Agricultural Economics
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- PublicationTea Prices and Household Consumption Patterns in Tanzania(African Economic Research Consortium, 2024-04-10) Nchake, Mamello A.; Mtenga, Threza L.Tea production is a significant contributor to Tanzania’s output and income. The country is a price taker in regional and international tea markets. This makes it vulnerable to price shocks, which can have a detrimental impact on smallholder farmers, especially those who heavily rely on tea production for their income. This vulnerability is particularly critical for net producers who lack alternative income sources, especially in rural areas. The study uses a panel dataset from the Tanzania National Panel Survey (TNPS), collected over the periods 2008-2009, 2010-2011 and 2012-2013. The study’s main findings indicate that tea price shocks have a strong negative effect on consumption patterns of smallholder farming households in Tanzania. The results also highlight that the impact of price shocks is not uniform across all households. It varies based on factors such as the gender of the household head and the location (rural or urban). The study underscores the importance of government intervention to support households affected by price shocks. Safety net programmes and welfare management initiatives can be vital in assisting these households to cope with economic uncertainties. Moreover, policies that encourage savings and the accumulation of productive assets can serve as a cushion against future shocks. Recognizing the variations in the effects of price volatility among different households, the study suggests the need for policies and strategies that are specifically designed to address the uncertainties in the tea market. This implies a nuanced approach to policies that address the diverse needs and vulnerabilities of tea-producing households. Keywords: Prices, consumption, Tanzania, Tea
- PublicationThe Impact of Agricultural Productivity on Deforestation in Central Africa(African Economic Research Consortium, 2023-09-21) Bakehe, Novice PatrickThis paper examines the effect of agricultural productivity on the environment, using deforestation as an example. We examined this relationship using a sample of nine countries in Central Africa, with data from the 1990s to 2020. The econometrics results show that an increase in agricultural productivity reduced the rate of deforestation in these countries. This suggests that policies that facilitate the adoption of modern inputs and investment in technology leading to an increase in yields from agriculture could lead to a reduction in the demand for agricultural land.
- PublicationThe Impact of Irrigated Agriculture on Child Nutrition Outcomes in Southern Ghana(African Economic Research Consortium, 2023-09-21) Okyere, Charles Y.; Usman, Muhammed A.Data from Agriculture-Water and Sanitation (AG-WATSAN) Nexus Project undertaken by the Center for Development Research (ZEF), University of Bonn, Germany, with funding from the Bill and Melinda Gates Foundation and from Dr. Hermann Eiselen Doctoral Programme of the Fiat Panis Foundation, are duly acknowledged. Financial assistance (Research Grant Number: RT20520) from the African Economic Research Consortium (AERC), Nairobi, Kenya, for writing this manuscript, is gratefully acknowledged. Comments from Dr. Abebe Shimeles (resource person) and conference participants of the 50th, 54th and 55th AERC Biannual Research Workshops greatly improved the content of this paper. The usual disclaimer applies in terms of attribution of research findings to the funding institutions. Finally, an earlier version of the report was published in the Water Resources and Economics journal.
- PublicationThe Impact of Agricultural Public Expenditure on Agricultural Productivity in Nigeria(2023-06) Alabi, Reuben AdeoluThis study analyzes the impact of agricultural public expenditure on agricultural productivity in Nigeria. The relevant time series data for the study were obtained from secondary sources. The data ranged from 1981 to 2014. An instrumental variable two-stage least squares (IV-2SLS) econometric model was employed to investigate the endogeneity of public agricultural expenditure, and the autoregressive distributed lag (ARDL) econometric technique was used to determine the long and short-term effects of public agricultural expenditure on agricultural productivity. The study shows that 20% of agricultural public budgets were not implemented in Nigeria. On average, agricultural public capital expenditure comprised 55% of total agricultural public expenditure in Nigeria, which is lower than the recommended 60% for effective agricultural sector performance. The study also reveals that while public agricultural capital expenditure and agricultural public total expenditure are strong determinants of agricultural productivity, agricultural public recurrent expenditure maintains a weak relationship with agricultural productivity in Nigeria. Finally, the study demonstrates that agricultural public spending on irrigation has the highest impact on agricultural productivity, while agricultural public spending on subsidies has the least impact on agricultural productivity. Among other recommendations, it is suggested that the agricultural public expenditure pattern should be realigned to favour investments in irrigation, research and development, and rural development, which currently attract lower budgetary allocations in Nigerian agricultural budgets.
- PublicationVarietal turn-over and their effect on yield and food security – Evidence from 20 years of household surveys in Kenya(African Economic Research Consortium, 2023) Groote, Hugo De; Omondi, Lumumba BrianAgricultural technology is key to food security in SSA, but new maize varieties are not able to replace the old, trusted ones. This study uses data from four representative household surveys conducted in Kenya over 21 years, to show that younger maize varieties have a clear, although limited, effect on yield (4 kg/ha/year controlling for fertilizer) and food security. Unfortunately, this is not sufficient to entice farmers to adopt them, and adoption rates have barely increased despite the market liberalization that brought many private seed companies and their varieties in the market, as the parastatal Kenya Seed Company continues to dominate the market. As a result, in combination with low fertilizer use, yields have stagnated for the last three decennia.