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Welfare effect of rice outgrower scheme participation: empirical evidence from northern Ghana

Outgrower schemes can improve farmers’ welfare by boosting farm productivity and increasing market participation. In this context, we examined the effect of participating in outgrower schemes on household welfare indicators while controlling for potential observed and unobserved biases that could influence the outcomes. To address this objective, we employed an endogenous switching regression model to analyze primary data from 555 rice farmers in northern Ghana who use irrigation. The results revealed significant effect of sex of household’s head, age, marital status, education, dependency ratio, non-farm work, extension contact, access to credit, membership of farmer group, proximity to commercial markets, distance to outgrower schemes, familiarity with scheme operations, and the geographical location of the farmer on the propensity to participate in outgrower schemes. Importantly, participation in outgrower schemes resulted in a 57.6%, 23.6%, and 48.1% increase in household consumption expenditure per capita, income per capita, and asset ownership, respectively, exceeding what participants could have gained if they had not participated. Similarly, the non-participants, would have experienced a 21.2%, 34.0%, and 26.1% increase in household consumption expenditure per capita, income per capita, and assets, respectively, if they had joined the scheme Therefore, strategies to improve farmer groups and extension services are required as they are critical channels for encouraging more farmers to participate in the schemes and thereby improving their welfare.

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The political economy of natural resource conflicts in Ghana: The case of the Songor

In contrast to studies that assume that self-interest is the primary factor motivating African leaders in natural resource conflicts, we argue that successive Ghanaian governments have intervened in these conflicts by attempting to balance the imperatives of national development, neoliberal reforms, and regime survival. This argument is based on an analysis of the struggles over access to the Songor – a salt-yielding lagoon in southeastern Ghana – as an outcome of the social contradiction engendered by the pursuit of high modernist development aspirations within a framework of neoliberal austerity. In Ghana, successive governments have deployed the coercive apparatus of the state on behalf of private investors in their struggles with community members over access to the Songor. Drawing on interviews, focus group discussions, policy documents and media reports, we argue that the fate of the communities around the Songor illustrates the infringement on economic and cultural rights of local communities when such rights clash with the developmental aspirations of national elites. The resulting economic and social dislocations experienced by the affected communities have been implicitly accepted by the government as the necessary price to pay for development of the salt industry in Ghana. The Songor case also illustrates a fundamental paradox of neoliberal development where the state is expected to abandon its economic role, but the private sector is incapable of filling the gap without substantial material support from the state.

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Is seed aid distribution still justified in South Sudan?

Seed aid—or free distribution of seeds to farmers—is a popular intervention to simultaneously reduce food insecurity and dependency on food aid in fragile countries. However, seed aid distribution also has the potential to hinder or distort the development of local seed markets. In this study we analyze the targeting and impact of seed aid across the green belt (cutting across the southern/equatorial states) of South Sudan. Using a primary and unique dataset on 1,990 farm households, we find that seed aid is widely rather than selectively distributed. Almost a third of farm households receive seed aid despite the general availability of locally recycled seed varieties. Seed aid distribution does not seem to favor particularly poor, vulnerable and food insecure households, but those that are embedded in community networks, organizations and institutions. Using a double robust methodology based on Inverse Probability Weighted Regression Adjustment (IPWRA), we also find that the adoption of seed aid by farm households does not result in increased maize production, as it is neither associated with agricultural intensification nor with the expansion of cultivated land. Seed aid seems to substitute rather than supplement local seed varieties. These findings emphasize a lack of intentionality in seed aid distribution. Still, it must be noted that the effectiveness of seed aid distribution may be greater outside our study area, above the green belt, where conflicts and natural disasters remain more frequent and intense, and where farmers are more likely to be seed insecure. But overall, this study supports the widespread perception that South Sudan is ready for a transition towards a market-based seed distribution system.

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Open Access
Crowding-out effect of tobacco consumption on household food expenditures in Cameroon

This study delves into the critical issue of household budgets in Cameroon, specifically focusing on the impact of tobacco expenditure. Tobacco use often represents a significant portion of a household’s financial resources, potentially leading to a phenomenon known as the “crowding-out effect.” This effect describes a situation where increased tobacco spending leads to a decrease in the budget allocated to other essential goods and services. To gain a deeper understanding of this phenomenon, this study employs a quantitative approach. The analysis utilizes data from a nationally representative household survey conducted in Cameroon during 2014 (ECAM4). A two-stage least squares (2SLS) technique is implemented to address a potential statistical issue known as endogeneity, which could otherwise skew the results. The study’s findings reveal a concerning trend: tobacco expenditure has a negative impact on the budget shares allocated to essential goods such as food, clothing, and household equipment. This negative impact appears to be particularly pronounced for male consumers within households. Based on these findings, the study suggested that implementing tobacco control policies could lead to significant improvements in household well-being and overall health status. These policies, by encouraging a reduction in tobacco use, could free up resources that could then be reallocated towards essential goods, ultimately improving household financial stability and health outcomes.

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Analysis of the ‘Good’ performance indicators of Non-Governmental Development Organizations

The current economic and political crisis has brought about a change in the environment in which Non-Governmental Development Organizations (NGDOs) have traditionally operated. This change can be summed up as a reduction in the funds received accompanied by an increase in the population they must serve. It is thus important to possess mechanisms that allow an analysis of the excellent work performed by NGDOs. A knowledge of the NGDOs’ efficiency in managing previous projects can contribute to improving their future achievements. This research aims to establish some objective indicators that permit an evaluation of the efficiency of these organizations. Firstly, a detailed analysis of the Spanish Agency for International Development Cooperation (AECID) regulation is conducted. This allows us to synthesise the indicators of a good performance by an NGDO based on a study of the eligibility criteria of public donors. The study concludes that the internal good practices criteria of the NGDOs of the AECID can be grouped into four criteria: experience, transparency and internal operations, human resources, and financial resources. Subsequently, a global performance measure of the NGDOs is built using a multi-criteria decision-making approach that minimises the distance from an ideal point whilst maximising the distance from an anti-ideal point. Our approach has been applied in the evaluation of 20 Spanish NGDOs.

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Open Access
Voluntary sustainability standards and technical efficiency of Honduran smallholder coffee producers

Sustainable coffee production promises to improve production techniques and enhance the socioeconomic conditions of smallholder farmers. Using primary survey data from 659 coffee producers in Honduras, this study assesses the impact of voluntary sustainability standards (VSS) on the technical efficiency of smallholder coffee production. The article uses the Stochastic Production Frontier Analysis model to analyze and compare the technical efficiency (TE) of certified and non-certified coffee producers. To provide reliable comparability between groups, the dataset was balanced using Covariate Balancing Propensity Score (CBPS). The results show that the mean technical efficiency was 52.86% for pooled certified farmers and 55.56% for non-certified smallholder coffee producers. Specifically, the technical efficiency of 4C farmers was 51.58%, 53.82% for the Fairtrade group, 60.56% for RA farmers, and 60.15% for the UTZ group, indicating substantial inefficiencies in the coffee production of the different certified groups. Results from Tobit’s model for the determinants of TE indicated that variables such as the age of the household head, access to credit, and training attendance are among the main factors that significantly drive the technical efficiency of certified and non-certified farmers. Based on the findings, enhancing education opportunities, improving infrastructure for better market access and farm management, and expanding credit access are recommended to improve efficiency in the study area. Honduran smallholder coffee producers have considerable potential to increase output with existing technology by improving their technical efficiency. Therefore, stakeholders’ efforts should focus on enhancing efficiency levels and capitalizing on potential gains for both certified and non-certified farmers, to ultimately improve the farmers’ livelihoods.

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Colonial status and income inequality in developing countries

This paper assesses the effect of the colonial status of ex-colonies, settler’s mortality rate, and duration of colonization on income inequality using a dataset comprising 78 developing countries over the period 1990 to 2019. We run Ordinary Least Square regressions on the cross-sectional data and subsequently test for sensitivity of the baseline model to historical, geographical as well as sociocultural factors. For robustness checks, we re-estimate the baseline model on a panel data setting using the Hausman Taylor estimator and a GMM linear dynamic panel data model that factors-in time-invariant historical and cultural variables. Results suggest that: (a) average increase in Gini income inequality for ex-settler’s colonies was higher when compared to ex-peasant colonies; (b) an extra year of the duration of colonization augmented typical overall income inequality and (c) the middling rise in income inequality of ex-British colonies was less than the other ex-colonies whilst ex-Spanish colonies posted an average increase in inequality that was higher than the other former colonies. Results were unaltered when we undertake sensitivity and robustness tests. Furthermore, colonial status mediates the relationships between Gini income inequality and settler’s mortality rate as well as Gini income inequality and duration of colonization. Thus, institutions established since colonization and perpetuated after independence have been more or less prone to incorporating redistribution (inequality) issues.

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Investment cooperation as a digital economy development method for the Republic of Kazakhstan and the EU

In modern conditions, the digitalisation of the economy is a vital part of any country’s development. It not only reduces costs for transactions but also increases the efficiency of many internal processes, especially managerial ones. Thus, it remains relevant in general to consider the opportunities for the development of digitalisation in a country. For this research, the study is conducted in the context of investment cooperation, using the example of Kazakhstan and the European Union. The research aims to show how this form of interaction between countries affects the development of the digital economy. The main scientific methods were analysis, abstraction, prediction, deduction. The study assessed the general features in the context of investment cooperation between the countries of the European Union and described the specifics of interaction between the countries. Subsequently, it was briefly described how the digital economy is developing in the Republic of Kazakhstan. Investment in the latest technologies has not been sufficiently effective in the country, due to general macroeconomic conditions and political instability, as well as inefficiency of state authorities. The study also assessed the relationship between Kazakhstan and the European Union in terms of the development of the digital economy and described joint projects in this area. This study brings new knowledge for the development of the digital economy, as well as a better understanding of the current development of the Republic of Kazakhstan and the European Union.

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The impact of LPG consumption on cooking energy efficiency: Evidence from rural Indian household panel data

The Indian government promoted the adoption of LPG by millions of poor households through targeted Pradhan Mantri Ujjwala Yojana connection subsidies. However, there is no empirical study on the impact of LPG adoption and usage on cooking energy efficiency. It is important to analyze the causal impact of LPG usage on cooking energy efficiency to help estimate the energy saving resulting from fuel-switching and understand the implications for the improvement of the environment, health, and socioeconomic outcomes. This paper leverages panel data on rural household energy use from the Access to Clean Cooking Energy and Electricity – Survey of States survey to evaluate the impact of the share of LPG consumption on overall cooking energy efficiency in 5,590 [n = 1,538 in 2015 and n = 4,052 in 2018] LPG adopters. To account for the potential endogeneity posed by the share of LPG consumption on our dependent variable, we used the village-level fraction of households who report the use of LPG as the main source of cooking fuel as an instrumental variable. We find a statistically significant impact of LPG consumption share on improved household cooking energy efficiency. A 10 % increase in the share of LPG reduces the total useful energy consumed by 9 % and the final energy consumed by 23 %. The extrapolated result indicates that the shift by all partial LPG user households in rural India in 2018 to exclusive (100 %) use of LPG will save about 81 million tonnes of firewood or 3.34 % of India’s primary energy consumption. A pro-poor subsidies for LPG refill and other policy measures that encourage households to shift to more exclusive use of LPG can reduce overall household energy consumption which is expected in turn to help achieve the environmental and health benefits of improved energy efficiency.

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