Endogenous Switching Regression Model Research Articles

The role of agricultural mechanization services in reducing pesticide input: promoting sustainable agriculture and public health.

An increasing amount of pesticide input is posing a serious threat to the environment and public health. However, the quantitative analysis of the impact of agricultural mechanization services (AMS) on reducing pesticide input is not yet clear. In this study, the impact of AMS on pesticide input was estimated by using the Chinese Family Database and the endogenous switching regression model. Subsequently, testing the robustness of the model using the substitution variable method. The impact of AMS on different types of pesticides and the influence of farmers' choices of AMS on pesticide input under different terrain conditions and farm sizes were analyzed as well. The results demonstrate that AMS has a significant and negative impact on pesticide input, reducing pesticide expenditures by 56.08% for farmers who adopt AMS. For farmers who do not adopt AMS, adopting such services is assumed to reduce pesticide input by 14.97%. AMS can also reduce the use of insecticides and herbicides by over 54%. Compared to mountainous and hilly areas, AMS in plain areas increase the effectiveness of pesticide input reduction by 30.40%. Furthermore, small-scale farmers who adopt AMS can increase pesticide input reduction by 90 yuan/mu compared with large-scale farmers. Therefore, promoting the development of socialized AMS, strengthening AMS in mountainous and hilly areas, and expanding the scale of operation for small-scale farmers can help improve the effectiveness of pesticide input reduction. The results of this study can inform the development of strategies to reduce chemical pesticide use in agricultural soil.

Effectiveness of Smallholder Farmers adaptation to climate extremes: Evidence from the Southern Province of Zambia

Climate extreme is one of Zambia's most pressing issues impacting socio-economic development. This paper assessed the impact of adaptation to climate extremes, as well as the effectiveness of adaptation strategies to mitigate the negative impact on food production. A total of 270 smallholder farmers were sampled. Descriptive analysis, and, the endogenous switching regression model were applied. According to the study's findings, adaptors and non-adaptors have a number of different characteristics. Furthermore, based on the estimates of the endogenous switching regression model, radio ownership, seed quantity and farming experience, had a positive relationship with adaptation. Also, the results showed that adaptors are ‘better producers’ than the non-adaptors. In light of the findings, some policy recommendations were made. When drafting policies (a) it is necessary to draw on the expertise and experience of farmers and local institutions, (b) consider the assets of the farmers and (c) enhance farmers’ access to more affordable agricultural inputs.

Artisanal small-scale mining, farm labour attraction and household welfare in Ghana

The discourse on the impact of artisanal small-scale mining (ASM) has often concentrated on land degradation, and surface water pollution. How ASM is increasingly attracting farm labourers (FL) in mining communities is rarely discussed. Drawing insight from selected mining communities, which combines the perspectives and experiences of small-scale miners, farmers, academics, and policymakers, this article uses the endogenous switching regression model to identify the determinants of FL attraction to ASM as well as the drivers of labour welfare. The model estimated the impact of labour supply on consumption expenditure per adult equivalent. The results show that FL decision to shift to ASM sector is constructed around welfare incentives. For instance, FL who joined ASM increased their consumption expenditure per adult equivalent by 66.6 percent. The article established that ASM provides crucial livelihoods to rural households. Meanwhile, if proper incentives such as fertilizer subsidy and agriculture extension intensification are not put in place, the labour attraction by ASM will have detrimental effects on food security. Therefore, proper regulatory frameworks should be enforced by duty-bearers to regulate the activities of ASM as it provides welfare improvements to farmers. Lastly, further studies should investigate the decency of labour supply services to ASM.

Do Green Production Technologies Improve Household Income? Evidence from Rice Farmers in China

Revealing the behavioral decision-making mechanism and behavioral effects of farmers adopting green production technologies will help motivate farmers to actively adopt green production technologies, thereby promoting the development of green agriculture. A stratified random sampling technique was used to select 607 Chinese rice farmers, while the endogenous switching regression model was used to analyze the influencing factors and behavioral effects of farmers adopting green production technologies. The results show that the adoption of green production technologies by farmers can significantly increase household income. Among the green production technologies, soil testing and formula fertilization technology has the greatest impact on farmers’ income, followed by straw returning technology and planting green manure. The main influencing factors of farmers adopting green production technologies are education level, cultivated land area, cultivated land fragmentation, soil fertility, and the distance between home and agricultural technology stations. The results of this study provide an empirical basis for relevant government departments to carry out agricultural technology extension work and formulate relevant policies.

Adoption and impact of improved teff varieties adoption on food security: Micro level evidence from North Eastern Amhara Regional state, Ethiopia.

This study investigates the adoption and impact of improved teff varieties (ITVs) on food security in North Eastern Amhara Region, Ethiopia. The result of binary probit model shows that the adoption decision of improved teff varieties is determined by total family size measured in adult equivalent, off-farm income, number of traders known by farmers, variety information from development agents and research center affects positively and distance of farmer's residence from kebele office of agriculture negatively Endogenous switching regression (ESR)model was employed to evaluate the impacts of adoption of improved teff varieties on food security. The output from ESR asserted that had the adopter households decided not to adopt, their average daily calorie intake and annual food consumption expenditure per adult equivalent would have decreased by 417.908 kilocalorie and 1096.509 Ethiopian Birr(37.8.41 dollars) respectively. Thus, policies and development endeavors targeting to realize food security should facilitate the adoption of ITVs.

Sustaining resource-oriented sanitation behaviors through informal institutions: Evidence from China

Promoting safe sanitation behaviors is crucial to public health and resource recovery. Previous studies have shown that mandatory formal institutions can contribute to behavioral changes for safe sanitation, however, the impacts of informal institutions remain less explored. This study focuses on the “Red and Black List”, a typical informal institution in China's ongoing Rural Toilet Revolution, which is built on an emerging social credit system in rural China that punishes negative behaviors using blacklists while rewards positive behaviors using redlists. Based on the survey data of 1820 rural households, this study uses the endogenous switching regression (ESR) model to quantify the impact of the “Red and Black List” on household sanitation behaviors (hygiene management, toilet maintenance and effluents recycling). The results show that households in the villages adopting the “Red and Black List” are 11.63%, 20.89% and 29.35% more likely to perform well in hygiene management, toilet maintenance and effluents recycling respectively. Such treatment effects are greater in the villages adopting the “Red and Black List” with material rewards. Moreover, the implementation of the “Red and Black List” significantly increases regular monitoring activities, professional codes provision and households' emotional affinity through which informal institutions could possibly promote desirable sanitation behaviors. Based on these findings, the policy recommendation is that informal institutions on sanitation should be established in local governments to contribute to the success of sanitation campaigns.

Does Solar-Powered Irrigation System Usage Increase the Technical Efficiency of Crop Production? New Insights from Rural Areas

Fossil fuel and electricity-powered irrigation techniques boost the water availability expense and increase greenhouse gas emissions. Especially in developing countries, solar-powered irrigation is becoming more popular as a response to the growing energy and environmental issues associated with agriculture systems. The existing study used data from 1080 wheat farmers in Balochistan, Pakistan, to investigate the impact of solar-powered irrigation system (SPIS) usage on the technical efficiency (TE) of wheat production. The TE of wheat production is estimated using a stochastic frontier production function, and the potential self-selectivity bias is addressed using an endogenous switching regression model. The findings indicated that 13.7% of the wheat cultivators assessed used SPISs to produce their crops. Using an endogenous switching regression model shows that SPIS usage increases the TE of wheat growers by 6.657%, after controlling for self-selection bias. While using SPISs, wheat farmers with large farms and farming familiarity had stronger positive effects on TE. The results highlight the need for more investigation and research into evidence-based good practice for SPIS solutions at the site level to ensure that the rollout of modern equipment not only drives the energy sector forward but also contributes significantly to our level playing field and sustainable environment.

Composite effect of adaptation to climate variability, agrometeorological information, and socioeconomic and institutional factors on agricultural productivity in Kenya

Climate variability has adversely affected agriculture and adaptation strategies are significant in enhancing resilience hence ensuring food security. Agrometeorological services are essential in decision-making and developing farmers’ specific adaptive capacities mainly when variability affect agricultural productivity. This study focuses on the composite effect of adaptation to climate variability, agrometeorological information, socioeconomic and institutional factors on agricultural productivity in Kenya. Multi-stage sampling technique was used to obtain a sample size of 384 sorghum farmers. The study used an endogenous switching regression model to control for the selection problem arising from adaptation to climate variability on agricultural productivity. Results indicate that extension contacts and education level were positively significant among adapters of climate variability. Additionally, the proportion of income allocated for farming was positively significant among non-adapters. On the other hand, access to credit, gender and age of decision makers were negatively significant among adapters of climate variability. Similarly, age was negatively significant among non-adapters of climate variability. Overall, adapters to climate variability had higher sorghum output than non-adapters. This study recommends that policymakers and other key stakeholders could increase the number of extension contacts and promote education to farmers so that they can access agrometeorological information, hence adaptation to climate variability.

Do geohazards inhibit urban expansion at the regional scale? Evidence from a counterfactual analysis in Southwest China

The inhibiting effect of geohazards on urban expansion has been demonstrated at the site or local scale. At the regional scale, the more ambiguous relationship between urban development and geohazards is attributed to the complexity and adaptability of cities. Therefore, this study focussed on Southwest China because it has the largest number and greatest frequency of geohazards. The cloud model was applied to evaluate the geohazard susceptibility of the research area. Next, a novel econometric model—the endogenous switching regression model (ESRM)—was introduced to conduct a counterfactual analysis. The empirical results passed the robustness test and showed that the proportion of high-susceptibility areas in the study area was 30.4 %. Importantly, the change from low susceptibility to high susceptibility will reduce the expansion intensity by 1.62 %. In contrast, the expansion intensity will increase by 25.9 % if a high-susceptibility area turns into a low-susceptibility area. Nevertheless, geohazards still inhibit urban expansion at the regional scale. Finally, based on the concept of urban resilience, proposals are made to minimize the risk of hazard exposure through various adaptive paths in the post-pandemic era, thereby creating a resilient city that is better suited for urban development.

Ecological shocks and children’s school attendance and farm work in Ghana

Accelerating the education of children and reducing child labor in agriculture remains an important development pathway to preventing intergenerational poverty and achieving the sustainable development goals. While several studies have analyzed the impact of ecological stressors on yield, income, and food security, there is limited understanding of the linkages of prevailing ecological shocks to child education and farm work. In this paper, we examine the effect of ecological shocks of pest and weed invasion on children’s school attendance and working hours on the farm using the seventh round of the Ghana Living Standards Survey (GLSS). We employ a multinomial endogenous switching regression (MESR) model that corrects for selection bias and endogeneity originating from both observed and unobserved heterogeneity. The results show that double shocks (pests and weeds) reduced the number of children attending school by 11% and increased children’s on-farm working hours by 0.75 h. Comparatively, the decline in the number of children attending school due to weed invasion (0.88) is higher than the decline due to pest invasion (0.43). Furthermore, weed invasion increases children’s on-farm working hours by 0.05 h while pest invasion reduces children’s on-farm working hours by 0.08 h. Increasing access to improved agricultural technologies bundled with credit and policies are critical to reducing the threats from ecological shocks and improving farmers’ welfare. To avert the decline in school attendance and children’s working hours requires training farmers to reduce the practice of continuous cropping and to embrace crop rotation and fallow to reduce the spread of pests and weeds.

Impact of financial inclusion on household welfare in Ethiopia

Despite the overwhelming consensus on the positive effect of financial inclusion on economic outcomes, there is limited rigorous micro-econometric evidence on the causal impact of financial inclusion on household welfare in Ethiopia. This study uses the 2018 Ethiopian Socioeconomic Survey data and an endogenous switching regression model to investigate the determinants and the causal impact of financial inclusion on multiple measures of household welfare. The results suggest that households headed by older, more educated, wage or self-employed people in the non-agricultural sector are more likely to access financial services, as are those headed by non-Muslims. In addition, greater financial access appears to be associated with membership in a local social group (iddir), ownership of mobile phones, credit information, and knowledge of how to open bank accounts, but negatively associated with the distance from the household’s residence to the nearest formal financial institution. This study further indicates that financial inclusion has a positive and statistically significant impact on multiple household welfare indicators. The most considerable impact of access to formal financial institutions is on utility spending, followed by total expenditure, food expenditure, and education spending. These findings thus suggest that policies geared toward improving household access to formal financial institutions are essential to enhance household welfare in Ethiopia.

Public Agricultural Extension, Pest and Disease Experience, and Adoption of Improved Wheat Varieties

Improved varieties are considered critical for increasing crop yields worldwide. This study explored the effects of public agricultural extension and pest and disease experience on adoption of improved varieties using survey data on 525 wheat farmers in Anhui Province, China, to which the Heckman sample selection model was applied. The results showed that public agricultural extension had a significant positive relationship with adoption of improved varieties. Demonstration and training, as different forms of agricultural extension, both increased the probability of farmers adopting improved varieties, but only demonstration had a marked effect on degree of adoption. Pest and disease experience increased the probability of adoption of improved varieties by farmers and significantly enhanced the effect of public agricultural extension, but did not affect degree of adoption. Further analysis using an endogenous switching regression model revealed that adoption of improved varieties raised wheat yields by around 337.83 kg/ha. Public agricultural extension should thus be strengthened, especially for farmers with pest and disease experience, and a diversified, well-functioning agricultural extension system should be provided.

Impact of Farmer Producer Organizations on Price and Poverty Alleviation of Smallholder Dry Chillies Farmers in India

This study investigates the impact of Farmer Producer Organizations (FPOs) on smallholder dry chilli farmers in Guntur district, Andhra Pradesh, with a focus on price realization and poverty alleviation. Two specific FPOs, Red Chilli Farmer Producer Organisation and Spoorthi Chilli Producers Company Ltd., from the Guntur district of Andhra Pradesh were chosen for the study based on their substantial business turnover and comprehensive backward and forward linkages to their farmer-members. The smallholder farmers were stratified into two groups viz., treated (161) and untreated (n = 315) based on the FPO membership criterion. The Foster-Greer-Thorbecke model revealed that the poverty incidence among untreated farmers was recorded at 0.691, which was approximately 49 percent higher than the poverty incidence of treated farmers (0.352). The depth and severity of poverty were also greater among untreated farmers, with a poverty depth of 0.494 compared to the lower value of 0.126 observed among treated farmers. The results from Endogenous Switching Regression Model revealed a significant positive relationship between FPO membership and both price realization and poverty alleviation. Farmers with FPO membership experienced 2.11 percent higher prices and 39.14 percent higher annual agricultural income compared to untreated. Factors such as education, adherence to Good Agricultural Practices, farm experience, access to improved inputs, and credit significantly influenced FPO membership. The study concludes that FPO membership plays a crucial role in improving the standard of living for smallholder dry chilli farmers by increasing prices and income. So, this research sheds light on the significance of FPOs in enhancing the economic well-being of smallholder dry chilli farmers in Andhra Pradesh.

Impact of compliance with European Union (EU) regulations on the income of actors along the cocoa supply chain in Osun state, Nigeria

Compliance with EU regulations has received a lot of attention, but, its impact on the welfare of actors along the cocoa supply chain has been left unexplored. The study investigated the impact of compliance with EU regulations on the income of actors along the cocoa supply chain. A multi-stage sampling technique was employed to select 200 cocoa farmers, 50 produce-buyers, 50 agrochemical sellers, and 10 exporters for the study. Primary and secondary data were analyzed using the Difference in Difference (DiD), Endogenous Switching Regression Model (ESRM), and T-test. The descriptive results showed that EU regulations have changed the pattern and direction of the cocoa beans trade in such a way that after the implementation of the EU regulations. The ESRM showed that the determinants of the decision to comply with EU regulations were mainly access to extension agents and membership in an association. The causal effect of complying with EU regulations resulted in a 61.43% increase in the gross income of the farmers. The t-test analysis for produce buyers and agrochemical sellers revealed that EU regulations had no significant impact on the income of compliance. DiD indicated that EU regulation had a 1% significant impact on the value of cocoa export. The study, therefore, concluded that compliance with EU regulations on cocoa had a positive impact on the income of cocoa farmers and exporters in the study area. In line with the findings of the study, it is recommended that policies and programs that would enhance adequate and timely information systems be put in place. There should be more access to extension services which will help to increase the extent to which actors comply with EU regulations for good-quality cocoa beans.

Does cooperative membership stabilize farm income volatility? Evidence from the pig sector in China

PurposeFarm income in the agricultural sector is susceptible to natural and market risks. A large body of literature has studied the effects of cooperative membership on household welfare, technical efficiency, productivity and production behavior, yet little has been known about the impact of cooperative membership on farm income volatility. This paper aims to fill this research gap by investigating the relationship between cooperative membership and farm income volatility of Chinese pig farmers and drawing policy implications.Design/methodology/approachThis paper examines the effect of cooperative membership on farm income volatility, using data from a two-round survey of pig farmers in China. The authors employ an endogenous switching regression model to address the selection bias issues associated with unobserved factors simultaneously affecting farmers' participation in agricultural cooperatives and income earning activities.FindingsUsing household panel from a two-round survey of 193 pig farmers in China, this analysis highlights two key findings: (1) agricultural cooperative membership has significant and positive effect on farm income stability and (2) the impact of cooperative membership on farm income stability varies with production scale.Originality/valueThis research makes two contributions to the literature. First, this study contributes to the scant literature exploring the relationship between agricultural cooperatives and farm income stability. Second, to the best of the authors' knowledge, this is the first study that explores such relationship in a livestock sector. The pig sector in China and around the developing world has been increasingly challenged by multifaceted risks (e.g. price fluctuations, epidemic diseases, environmental regulations), and understanding the role of agricultural cooperatives in farm income stability of pig farmers is of great practical and policy significance.

Warehouse receipt system: A shift to improve maize marketing in Ghana

The study assessed the influence of warehouse receipt system (WRS) on market access using 400 smallholder maize farmers from six communities in the Northern Region of Ghana. Primary data were collected through the use of an open-ended questionnaire. The endogenous switching regression model and propensity score matching was employed for data analysis. The results showed that participation in the WRS was mostly influenced by loan accessibility, size of crop output, established buyers, and membership in farmer organizations. The implications of the results are discussed. The paper concludes that the sustainability of farmer participation in WRS lies in strengthening farmer organizations and access to high-end markets through forming trust relationships with buyers.

Irrigation technology adaptation for a sustainable agriculture: A panel endogenous switching analysis on the Italian farmland productivity

Efficient water management in agricultural activities can improve local water resource conditions while enhancing farms’ economic performance. This paper analyses how farmers’ decisions to adopt innovative and sustainable irrigation systems, such as Water Conservation and Saving Technologies (WCSTs), would shape Italian farms’ economic resilience by improving land productivity. Using a Panel Endogenous Switching Regression Model, our results confirm that the WCST adoption is an endogenous and self-selective process and land value is endogenously determined. Seasonal aridity indices are important factors in the choice of WCST adoption, with different effects on non-adopters and adopters. Farmers who adopt WCSTs are more productive than those who do not.

Exploring the ecological protection impacts of cultivated land transfer: Explanation based on fertilizers and pesticides

The ecological protection of cultivated land (EPCL) is of great significance for enhancing its sustainable use and is also a practical material vehicle for maintaining national food security. Using data from a sample of 7,473 rural households from the 2015 China Household Finance Survey, this paper applies an endogenous switching regression model and Fields decomposition method to assess the impact of cultivated land transfer (CLT) on EPCL (i.e., fertilizer and pesticide input intensity, abbreviations is FPII). The empirical results show that farmers' participation in CLT can significantly reduce FPII. When it is assumed that households not participating in CLT participate in CLT, their FPII would be reduced by 52.39% and 17.56% respectively. The study further confirms that CLT has a positive effect on EPCL, contributing 5.74% and 7.47% to the reduction of FPII, respectively. In addition, agricultural subsidies, cultivated land titling, the size of cultivated land, the use of large-scale machinery, pollution of cultivated land, and farm income all positively affect farming households’ participation in CLT. Therefore, based on CLT, promoting large-scale and mechanized cultivated land management and deepening EPCL with the goal of reducing fertilizer and pesticide use are important approaches for enhancing the sustainable use of cultivated land.

Farmland Transfer and Income Distribution Effect of Heterogeneous Farmers with Livelihood Capital: Evidence from CFPS

Farmland transfer is a crucial aspect of modernizing China’s agriculture, which has a significant impact on farmers’ income distribution. With rapid urbanization, farmers’ livelihood has changed significantly, and the income effects of farmland transfer will differ among heterogeneous farmers. Based on the China Family Panel Studies (CFPS) data, this study examines the impact of farmland transfer on farmers’ income growth and income disparity, as well as the income differences in farmland transfer among farmers with different types of livelihood capital. An endogenous switching regression model and unconditional quantile treatment effects are used to correct the selection bias and farmer heterogeneity. The results show that (1) farmland transfer increases farmers’ income. Specifically, farmland transfer-in increases farmers’ income by 21.15%, while transfer-out increases it by 43.33%. (2) The impact of farmland transfer on farmers’ income has a “Matthew effect” and will widen the income gap between farmers. (3) Moreover, farmland transfer exhibits diverse income effects on heterogeneous farmers with livelihood capital. Capital-rich farmers experience the largest income-growth effect from farmland transfer-in, while capital-balanced farmers experience the largest income-growth effect from farmland transfer-out. The policy implications are to further improve the farmland transfer market and enable low-income farmers to participate by improving their qualifications and abilities.

Transcending Hukou Barriers Effectively Unleashes the Income-Raising Effect of Education: Based on an “Agricultural to Non-agricultural Hukou Conversion” Perspective

The relatively low rate of return to education has played an important role in explaining the urban-rural income disparity. However, rural residents have a high demand for education, and one significant reason is that education can help them break the restrictions of the household registration (hukou) system and obtain a higher income. Using data from the 2017 China Household Finance Survey (CHFS 2017), this study employs unconditional quantile regression to find that after reclassifying individuals who have experienced agricultural to non-agricultural hukou conversion back to the rural household registration category, the income-promotion effect on the rural population of completing high school and university education is significantly enhanced. The decomposition analysis using the recentered influence function (RIF) reveals that when considering the agricultural to non-agricultural hukou conversion group, the income disparity between urban and rural areas caused by education is noticeably alleviated. Furthermore, the endogenous switching regression model finds that individuals with agricultural hukou are generally less likely to work in formal institutions. Improving educational attainment helps increase the probability of their obtaining non-agricultural hukou and entering formal employment, resulting in higher income. Hence, policymakers should focus on improving the quality of rural education and reforming the household registration system to gradually eliminate the occupational segregation and income disparity caused by hukou barriers.