Double-hurdle Approach Research Articles

Determinants of commercialization among onion producer households in southern Ethiopia: a double hurdle approach

This study examined the determinants of onion commercialization of smallholder farmers in the Wolayita and Gomo zones of southern Ethiopia. Both primary and secondary data were used in this study. Primary data were collected from randomly selected 160 onion producers by using a structured questionnaire. Both descriptive statistics and the double-hurdle econometric model were employed in the analysis. The descriptive statistics indicated that the mean commercialization level of smallholder farmers in the study area was 79.51%, highlighting that onion producers in this region primarily focus on marketing their produce. Using the econometric model the first-stage double hurdle results revealed that family size, farming experience, frequency of extension contacts, and distance to the nearest market were factors significantly affecting the market participation decision of onion producers. The second stage of the double hurdle results indicates that education level, family size, frequency of extension contacts, land size allotted for onion production, and distance to the nearest market were factors that significantly affected the level of onion commercialization. Therefore, policies aimed at increasing farmers' access to better road networks and transportation facilities, improving access to education, promoting agricultural training programs, and improving extension services are recommended to improve the commercialization of onion production.

Clean Energy Adoption in Developing Countries: New Evidence of the Relevance of Risk Aversion and Education

Cooking with relatively clean fuel has numerous benefits, including reducing pollution and improving health and socioeconomic outcomes. Hence, some developing countries have implemented policies to promote LPG use. However, risks of accidents and explosions may prevent risk-averse households from adopting LPG. This study examines the causal effect of risk aversion on the adoption and expenditure of LPG using the seventh round of the Ghana Living Standards Measurement Survey and a double hurdle approach. We find that risk-averse households are four per cent less likely to adopt LPG and, if adopted, spend significantly less on LPG. The result holds even after endogeneity has been addressed with diverse econometric strategies. However, the effect disappears in households where the primary decision-makers have no formal education, while it is systematically stronger when they are educated. The results imply measures that reduce the actual and perceived dangers of LPG usage could effectively increase adoption rates.

An empirical investigation of the Indian households’ willingness to pay to avoid power outages

Reliable electricity is a key factor in improving the living conditions of households and sustainable development of countries. Developing country governments and international organizations address the question of how to obtain a reliable supply of electricity and thus eliminate power outages at the top of their political agendas. In this framework, the aim of this paper is to estimate the willingness to pay of Indian urban consumers for having a continuous supply of electricity, avoiding unexpected power outages, using contingent valuation method. Two different econometric approaches are used. The households in the survey have been asked to state their willingness to pay for five different types of outages. Empirical data from 1043 Indian households has been analyzed using double hurdle approach. The econometric results indicate that, among the investigated households with an average individual annual income around $1630,00, their willingness to pay to avoid power outage strictly depend on the length of outages ranging, on average, from $0.37 (2 h) $3.00 (12 h), that is, households prefer to reduce the duration of outages. Further, income and environmental attitude of respondents positively influence higher WTP to avoid power outages. Our findings provide useful insights for policy makers to design and promote more reliable and customer centric energy generation and distribution models.

Examining the adoption of agroforestry in Southern Rwanda: a double hurdle approach

This article analyzes determinants of farmers’ adoption decisions for agroforestry practices and the extent of adoption in rural Rwanda. The study also investigates the key constraints hindering smallholder farmers to adopt agroforestry. The study uses the cross-sectional data from a sample of 615 farmers and Cragg’s double-hurdle model is used for the empirical estimation. The findings show that farmers’ land ownership, cooperative membership, farming experience, market orientation, credit access, and distance to the market mainly determine adoption of agroforestry. Policies that enhance adoption of agroforestry should be consider the formation of farmers’ cooperatives and provision of door-to-door education to uneducated farmers. In addition, strategies for supporting liquidity-constrained households to get continuous and increased access to credit should be put forward. Agricultural and resources development policies should direct efforts toward increased access to institutional support services such as better extension to farmers through cooperatives to promote the adoption of agroforestry.

Market Participation of Small-Scale Rice Farmers in Eastern Bolivia

AbstractUsing a double-hurdle approach, we assess factors associated with the extent of participation in the rice market with data for small-scale farmers drawn from a nationally representative dataset. The results suggest that larger endowments and assets, animal farming and commercialization, and alternative off-farm income make farmers less likely to participate. Conversely, having access to credit, larger farm sizes, and being part of a farmers’ association all increase the likelihood of participation. Farms with better technological resources are also those with higher sales volumes. Further understanding market participation dynamics should prove useful for deriving evidence-based policy recommendations to strengthen this Bolivian sector.

Analyzing the drivers of smallholder farmer’s market participation in the Sahelian region of Niger

Many sub-Saharan farmers rely on agricultural production for home consumption and sell crops to meet their other needs. Farmers’ market intervention enhances economic expansion and helps to improve household food security. In our current study, we strive to explore the determinants of farmers’ decisions and the intensity of market participation in the Sahelian region of Niger, where little has been published, thereby filling the gap in the literature. A double hurdle approach was employed to achieve this objective using a sample collected from 1784 farm households in Niger.Our findings reveal that the total quantity of crops produced, gender, credit access, farming experience, training, drought, and assets positively impact household market participation significantly. Based on these results, as the quantity of crop sales is driven positively and significantly by the amount of crop produced, finding ways to increase crop production will increase household market participation. This can only be achieved by encouraging farmers to adopt high-yield crop varieties, such as climate-resilient ones, to boost productivity. Furthermore, considering the positive association between credit availability and smallholder market participation, any initiative in the agricultural sector that will bring efforts to supply credit and farm inputs to farmers will surely help to improve agricultural production and household market participation.

Export Spillovers from Foreign Direct Investment in Kenya's Manufacturing Sector: A Double Hurdle Approach

ABSTRACT: This paper investigates export spillovers from foreign direct investment on the exporting activities of domestic manufacturing firms in Kenya. Specifically, the paper aims at identifying the transmission channels through which foreign direct investment affects the export propensity and export intensity decisions of domestically-owned firms. The study also examines the importance of firm-level heterogeneity on the occurrence and behavior of spillover channels. The study uses a panel data set for manufacturing firms in Kenya, obtained from the World Bank Enterprise Surveys, conducted in three waves covering the period 2007–2018. Employing the Double-Hurdle model approach, and using the maximum likelihood estimation technique, we empirically demonstrate the relevance and significance of distinguishing three channels for intra-industry (horizontal) spillovers – demonstration effects, information effects and competition effects channels and one channel for vertical spillovers, that is, backward linkage channel. Findings of this study shows that domestically-owned firms in Kenya experience significant positive export spillovers on their export participation decisions through the demonstration effects channel and significant negative spillovers via the competition effects channel. The findings also show significant positive export spillover effects on the export intensity decisions of domestically-owned firms via information and competition effects channels and significant negative export spillover effects via the backward linkages channel. The results further provide evidence that firms belonging to industries with low technological levels were unable to absorb spillover benefits from foreign presence via the demonstration effects channel. The results also indicate that small and medium firms were unable to reap export spillovers benefits via information effects and backward linkage channels. The findings have important policy implications for managers of firms and policymakers in Kenya and other developing countries. To enhance export-related spillover benefits, domestic firms need to enhance their absorptive capacities by upgrading their technical capacities and improving quality standards. Governments should facilitate the exchange of information on investor needs, their capacities and skills requirements, thus bridging information gaps between domestic suppliers and foreign investors in addition to supporting domestic market linkages.

Determinants of Farmers’ Behavior towards Land Conservation Practices in the Upper Citarum Watershed in West Java, Indonesia

Erosion and pollution in the Citarum River have reached a very worrying stage. To overcome this problem, the government has launched the Citarum Harum program. One of the policies synergistic with the Citarum Harum program is the application of soil and water conservation principles in farming seasonal crops in the upper Citarum watershed (UCW). Historically, policies and programs for developing pro-conservation farming in this area have been carried out for at least three decades but have not been effective. Increasing the effectiveness of policies requires the existence of suitable instruments. Therefore, it is necessary to have a comprehensive and in-depth understanding of the attitudes and behavior of farmers in applying soil and water conservation. This study aims to identify the factors influencing farmers’ probabilities and participation in applying soil and water conservation techniques. A double-hurdle approach is used to identify determinants of farmers’ participation and intensity in applying conservation practices. The data were collected from samples of 244 farm households’ growing seasonal crops out of 499 farm households sample in the Bandung and West Bandung Districts. The results show that the determinants of farmer participation and intensity in the application of conservation lie in the ability to finance, land tenure and utilization, and the physical condition of the land. The level of education only affects participation opportunities, even if the increment is significant. In the future, conservation priorities must be more directed at a vegetative approach through developing synergistic perennial crops with particular efforts to convert vegetables on the sloping lands to perennial crops.

Determinants of Market Participation Decision and Intensity among Date Producers in Afar Region, Ethiopia: A Double Hurdle Approach

ABSTRACT Date palm production and marketing contribute substantially to food security, reduction of malnutrition, mitigation of poverty, and income diversification for poor agro-pastoralists in Ethiopia. However, marketing systems are not sophisticated and well functioning, and producers do not as such benefit from date market participation due to different factors. This study examined factors that determine date market participation decisions and intensity. A total of 384 date producers were selected through a multi-stage sampling technique. A Descriptive and Double hurdle model was employed to analyze the data. The Double hurdle econometric model revealed that producers with access to extension services, improved date palm varieties, credit, road infrastructure, market information, land access, better market prices, better educational status, and direct to consumer marketing channels were more likely to participate in and supply the date market. Whereas producers who had livestock, dwellings distant from the nearest market, or a greater number of date palm trees, were adversely affected in date market participation intensity. The results of this study support the recommendations for establishing extension services, rural education, rural road infrastructure, marketplaces, and institutional support; and providing credit access, improved date palm varieties, additional hectares of land for date production, and updated market information to date palm producers.

Drivers of and barriers to adoption of improved sunflower varieties amongst smallholder farmers in Singida, Tanzania: A double-hurdle approach

AbstractYield-enhancing agricultural technologies, like improved crop varieties, are widely promoted in developing countries to improve the food security, income, and welfare of farm households. Nonetheless, farm households show low adoption rates of these technologies. To gain more insight into the drivers of and the barriers to the adoption of improved crop varieties, we study the adoption of improved sunflower varieties by smallholder farmers in Tanzania. Unlike most earlier studies, we distinguish between the initial adoption and the extent of adoption. Additionally, we investigate the roles of market constraints and liquidity constraints, which are largely ignored in previous adoption studies. We find that risk aversion and liquidity constraints are barriers to adoption, whilst radios and extension service are important information channels for new technologies. Our results can help to improve policies, development programmes, and business decisions and finally to enhance agricultural productivity and farm household welfare.

Modeling the Adoption and Intensity of Climate-smart Maize Varieties in Embu County, Kenya: Double Hurdle Approach

This paper examines the determinants of adoption and intensity of climate-smart maize varieties (CSMVs) in Embu county of Kenya using primary data. A total sample of 550 respondents were sampled through a multistage and systematic random sampling techniques. Data were analyzed using descriptive statistics and a double hurdle model. The results indicated that the level of awareness was 86 percent while the adoption rate was 63 percent. The results further indicated that land size, land ownership, size of the family, contact to extension officer, and previous yield had a significant influence on the intensity of adoption. Thus the results justifies the need for promotion of not only awareness but also widespread adoption of climate-smart maize varieties both locally and nationally. It is therefore recommended that, adequate policies and development programs for promoting use of climate-smart maize varieties in Kenya should be directed towards input and output delivery, land under climate-smart maize varieties, extension service provision, affordable credit, education and age mechanism that are more effective and youth oriented initiatives.

Determinants of market participation among smallholder farmers in Southwest Ethiopia: double-hurdle model approach

BackgroundAgricultural production by smallholder farm households is a means of livelihood for many rural households in developing economies, including Africa. Commercializing smallholder farmers in the agricultural sector is an indispensable path to boost economic growth and development of most developing countries, like Ethiopia. But, maize marketing has not been given due attention, which has potential production volume and marketability. Therefore, this study is designed to identify determinants of market participation decision and volume of supply among smallholder maize producer farmers in Southwest Ethiopia.MethodsData for this study were collected through cross‑sectional survey from maize producer farm households. The primary data were generated by household survey using a pre-tested structured questionnaire. A both purposive and random sampling technique was used to draw an appropriate sample of 546 maize producer households for this cross-sectional survey study. The data were analyzed using descriptive statistics and double-hurdle econometric model.ResultsThe result of the survey indicates that out of total 546 maize producers, 381 households are maize market participants and 165 households are non-participants. First hurdle model results show that nine variables—education level, farming experience, quantity of maize produced, cooperative membership, distance to nearest market, amount of credit received, off/non-farming income, number of oxen and perception about lagged price—significantly affect the market participation decision among maize producer farmers. The second hurdle result confirmed that seven variables—sex, family size, land allocated for maize, number of oxen, distance to nearest market, livestock holding and perception about lagged price—significantly affect the level of market participation by maize producer farmers.ConclusionThe findings of this study revealed that understanding the factors and its extent is very important for policy-making to address the problem of market participation decision and level of participation among smallholder farm households. Therefore, the study suggests that important resource and socio-economic factors must take into consideration to enhance the productivity and strength supportive institutions or infrastructural facilities in the study area to improve market participation decision and level of participation of smallholders.

Do the Heterogeneous Determinants of Repayment Affect Differently across Borrowers of Diverse Credit Sources in Rural Assam? A Double Hurdle Approach

This study made an attempt to answer the question: Do the heterogeneous determinants of repayment affect the borrowers of diverse credit sources differently? The study is based on data collected from 240 households from three districts in the lower Brahmaputra valley of Assam through a carefully designed primary survey. Besides, the study uses the double hurdle approach and the instrumental variable probit model to reduce possible selection bias. It observes better repayment performance among formal borrowers, followed by semiformal borrowers, while occupation wise it is prominent among organised employees. It has been found that in general, the household characteristics, loan characteristics and location-specific characteristics significantly affect repayment performance of borrowers. However, the nature of impact of the factors influencing repayment performance is remarkably different across credit sources. It ignores the role of traditional community-based organisations in rural Assam while analysing the determinants of repayment performance. The study also recommends for ensuring productive opportunities and efficient market linkages in rural areas of Assam. The study is based on an original data set that has specially been collected to examine question that—do the heterogeneous determinants of repayment affect the borrowers of diverse credit sources differently in the lower Brahmaputra valley of Assam—which has not been studied before.

Determinants of adoption and intensity of improved faba bean cultivars in the central highlands of Ethiopia: a double-hurdle approach

BackgroundFaba bean (Vicia faba. L) is the most important pulse crop both in area coverage and volume of annual production in Ethiopia. However, productivity in terms of yield in Ethiopia is still far below its potential. One important reason is that farmers are largely dependent on their local landraces. Despite the release of about 34 improved faba bean cultivars, farmers’ use of certified improved seeds is very low. This study, therefore, aimed to generate useful information on farmers’ adoption of improved faba bean cultivars by identifying factors that determine a farmer’s decision to use improved cultivars.MethodsA multi-stage sampling technique was followed to select sample households. A cross-sectional household survey was used to collect data from 168 households that were randomly selected. Moreover, focus group discussions and key informant interviews were conducted. For data analysis, the Double-hurdle econometric model was employed.ResultsThe results revealed that the majority, i.e., 77% of rural households depended on their local landraces. The adoption rate of improved faba bean seed at the household level was 23% which is very low. This low adoption rate was mainly due to a lack of access to improved seed and a lack of awareness about the improved cultivars. The results suggest that the decisions to adopt the improved cultivars and how much land to be covered appear to be explained by different processes. The double-hurdle econometric model result further revealed that while a farmer’s adoption decision is influenced by family size, farmers’ awareness about the existing improved cultivars, and extension contact, the intensity of adoption is determined by livestock holding and access to market information.ConclusionThe result showed that most of the rural households were largely dependent on their local faba bean landraces which result in low yields at harvest. Therefore, it is suggested that the promotion of improved faba bean cultivars and improve farmers’ access to extension service and timely market information are the most decisive factors to be emphasized to improve the adoption of improved cultivars.

Modeling the adoption and use intensity of improved maize seeds in Benin, West-Africa: Double-hurdle approach

Improved maize seeds are one of the main factors that can contribute to improving maize productivity. This paper was carried out with the aim of identifying the determinants of adoption and improved maize seeds’ intensity use on households in all areas favourable to maize production in Benin using pooled data on 490 producers. Descriptive statistics such as mean, standard deviation, percentage, frequency distribution, t and chi-square tests were used to summarize the characteristics of the sampled producers. Cragg's Double Hurdle model was also used to categorize producers who adopted or who did not adopt improved maize seed and those who intensified the use of improved maize seed. The results showed that literacy, easy access to improved seed, specific training received on the use of improved varieties and gender, affected the adoption of improved maize seed while easy access to improved seed, maize yield, relationship with extension services, total household size, age squared, number of experience years in maize production, and distance from the producer to where the seed was purchased had a significant influence on the decision to intensify the use of improved maize seed. The fact that the variable easy access to improved seeds affected not only the adoption of improved seeds but also the intensification of their use, confirmed that access to improved seeds was an indisputable success factor for the intensification of improved seed use. Giving producers the capacity to obtain improved maize seed that was financially and geographically improved was a very important aspect to be considered by policy makers in the definition of agricultural policies. Predisposing factors for access(perception of varieties, attitudes towards the choice of new varieties, knowledge and management of these varieties)and capacity factors for access(income, availability of seeds in the environment, and seed prices)must be considered. The establishment of a wide seed distribution network through government and non-governmental organizations or private actors could, therefore, be important to reduce transaction costs and improve access to improved maize seed, and then increase the rate of adoption and continued use of improved seed.

Potato Market Participation and Its Extents Evidence from Southwest Ethiopia: A Double Hurdle Approach

Potato is an important commodity for livelihood in many parts of Ethiopia. Potato producers in Ethiopia face sophisticated marketing challenges, including inadequate access to market and low amount of marketed surpluses due to subsistence-oriented production of potato. The study aimed to identify factors that determine the market participation and its extents. About 136 potato producers were selected randomly from peasant association found in Dedo Districts of Ethiopia. Quantitative and qualitative data were collected from primary sources. Descriptive and econometric methods of data analysis were used to analyze data from the survey. A double hurdle model was applied to investigate factors affecting market participation and its extents. Results of descriptive statistics revealed that out of the total sample producer, 87.5 % of sample household has participated in the potato market. Age, sex, education, land size allocated for potato, and non-farm income were significantly influencing potato market participation. Age, sex, education (years of schooling), non-farm income, active labor and land allocated for potato influenced smallholder farmers level of market participation.

Determinants of adopting improved bread wheat varieties in Arsi Highland, Oromia Region, Ethiopia: A Double-Hurdle Approach

The improvement of agricultural productivity using technology is an important avenue for increasing output and reducing poverty in sub-Saharan countries. However, the low adoption of high yield varieties has been identified as one of the main reasons for low productivity in sub-Saharan Africa. Consequently, the study examined the effect of demographic, socioeconomic and institutional factors affecting adoption and adoption-intensity of improved wheat varieties (IWVs), using data obtained from randomly selected farm households in the Arsi Highland of Ethiopia. We estimated a Double hurdle model to analyze the determinants of the intensity of IWVs adoption, as adoption and use intensity were two independent decisions influenced by different factors. The results also show that Double hurdle model is more appropriate than the Tobit model. Empirical estimates of the first hurdle reveal that wheat farming experience, distance to cooperatives, renting a tractor and combine harvester, Urea application, and net income from the wheat grain sale all significantly increased the likelihood of IWVs adoption. Estimates of the second hurdle revealed that the decision to use the optimal intensity of IWVs by smallholder farmers was influenced by seed availability, row planting, and distance to cooperative all significantly and positively. The intensity of adoption was also found to be negatively related to the proportion of farmland allotted for wheat production. Accordingly, policies and interventions that are informed about such factors are required to accelerate the adoption and adoption-intensity of IWVs in Ethiopia to realize a wheat Green Revolution and fight food insecurity in a sustainable manner.

Double hurdle approach to consumer awareness, perception of, and willingness to pay for greenhouse vegetables

ABSTRACT Understanding awareness, perception of, and willingness to pay from the consumer’s perspective could increase acceptance of greenhouse grown vegetables. Multistage sampling was used to select 120 respondents consuming greenhouse vegetables. Data were collected with a structured questionnaire, analyzed with descriptive statistics, and a double hurdle regression model. Most respondents were male with mean age, household size and monthly income of 38 years, 5 persons and ₦115,566.7, respectively. The majority of respondents were aware of, and had favorable perceptions of, greenhouse vegetables [tomato (Solanum lycopersicum L.), cucumber (Cucumis sativus L.), and bell pepper (Capsicum annuum L.)], but were not willing to pay the additional cost. The mean amount respondents were willing to pay∙kg−1 of tomato; cucumber and bell pepper were ₦799.17, ₦776.67, and ₦742.92, respectively, ₦ is the Naira, Nigerian currency, 1$US = 365₦. Increased awareness and income could increase respondent willingness to pay for greenhouse vegetables while increased number of dependent individuals reduces it. Greenhouse vegetables are luxury goods, increasing income could increase respondent overall acceptance. Information leading to implementing pricing tactics and promotion could help improve overall respondent acceptance of greenhouse grown vegetables.

Factors Influencing Market Participation among Food Crop farmers in Oyo State: A Double Hurdle Approach

Factors Influencing Market Participation among Food Crop farmers in Oyo State: A Double Hurdle Approach

Determinants of adoption of modern rice varieties in rural Vietnam: a double-hurdle approach

PurposeThis article aims to examine the determinants of farmers' decisions on the adoption of modern rice varieties in two stages, including whether to adopt and, if so, how much to adopt.Design/methodology/approachThe Double-Hurdle and Tobit models are applied to determine whether farmers make their two-stage decisions separately or simultaneously.FindingsThe findings reveal that farmers make their decisions on the probability of adoption and the intensity of adoption separately. Ethnicity, agricultural labor, land, rice production asset and non-farm self-employment are determinants of the farmers' decision on the adoption of modern rice varieties in both stages. Previous adoption, gender and an irrigation program only have a significant effect on the farmers' probability of adoption, while the market only significantly explains the farmers' decision on the intensity of adoption.Research limitations/implicationsDue to the unavailability of data, this article does not include the attributes of the rice varieties or farmers' perception about the varieties in the model.Originality/valueThe uniqueness of this research is that it attempts to examine the determinants of farmers' two-stage decisions on whether to adopt and how much to adopt the modern rice varieties by application of the Double-Hurdle method.