The use of mobile phones has increased rapidly in many developing countries, including in rural areas. Besides reducing the costs of communication and improving access to information, mobile phones are an enabling technology for other innovations. One important example are mobile phone based money transfers, which could be very relevant for the rural poor, who are often underserved by the formal banking system. We analyze impacts of mobile money technology on the welfare of smallholder farm households in Kenya.
Natural resource management practices, such as the System of Rice Intensification (SRI), have been proposed to tackle agricultural challenges such as decreasing productivity growth and environmental degradation. Yet, the benefits of system technologies for farmers are often debated. Impacts seem to be context-specific, which is especially relevant in the small farm sector with its large degree of agroecological and socioeconomic heterogeneity. This was not always considered in previous research.
The recent proliferation of mobile phones in rural Africa has also led to increased interest in mobile financial services (MFS), such as mobile money and mobile banking. Such services are often portrayed as promising tools to improve agricultural finance, especially among smallholders who are typically underserved by traditional banks. However, empirical evidence on the actual use of MFS for agricultural activities is thin. Here, we use nationally representative data from Kenya to analyze the use of mobile payments, mobile savings, and mobile credit among the farming population.
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.
In Sub-Sahara Africa, adoption rates of improved crop varieties remain relatively low, which is partly due to farmers’ limited access to information. In smallholder settings, information often spreads through informal networks. Better understanding of such networks could potentially help to spur innovation and farmers’ exposure to new technologies. This study uses survey data from Tanzania to analyze social networks and their role for the spread of information about improved varieties of maize and sorghum.
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.
While several studies have shown that genetically modified Bt cotton can benefit smallholder farmers economically, the sustainability of these effects is still unclear and debated controversially between biotechnology proponents and critics. We use unique panel data of 533 cotton farmers, collected in India between 2002 and 2008, to analyze Bt impacts on cotton yield, profit, and household living standards. Results from fixed effects models show that the adoption of Bt cotton is associated with a net yield gain of 24% and a profit increase of 50%.
Written employment contracts may improve the conditions of agricultural workers in developing countries, but farmers as employers often prefer less formal oral arrangements. We evaluate whether farmers’ preferences, which are deeply rooted in traditional norms, can be influenced through a group awareness campaign. In a randomised experiment in Côte d’Ivoire, we show that such a campaign increases farmers’ preferences for written contracts and for contract features involving social benefits for workers.
Smallholder farmers in developing countries often suffer from high risk and limited market access. Contract farming may improve the situation under certain conditions. Several studies analyzed effects of contracts on smallholder productivity and income with mixed results. Most existing studies focused on one particular contract scheme. Contract characteristics rarely differ within one scheme, so little is known about how different contract characteristics may influence the benefits for smallholders.