Double-hurdle Model Research Articles

Environmental Compliance and Enterprise Innovation: Empirical Evidence from Chinese Manufacturing Enterprises.

This paper embeds environmental compliance factor and compliance cost factor into the M-O monopolistic competition and multi-product firm model to construct a theoretical model applicable to environmental compliance and enterprise innovation. In addition, we also construct a new environmental compliance index. We use the random-effects Tobit model and the double hurdle model to empirically test the micro-data from the Database of China Industrial Enterprises from 1998 to 2013, then we use the Generalized Propensity Score Matching (GPSM) to conduct a robustness test. The robustness conclusion is that environmental compliance has a significant U-shaped relationship with enterprise innovation, which means, environmental compliance will inhibit enterprise innovation on the left of the inflection point of environmental compliance (0.669), while environmental compliance on the right of the inflection point will promote enterprise innovation. The sub-sample regressions show that, enhanced environmental compliance of state-owned enterprises, mature enterprises, core area enterprises and export enterprises with low level of the environmental compliance, makes the greater inhibition to enterprise innovation, and enhanced environmental compliance of above enterprises with high level of the environmental compliance, makes the greater contribution to enterprise innovation. To this end, the government should adopt the policy, from the shallower to the deeper, to promote the construction of environmental compliance, and identify the inflection point of the environmental compliance on enterprise innovation to stimulate the role of environmental compliance in promoting enterprise innovation.

English

Credit is an important instrument used to improve the welfare of the poor. It could enable the rural households in overcoming liquidity problems, enhancing productive capacity and adopting new technologies. In Ethiopia, the government is promoting microcredit services, but the participation of rural households for credit service is limited. Inappropriate use of loan money also exacerbated the challenges in achieving the desired goal, and consequently, it influenced the loan repayment performance of the household. Therefore, this study was conducted with the aim of identifying socioeconomic factors prompting farm households` participation in Omo Microfinance services and factors determining the utilization of loan money for proposed activities. To conduct this study, 120 rural households were selected randomly from 6 kebeles of Damot Gale District. The participation decision of the households in the credit market and factors determining the level of credit utilization for proposed activity are analyzed using double hurdle model. The study result shows that distance to formal lending institutions, education status, total livestock unit and frequency of contact with extension agents have significantly influenced access to credit. The second hurdle of the model reveals that amount of loan received, peer-monitoring system, expenditure in social festive and frequency of contact with extension agents affected the performance of loan utilization. Therefore, minimizing the barriers of access to credit and considering factors affecting loan money utilization for proposed activity is vital to achieve the desired goal.   Key words: Credit, credit market participation, loan utilization, Omo microfinance, Damot Gale.

Determinants of Sesame Commercialization among Smallholder Farms: The Case of Melokoza and Basketo Districts, Southern Ethiopia

This study investigated determinants of sesame commercialization among smallholder farms, the case of Melokoza and Basketo special woredas, Southern Ethiopia. For this study cross sectional data was collected from 184 randomly selected smallholder farm households in the district. The survey data was analyzed using descriptive statistics and double-hurdle model. From the descriptive statistics it was found that the level of commercialization of sesame in the district was 79%, which by far above the national commercialization average (35%).

Smallholder farmers’ adaptation strategies to mitigate the effect of drought on maize production in OR Tambo District municipality

There is evidence that climate variability has affected agriculture and the expectation is that the situation will get worse over time. This study examined smallholder farmers’ adaptation strategies to mitigate the effects of drought on maize production in OR Tambo District in South Africa. A questionnaire was used to collect primary data from 200 farmers, which was then analyzed using descriptive statistics, the adaptation strategy index and the double hurdle model. The study utilized the adaptation strategy index to establish the relationship between adopting adaptation strategies and maize production. The farmers ranked the adaptation strategies in terms of their usefulness in adapting to drought and successfully alleviating a decline in maize production. The farmers ranked shifting of planting date, reduction of maize cultivated area, planting drought resistant varieties, crop diversification and intercropping as the most useful adaptation strategies. The study utilized the double hurdle model to identify the factors affecting the farmers’ adoption of drought adaptation strategies. The study found that gender of the household head, level of education of the household head, household size, extension services and land ownership influence farmers’ choice of adaptation strategies. Training of woman who head households and poor farmers on climate change adaption strategies options available is necessary.

Forest-based livelihood choices and their determinants in Western Kenya

Forest extraction is an important livelihood activity for millions of low-income households in rural areas of developing countries. Understanding the choices households make to extract forest products can help formulate strategies for preventing livelihood strains associated with forest degradation. This article evaluates the nature, extent and determinants of forest extraction among rural households in western Kenya. Data were obtained from a survey of 924 randomly selected households in the Mt. Elgon area in western Kenya. The level of forest extraction was measured as the aggregate value of products extracted, while a Double Hurdle model was applied to assess the factors influencing forest extraction. The results show that the choice to engage in forest-based livelihood was generally higher among households with lower asset value, membership in forest user associations, and headed by males. The results further show that although the majority of households’ engaging in forest-based livelihood were of the lowest wealth category, households in the middle wealth category were found to extract higher value products. Institutional characteristics, including access to agricultural markets, credit, extension, and membership to forest user groups, increased the likelihood of households’ extracting higher value products. Overall, the results show that in addition to asset endowment, other contextual factors, such as access to markets, agricultural extension, and membership to farmer groups defined whether a household extracted forest products for survival or accumulation.

Analysis of the association between exercise habits and socio-economic status using a double hurdle model

Analysis of the association between exercise habits and socio-economic status using a double hurdle model

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.

Livestock farmers’ perception and adaptation to climate change: panel evidence from pastoral areas in China

As the world’s largest land use sector, livestock farming is vulnerable to climate change. This study adds to existing literature by investigating the impacts of herders’ climate change perceptions on adaptive strategies and distinguishing between the short-run and long-run effects. We use double-hurdle models and an unbalanced panel dataset of 1514 household observations collected from the pastoral areas of Inner Mongolia, Xinjiang, and Tibet for the period of 2016–2018. We find that perceptions of long-term temperature and rainfall changes lead farmers to adopt various adaptive strategies, whereas perceptions of short-term weather hazards mainly trigger production management strategies such as forage supplementation and herd destocking, without affecting long-term strategic planning such as engaging in non-agricultural jobs to diversify income sources. The findings that livestock farmers tend to adopt temporary strategies under short-term perceptions while seeking more resilient adaptations under long-term perceptions are robust, based on alternative measures for adaptation intensity and under different production scales. An understanding of these strategies provides a means of influencing the adaptive responses of vulnerable groups.

Determinants of Members’ Output Marketing through their Multipurpose Primary Cooperatives in Hababo Guduru Wereda, Ethiopia

In developing counties Multipurpose primary cooperatives are an ideal means for self-reliance, higher productivity level and promotion of agricultural development. Hence, this study aims to identify the factors affecting members’ marketing decisions through their multipurpose primary cooperatives in Hababo Guduru woreda, Oromia Regional State, Ethiopia. Both primary and secondary data were used for this study. A two stage random sampling procedure was adopted to select four multipurpose cooperatives and a total of 193 sample respondents from the Woreda. Primary data pertaining to the years2017/18 and 2018/2019 was collected from the sampled respondents through semi structured questionnaire. The survey data was analyzed using descriptive statistics and double-hurdle model. About 52.3% and 47.7% of sample cooperative members were users and non-users of cooperatives as marketing agent. Results of the model analysis showed that in the first hurdle, educational status, access to credit, patronage refund, cooperatives price and position in cooperative management committees are played positive and significant role in members’ decision to participate in output marketing through cooperative. In the second hurdle; educational status, farm land size, yield obtained, patronage refund, and farming experience have positive and significant role in the volume of farm product sold through cooperative; while family size, and distance of cooperative from cooperative members residences were found to have negative and significant role. Educational status and patronage refund were found to affect both ‘decisions to participate and intensity of participation in farm product marketing through their primary multipurpose cooperative.

Smallholders’ Willingness to Pay for Mechanization (Tractor Services) in Delta and Benue States, Nigeria

ABSTRACT The majority of the smallholder farmers mainly used clue implements. However, the extent to which they are determined to change such practice remains unknown. This paper investigates the smallholders’ willingness to pay (WTP) for tractor services, factors that affect the smallholders’ WTP for tractor services as well as factors that affect the amount of money the smallholder is willing to pay for tractor services. Multi-stage sampling technique was used to collect data from 280 respondents in the study area. The contingent valuation methodology was used to measure the smallholders’ WTP. Descriptive statistics and the double hurdle model were used to analyse the results. The majority of the smallholder farmers were willing to pay for tractor-use. Age, farm size and location affect the smallholder’ WTP for tractor services. Expenditure and location affect the amount of money willing to pay for tractor services by the smallholder. There is a prospective growth for hired tractor services business due to smallholders’ WTP. It was suggested that entrepreneurs should invest in the business of tractor hired services since the farmers were willing to pay for their services. More researchers should be done on how to sustain the smallholders’ demand and WTP for tractor services.

The effect of content depth and deviation on online review helpfulness: Evidence from double-hurdle model

How does the content of a product review shape its perceived value? We propose two information theory-based constructs derived from probabilistic topic models and show their relationship with review helpfulness. The first construct, content depth, quantifies the breadth-depth tradeoff of a review and has an informational influence on readers’ voting behavior. The second construct, content deviation, indicates the deviance of the review content in comparison with others and exerts a normative influence on readers’ voting behavior. Noting the possibility that a review can get voted but has zero helpfulness score, we use a double-hurdle model to simultaneously estimate the probability of a review being voted and its helpfulness. The analyses on three product categories show that reviews with more depth and less content deviation are rated more helpful. Further, the relationships are moderated by a number of factors, including the deviation of numerical rating, recency of the review, and the reputation of the reviewer. The research contributes to the literature by showing how the content of a review and the interaction of content and numerical ratings jointly create value for consumers.

Seed Security Factors Driving Farmer Decisions on Uptake of Tissue Culture Banana Seed in Central Uganda

Despite the promotion of tissue culture (TC) banana to curb the spread of diseases, farmer use of such quality planting material remains low. This study utilizes the Double-Hurdle model on cross-sectional data of 174 banana farmers in Central Uganda to analyze the drivers for uptake of TC banana plant materials. Results show acceptability (β = 0.74; p < 0.01), adaptability (β = 0.69; p < 0.01) and availability for farmer use (β = 1.04; p < 0.01) along with social influence, farmer competences and socioeconomic factors positively influence farmer uptake of the TC banana plantlets. For uptake intensity, the main drivers include acceptability (β = 0.39; p < 0.05), accessibility (β = 0.39; p < 0.01) and farmer competences. This study demonstrates that seed security factors with farmer competencies, social influence and socioeconomic factors influence farmer decisions on uptake of TC technology for banana production. Findings emphasize the need for more involvement of extension services and research institutions in the education and promotion of TC plants in farming communities. We recommend that banana TC developers and promoters focus attention on banana varieties that are acceptable and adaptable to farmer environmental conditions.

The Rural Labor Transfer with Respect to the Development of Farmland Leasing Market: Evidence from Rural China

Abstract Since relaxing policy control for farmland leasing, rural labor transfer also arises. The paper estimates the relationship between farmland leasing market and rural labor transfer based on a Double Hurdle Model with the survey data collected from 2793 households in rural China. Results show that the farmland leasing-in scale restrains rural labor transfer mainly in the full-time movement by stimulating the behavior of farmers to plant rice, whereas farmland leasing-out scale, compared to farmland leasing-in scale has an opposite effect on labor transfer, and performs this effect by increasing the likelihood of the desired degree for rural households to do urban business. Specifically, we also find the underlying channels such as the farmers’ desire to the agricultural investment and the Dipiao-ticket transaction through which farmland leasing-in or -out scale affects labor transfer separately. We further find a negative effect of farmland leasing-in scale on household savings and a positive effect of farmland leasing-out scale on that mainly evidently in the group of rural labor transfer. Moreover, farmland leasing-out scale has no significantly influence on the urban life worry of farmers, does not let farmers worry about their urban housing, and does worry about their children’s education. Our study has a deep policy implication on social planners in China to strengthen the systems of the farmland leasing and rural labor transfer.

Impact of irrigated agriculture on welfare of farm households in northern Ethiopia: panel data evidence*

AbstractThe purpose of this study was to assess the impact of participating in irrigated agriculture on the welfare of smallholders in the semi‐arid economy of northern Ethiopia. Two rounds of balanced panel data for the production seasons 2009/2010 and 2014/2015 collected from 407 smallholder farmers were analysed. Correlated random effect double hurdle models are used to estimate participation and extent of involvement in irrigated agriculture. The household fixed effect with a control function approach was used to assess the impact of participating in irrigated agriculture on welfare outcomes. The double hurdle model results indicate that households with at least one plot owned and located within the irrigation command area positively and significantly affect participation in irrigated agriculture. The fixed‐effect model results also revealed that the area planted with use of irrigation enables smallholders to grow crops more than once a year; to ensure increased and stable production, income, consumption and asset accumulation positively. The finding of this study confirms that the potential role of irrigated agriculture is not limited to improving crop income and consumption of rural households, but also higher production from irrigated agriculture generates surplus products and better chance to integrate with the output market.

Fruits and Vegetables Consumption Behaviour: A Case Study of Rural and Urban Households in the Techiman Municipality, Ghana

The study examined the determinants of the consumption of fruits as well as the factors that influence the expenditure on fruits and vegetables among households in the Bono East Region of Ghana. Cragg’s Double Hurdle model was used for the analysis of the determinants and consumption expenditure of fruits, whereas the two-stage least squares regression was used to analyse factors that influence the consumption of vegetables. From the study, gender, fruits health benefit awareness, education, household size, per capita household expenditure (poverty status) influenced the consumption of fruits positively. However, marital status, expenditure on cereals and non-food items negatively influenced the consumption of fruits. In terms of methodological approach, the results showed that the consumption of fruits is a two-stage decision process and not a one-stage decision. From the study, it is recommended that public health education on fruits consumption should be gendered as well as the targeting of school pupils along with other relevant identified segment is likely to have a positive impact. Future studies should consider the separability and selectivity tests for the determination of an appropriate methodological approach.

Mineral fertilizer use in land-scarce conditions: Case of Rwanda

Abstract This study was undertaken to investigate the use of mineral fertilizer by smallholder farmers in order to understand the set of factors influencing the decisions of smallholder farmers to use fertilizers in land-scarce conditions. Using descriptive analysis and the Cragg’s double-hurdle model, the study identified and analyzed factors that determine smallholder farmer adoption of mineral fertilizers and those that affect the intensity of household mineral fertilizer use. From factors that only influence the decision of smallholder farmers to use mineral fertilizers, distance to fertilizer market and livestock affects it negatively; while farmer association membership, landholding per capita, access to extension services and the size of household affect it positively. The variable “domestic assets” which is a proxy variable for smallholder farmers’ wealth affects only the intensity of use of mineral fertilizers. Literacy of head of household, share of potatoes sold and extension services have an effect on the probability of adoption and intensity of mineral fertilizer use. Improving smallholder farmers’ access to information (extension services and education) and increasing mineral fertilizer profitability through improving agricultural commodity markets are essential for raising both the adoption of mineral fertilizers and the extent of mineral fertilizer use among smallholder farmers in Rwanda.

Examining institutional credit access among agricultural households in Eastern India: trends, patterns and determinants

PurposeThis paper is an attempt to understand the pattern of credit among agricultural households in Eastern India and to identify the correlates of their access to institutional credit for policy imperatives.Design/methodology/approachThe study uses unit-level data from the All-India Debt and Investment Survey of the 59th and 70th rounds of the National Sample Survey Office for the years 2002–2003 and 2012–2013. Cragg's double-hurdle model and the Heckman selection model are used to estimate the determinants of access to and the amount of institutional loans taken by households. These models also account for potential selection bias in the findings.FindingsThe study reveals that access to credit is strongly associated with the socioeconomic and demographic characteristics of agricultural households. However, about half of the farmers in the eastern states of India lack access to institutional credit despite the government's attempts to include them in the ambit of formal financial services. Thus, strategies for developing agriculture in Eastern India must include efforts to bring small and marginal farmers under the coverage of institutional credit.Research limitations/implicationsThese data are based on the responses given by the sample households and not the experimental data. The data pertain to the year 2013.Originality/valueThe findings emphasize that strategies for developing agriculture in Eastern India must give special push to enhance small and marginal farmers' access to institutional credit.

Factors influencing agripreneurs’ investment decision and level in clean seed potato enterprises in the highlands of Kenya

High quality seed potato (Solanum tuberosum L.) supply has failed to meet the growing demand estimated at 250,000 metric tonnes from 161,000 ha of ware potato for cultivation by 600,000-800,000 small-scale farmers in Kenya. Increased investments by private seed potato multipliers could alleviate the shortage of seed potato by enhancing availability and accessibility to quality seed, and bridging the supply that currently meets less than 5% of the demand. The objective of this study was to investigate factors that influence agripreneurs’ investment decisions and level of investment in clean seed potato enterprise in the highlands of the Rift Valley, Kenya. The study was conducted through a cross-sectional survey of 380 agripreneurs. The Double hurdle (Craggit) model analysis revealed that training, frequency of extension services, family history in seed potato business, years spent in school and selling price, significantly (P<.05) influenced the probability of agripreneurs’ decision to invest in clean seed potato enterprises in the highlands of Kenya. Initial land size put under seed potato production at the commencement of the enterprise, higher annual household income, number of cropping seasons, total land under seed potato and group membership fee also significantly (P <.05) influenced the decision and level of investment in clean seed potato enterprise.

Factors influencing agripreneurs’ investment decision and level in clean seed potato enterprises in the highlands of Kenya

High quality seed potato (Solanum tuberosum L.) supply has failed to meet the growing demand estimated at 250,000 metric tonnes from 161,000 ha of ware potato for cultivation by 600,000-800,000 small-scale farmers in Kenya. Increased investments by private seed potato multipliers could alleviate the shortage of seed potato by enhancing availability and accessibility to quality seed, and bridging the supply that currently meets less than 5% of the demand. The objective of this study was to investigate factors that influence agripreneurs’ investment decisions and level of investment in clean seed potato enterprise in the highlands of the Rift Valley, Kenya. The study was conducted through a cross-sectional survey of 380 agripreneurs. The Double hurdle (Craggit) model analysis revealed that training, frequency of extension services, family history in seed potato business, years spent in school and selling price, significantly (P<.05) influenced the probability of agripreneurs’ decision to invest in clean seed potato enterprises in the highlands of Kenya. Initial land size put under seed potato production at the commencement of the enterprise, higher annual household income, number of cropping seasons, total land under seed potato and group membership fee also significantly (P <.05) influenced the decision and level of investment in clean seed potato enterprise.

Determinants of smallholder farmers’ decisions on fertilizer use for cereal crops in the Ethiopian highlands

AbstractThis study identified decision variables influencing fertilizer adoption and optimal fertilizer rates among smallholder farmers in the Ethiopian highlands. The fertilizer adoption and fertilizer use were examined in four regional states using a questionnaire survey, which was administered to 2880 farm households. A double hurdle model was used to analyze factors influencing the two independent decisions of adoption of fertilizers and use of fertilizers. The model estimates of the first hurdle revealed that the probability of fertilizer adoption increased by 1.2% as household education status improved, by 1.4% for an increased number of active family members, by 5.6% with improved access to credit, by 3.4% with cooperative membership, by 3.3% with an increase in farm size, by 4.6% when soil and water conservation practices are employed, and by 3.4% when agroecology of the farm is located in the medium to highland zone. Conversely, the probability of fertilizer adoption reduced by 0.9% for an increase in family size, 0.6% with 1 km distance from all-weather road, 1.6% for a kilometer further to farm plots, and 0.9% for an increase in number of parcels. The intensity of use of fertilizers was influenced by education status of the household head, family size, access to credit, membership to cooperatives, use of crop rotation, annual income, number of farm plots owned, use of soil and water conservation, and agroecology. Therefore, a concerted effort is needed to encourage fertilizer adoption and optimum fertilizer use intensity by improving households’ resource endowment, institutional capacity to deliver services, and infrastructure development.