Double Hurdle Research Articles

Credit access and intensity of borrowing by irrigated rice farmers in Ghana: the role of extension services

PurposeCredit is essential in the farm business because it facilitates the adoption of productive technologies such as irrigation. However, access to credit remains a significant hurdle for sub-Saharan Africa, including Ghanaian farmers. Therefore, the authors assessed credit utilization and the intensity of borrowing by irrigated rice farmers in the Upper East region. In addition, how extension moderates the amount borrowed was analysed.Design/methodology/approachThe multistage sampling approach was used in the study. The Tono and Vea irrigation schemes were purposively selected. Proportionally, 318 rice farmers were sampled from the Tono irrigation scheme and 159 from the Vea irrigation scheme. Cragg's double hurdle and moderation analysis were used.FindingsIt was uncovered that gender, age, years of farming, total farm size, rice farm size, contract farming and off-farm employment explain farmers' decision to borrow. On the other hand, the intensity of borrowing was influenced by gender, age, years of farming, rice farm size, contract farming and the number of extension contact. The moderation analysis revealed that extension contact improves the amount borrowed by farmers.Research limitations/implicationsWhile there are irrigated rice farmers in other regions of Ghana, this study was limited to rice farmers under the Tono and Vea Irrigation schemes in the Upper East region.Originality/valueThis study investigated the moderating role of extension contact on amount borrowed in Ghana. This makes a modest addition to the limited literature on the moderating role of extension and credit access.

Drivers of smallholder farmers’ organic farming adoption and the organic share of the total cropland in Northern Ghana

Organic agriculture (OA) claims to have the potential to address future ecological challenges in food production. However, there is a need to scale up OA in order to meet increasing consumer demand for organic foods. Against this background, this study examined the factors driving farmers to adopt organic vegetable production (OVP) and how much acreage they commit to it. We used structured questionnaires to gather data from 400 farmers in the northern regions of Ghana. To analyze the data, we used Heckman selection model in comparison to Cragg’s double hurdle regression and standard Tobit regression models. The results show that sex, age, education, extension visits, farmer association membership, the timing of production, and access to marketing information are the key factors influencing farmers to adopt OVP. The farmer's age, land ownership, economic status, and farmer association membership are the key factors influencing how much acreage farmers commit to OVP. In order to expand OVP adoption and the organic share of total cropland, strategies are needed to support farmer associations and encourage farmer participation.

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 Adoption of Mung Bean Variety in Ebinat District, Ethiopia

The mung bean crop is an essential legume crop among smallholder farmers because of its benefits like income generation, foreign currency earnings, supplies for local industries, and rural employment. The study intended to find determinants of the adoption of the mung bean variety in the Ebinat District. A multipurpose random sampling technique was used, and 150 smallholder farmers were chosen randomly to collect primary and secondary data. Both econometrics modelling and descriptive statistics were employed to analyse the data. A double hurdle model was used. It showed that, respectively, 46% and 54% existed adopters and non-adopters of mung beans. Model outcomes indicated that total livestock holdings, training, participation in demonstration sites, sex, and access to market information influenced mung bean cultivars. Additionally, the government, non-governmental organizations, and stakeholders should focus on strengthening participation in demonstration sites and training, encouraging, and improving the extension system, and increasing access to farmer's market information

Review of Tobit, Heckman and double hurdle econometric models: supported with evidences from the studies conducted in Ethiopia

Review of Tobit, Heckman and double hurdle econometric models: supported with evidences from the studies conducted in Ethiopia

DETERMINANTS OF PARTICIPATION IN INNOVATION PLATFORMS AND ITS SUSTAINABILITY: A CASE STUDY OF SUB-SAHARAN AFRICA

<p><strong>Background.</strong> Innovation platforms (IP) are a set-up where a group of stakeholders that are somewhat interdependent are identified and invited to get together and interact in a forum for social learning. However, Sub-Saharan African researchers have recently paid very little attention to its participation. <strong>Objective.</strong> To investigate the determinants of participation in IPs and its sustainability. The study specifically outlines the socioeconomic characteristics of the farmers and identifies variables influencing farmers' participation in IPs and the sustainability of such IPs. <strong>Methodology.</strong> The study used a multistage sampling technique to collect its data. The data were analyzed using the Double hurdle count model. <strong>Results.</strong> The results of the first hurdle indicate that the decision to participate in IPs is significantly influenced by factors such as gender, age, household size, years of farming experience, number of female working-class members, young dependents, aged dependents, access to agricultural extension, and asset ownership. While the findings of the second hurdle model reveal that gender, age, marital status, years of schooling, the number of female members of the working class, the number of young dependents, the number of aged dependents, access to extension services, and asset ownership play a significant role in determining the sustainability of participation in IPs. <strong>Implications.</strong> The paper adds evidence for a better understanding of the determinants of participation in IPs and its sustainability<strong>. Conclusions. </strong>Based on these findings, it is recommended that institutional structures and programs that enhance farmers' education, the frequency of extension contacts, and farm income be implemented to sustain participation in IPs.</p><div id="gtx-trans" style="position: absolute; left: 204px; top: 88px;"> </div>

Market participation of smallholder groundnut farmers in Northern Ghana: Generalised double-hurdle model approach

Market participation is both a cause and a consequence of economic development. Markets offer households the opportunity to specialize according to comparative advantage and thereby enjoy welfare gains from trade. The current literature on product marketing in Ghana is inadequate for designing and implementing effective policies to overcome problems in the marketing system, especially leguminous crops. Based on this, the study analyses the determinants of groundnut farmers’ decision to participate and the level of market participation in Northern Ghana using cross-sectional data from 250 smallholder farmers. We employed the generalized double hurdle model to analyse the objectives of this study. On average, the study found that 62% of groundnut output harvested by farm households in Northern Ghana was sold on the market. The most significant determinants of market participation decision and intensity of participation in the groundnut market include extension service, distance to output market, farmer-based organization, off-farm income, output price, use of improved groundnut variety, and access to transport. We recommend that strategies and policies aiming at promoting smallholder commercialization should focus on providing rural infrastructure, market-oriented extension services, and forming farmer groups for collective marketing.

Monetary valuation of COVID-19 informal care: caregivers’ willingness to pay and willingness to accept

BackgroundInformal care can reduce hospitalization frequency and time, elevate bed turnover, and increase the health systems' capacity. This type of care has shown meaningful value in managing many cases through the COVID-19 pandemic. The present study aimed to identify determinants of monetary valuation of informal care and the burden of this care on the COVID-19 patients’ caregivers.MethodsThrough a cross-sectional phone survey from June to September 2021 in Sanandaj city, the west of Iran, COVID-19 patients and their caregivers (Each Group No. 425) were separately interviewed. A simple probabilistic sampling method was applied. Two questionnaires were developed and used after validation. Monetary valuation of informal caregivers was done using Willingness to pay (WTP) and willingness to accept (WTA). Double hurdle regressions were used to determine related variables to WTP/WTA. R software was used for the data analysis.ResultsThe total mean (Standard Deviation) of WTP and WTA were $12.02(28.73), $10.30(15.43) USD. Most respondents put a zero value on informal care by WTA (243(57.18%) and WTP [263 (61.88%)]. Caregivers’ Employment, and being spouse/child of the care recipient increased the probability of reporting a positive value for WTP (p-value < 0.0001, p-value = 0.011 respectively) and WTA (p-value = 0.004, p-value < 0.0001 respectively). An increase in the number of caring days decreased the probability of reporting positive WTA (p-value = 0.001) and increased the mean of lnWTP (p-value = 0.044). Perceived difficulty in doing indoor activities and perceived difficulty in doing outdoor activities decreased lnWTA mean (p-value = 0.002) and lnWTP mean (p-value = 0.043) respectively.ConclusionsIncreasing caregivers’ self-efficacy and facilitating their involvement in the caring process could be facilitated through flexible work status, educational programs, and interventions on decreasing their burnout.

Do farmers pay for climate-resilient technology? Evidence from bidding experiments in eastern India

Using an experimental auction, we estimate demand for stress-tolerant rice varieties (STRVs) in eastern India, where frequent covariate production risks are affecting the welfare of smallholder farmers. STRVs have the potential to cope with low- to medium-intensity abiotic stresses and stabilize rice productivity in stress-prone rice ecosystems. The experiment involves a series of farmers’ decision-makings in the context of STRV seed purchase, set in an environment with minimal social frictions and improved information availability. Survival analysis, double hurdle, and sequential logit models are employed to understand farmers’ bidding and buying behavior. The results indicate that the demand for STRVs is highly elastic and is in line with reported market behavior. Willingness to pay (WTP) estimates for initial and latent buyers are coinciding, we find evidence of strategic underbidding by latent buyers in the experiment. Information asymmetry resulting from lack of awareness and previous experience in using STRVs is found to be the major reason for such decisions. Given the high elasticity of demand, STRV seed market distortion through subsidy, price cue, and an information campaign on variety characteristics and benefits could be an effective policy mix for overcoming the constraints related to price and asymmetric information and thereby increase adoption.

Factors Affecting Market Participation Decision and Intensity of Participation of Cow Milk Producers in Gemechis District, Ethiopia

Cow milk is a daily produced high value product that plays a significant role for both home consumption and income generating. However, in the selling of raw milk marketed supply, the producers do not attain potential gains. Thus, this study attempted to identifying factors affecting farmers’ decision to participate and determinants of the level of cow milk marketable surplus supply in Gemechis district. Both primary and secondary sources were used to collect data. Data were collected from a sample of 152 cow milk producers were analyzed through STATA ver. 15. Double hurdle model was applied. The first-hurdle model estimation result demonstrated that education level, distance to district market, the proportion of land allocated for forage production, size of milk output per day, access to milk market information, and frequency of extension contact influences farmers’ decision to participate in cow milk market. The second-hurdle model results investigated that children under six years, the proportion of land allocated for forage production, size of milk output per day and access to credit were significantly affects the level of cow milk marketable surplus supply. Therefore, the study recommends that emphasis should have to give on encouraging flow of milk market information, intensification of land use, and enabling farmers as they produce more through improving production and productivity of cow. Keywords: Cow milk, Double hurdle, Gemechis district DOI: 10.7176/JMCR/89-02 Publication date: April 30 th 2023

Determinants of Child Labour in Senegal: an analysis using the Double Hurdle model

Determinants of Child Labour in Senegal: an analysis using the Double Hurdle model

Türkiye’de Ev Dışı Gıda Harcamalarının Kohort Analizi

In this study, the expenditures of food away from home of households are examined using the Household Consumption Expenditure Survey, which was conducted by the Turkish Institute of Statistics from 2002 to 2018. We adopt the Dependent Double Hurdle model with the incorporation of age, period, and cohort effects and the impact of socio-demographic variables. Analysis results reveal that the cohort and age effects are significant in both participation and consumption on food expenditure away from home of household. The findings suggest that the expenditure of food away from home for younger cohorts rises faster for older cohorts. The elasticity of food expenditures for cohorts and age groups is increasing from the youngest cohort and from the youngest age group to the oldest cohort which is the largest age group. The results show that participation and consumption decisions are significantly affected by income and demographic characteristics in Turkey.

Investment decision and level of investment in marketing of value-added products of yam and cassava in Benue State, Nigeria

The supply gap of value-added products of yam and cassava in Nigeria has continued to widen and modeling investment in marketing of these products using Double Hurdle model is non-existence in literature. The study thus investigated factors influencing investment decision and level of investment in the marketing of valueadded products of yam and cassava in Benue State, Nigeria, using Double Hurdle model. Data were collected through structured questionnaire from 300 marketers of value-added products of yam and cassava, selected via multi-stage random sampling technique. The collected data were analyzed using descriptive statistics and Double Hurdle model. The results revealed that marketers of these products in the study area were mostly married females with moderate household size, literate, young, non-member of cooperatives, experienced, and had access to credit with akpu/fufu as the most marketed product among the marketers. Estimates of the Double Hurdle model revealed that sex, marital status, age, and membership of cooperatives were the factors influencing investment decision in the marketing of these products while sex, marital status, level of education, age, membership of cooperatives, return, and credit received were the factors influencing level of investment in the marketing of these products. In identifying factors that significantly influence investment decision and level of investment in the marketing of these products, this study provides an empirical contribution to the existing literature. It was recommended that policies geared towards increasing the level of investment in the marketing of these products should take into consideration the socio-economic characteristics of the marketers.

Welfare effect of improved wheat adoption in Tigrai, Ethiopia: A panel data evidence

Technological change in agriculture in land-scarce developing countries is required for land use intensification to feed the growing population. The purpose of this study is to analyze factors affecting adoption decision of improved wheat variety and its effect on households’ welfare in a semi-arid economy of Tigrai, northern Ethiopia. First, a correlated random effect double hurdle model with a control function approach is used to analyze determinants of improved wheat adoption decision and extent of adoption. Second, fixed effect instrumental variable method is used to assess the impact of area under improved wheat cultivation on households’ welfare. Double hurdle model results indicate that access to improved wheat, landholding, male adult and access to information have strong and positive effect on adoption decision and extent of adoption of improved wheat. The impact analysis shows that extent of improved wheat adoption has strong and positive effect on households’ income, consumption, and food security. Moreover, the gender and wealth disaggregation analysis show that extent of improved wheat adoption has a positive and significant effect on welfare of male and female-headed, land poor and land rich households. Thus, adoption of improved wheat is a pro-poor strategy and increasing access to the technology appears a promising pathway for rural development in a land scarce and semi-arid economy like Ethiopia.

How does who-you-sell-to affect your extent of market participation? evidence from smallholder maize farmers in Northern Ghana

This study examines the effect of marketing channel choice on the extent of market participation, with the goal of helping farm managers and policymakers to identify ways of enhancing market participation outcomes. The study uses data from 383 smallholder maize farmers who were part of the respondents to the Agriculture Production Survey conducted in 2014 and the Population-Based Survey conducted in 2012 in Northern Ghana. Econometric analysis was performed using the double hurdle model to account for data censoring in a more flexible way. Findings indicate that smallholder farmers in Ghana sell larger maize quantities when they sell to aggregators than when they sell directly to consumers. By changing from selling to consumers to selling to aggregators, farmers can increase the amount of maize sold by 128.46 kg conditional on participation and by 43.41 kg unconditional on participation. This is potentially due to the scale advantages and non-pecuniary cost savings that aggregators present. The results imply that facilitating access to aggregator-type middlemen may improve market participation in markets where market infrastructure and institutions are not developed enough to substantially lower pecuniary and non-pecuniary marketing costs of selling directly to consumers.

Status and determinants of saving behavior and intensity in pastoral and agro-pastoral communities of Afar regional state, Ethiopia.

Saving is a crucial tool for enhancing the livelihoods of pastoral and agro-pastoral communities, but due to a number of factors, its status and intensity are still in their infancy. Because of this, the current state of saving practices, their causes, and the size of pastoral and agro-pastoral communities are all examined in this study. A multi-stage sampling process was used to determine the 600 typical selected households. In order to assess the data, a double hurdle model was used. From the descriptive analysis result, only 35% of pastoral and agro-pastoral groups were savers. In comparison to their counterparts, households who have access to credit, are financially literate, engage in non-farm activities, cultivate crops in addition to livestock husbandry, use informal financial institutions, are educated, and wealthier are more likely to be savers and eager to save a larger amount of property. Households with more livestock and who live far away from formal financial institutions, on the other hand, are less likely to be savers and save only a small fraction of their income. Male-headed families are more likely to participate in saving decisions, whereas female-headed households must save more than their male counterparts once they have opted to save. Instead of relying on ineffective monetary policy (changing interest rates), any concerned bodies should emphasize mixed farming practices, establish financial institutions nearby to improve saving habits, provide non-farm training, and empower women in order to close the gap between savers and non-savers and mobilize resources to save and invest. Furthermore, raise awareness of financial institutions' products and services, as well as provide credit.

Farm Household Access to Agricultural Credit in Sagnarigu Municipal of Northern Ghana: Application of Cragg’s Double Hurdle Model

Agricultural credit plays a crucial role in enabling smallholder farmers to increase farm output and reduce rural poverty. Despite this, access to credit remains a challenge to many smallholders. This study thus used cross-sectional data and Cragg’s double-hurdle model to assess the factors affecting farm credit access and the determinants of loan size in the Sagnarigu municipal of northern Ghana. The study found that institutional factors played a significant role in the amounts borrowed. Furthermore, household characteristics had little influence on credit access, whereas farm characteristics played a major role in credit accessibility and loan size. These factors should be considered in designing credit policies for smallholder farmers.

The role of social capital in addressing seed access constraints and adoption intensity: Evidence from Arsi Highland, Oromia Region, Ethiopia

In Ethiopia, limited empirical studies exist on how seed supply access constraints condition adoption intensity (demand). Hence, this research employs the augmented Double hurdle model to incorporate the effect of seed access (local supply) constraints in conditioning demand. Moreover, nine factors were constructed of twenty-eight indicators using Principal Components Analysis to resolve which cognitive and structural indicators drive social capital at the farm household level. The Double hurdle result reveals that social capital indeed determines wheat varieties access; besides, different forms of social capital have dissimilar effects on varieties demand. In addition to social capital variables (such as getting well with other farmers, generalized trust, and trust in agricultural institutions), information on seed access, training on varieties selection, and education have significant positive effects on relaxing seed access constraints and demand. Hence, the result suggests that agricultural policy and extension efforts should consider not only human, and physical capital, but also social capital in relaxing seed access constraints and demand. Furthermore, the government of Ethiopia should develop strong regulatory mechanisms to reduce corruption in the seed supply system.

Factors affecting farmers' adoption of and willingness to pay for biodegradable mulch films in China

The technology of biodegradable mulch films (BDMs) is an environmentally-friendly substitute for polyethylene (PE) mulches in agricultural production. Given the technology is new to the market, it is not easy for farmers to adopt it. Additionally, farmers’ decision on BDMs adoption is a multiple-stage process. To understand the decision process, this paper employs a double hurdle model to explore the factors affecting farmers’ adoption and willingness to pay for BDMs using the sample data from China. The results show farmers follow a two-stage decision-making process, farmers have to overcome the first hurdle, i.e., adoption or non-adoption, and then decide how much they are willing to pay for BDMs. The role of technology-specific characteristics is more important than adopter-specific characteristics in the adoption of BDMs. Understanding the impact of factors on farmers’ decision-making process can assist policymakers in designing programs, specifically tackling difficulties confronting farmers at different stages of decision-making.