
Weak public infrastructure may contribute to poverty and inequality. Studies have found that roads are a key factor affecting rural incomes in developing countries. Yet, there is relatively scant evidence of the economic impacts of rural roads at the individual household level. This study contributes to the literature by empirically analysing the effects of rural road construction on household income and income inequality in Nepal.
In the existing literature, the effects of contract farming on household welfare were examined with mixed results. Most studies looked at single contract types. This paper contributes to the literature by comparing two types of contracts – simple marketing contracts and resource- providing contracts – in the Ghanaian oil palm sector. We investigate the effects of both contracts on farm income, as well as spillovers on other household income sources. We use survey data collected with an innovative sampling design and a control function approach to address possible issues of endogeneity.
Labor saving innovations are essential to increase agricultural productivity, but they might also increase inequality through displacing labor. Empirical evidence on such labor displacements is limited. This study uses representative data at local and national scales to analyze labor market effects of the expansion of oil palm among smallholder farmers in Indonesia. Oil palm is labor-saving in the sense that it requires much less labor per unit of land than alternative crops.
Productivity growth in smallholder agriculture is an important driver of rural economic development and poverty reduction. However, smallholder farmers often have limited access to information, which can be a serious constraint for increasing productivity. One potential mechanism to reduce information constraints is the public agricultural extension service, but its effectiveness has often been low in the past.
The 2021 Global Report on Food Crises (GRFC 2021) highlights the remarkably high severity and numbers of people in Crisis or worse (IPC/CH Phase 3 or above) or equivalent in 55 countries/territories, driven by persistent conflict, pre-existing and COVID-19-related economic shocks, and weather extremes. The number identified in the 2021 edition is the highest in the report’s five-year existence. The report is produced by the Global Network against Food Crises (which includes WFP), an international alliance working to address the root causes of extreme hunger.