Endogenous Switching Regression Research Articles

Climate-Smart Agriculture as an Adaptation Measure to Climate Change in Togo: Determinants of Choices and Its Impact on Rural Households’ Food Security

Climate-smart agriculture is one of the most important actions for agricultural climate change adaptation, especially in Togo, a sub-Saharan African country with a fragile ecology and where agriculture is profoundly impacted by climate change. Using a multinomial endogenous switching regression (MESR) and a multinomial endogenous treatment effect (METE) approach, we conducted empirical research to identify the factors influencing the adoption decisions of climate-smart agricultural practices (CSAPs) and their impact on household food security among smallholder farmers in Togo. The findings of this study revealed that the adoption of CSAPs by farmers is influenced by a range of factors, such as age, marital status, the household head’s gender, engagement in off-farm activities, level of education, farm size, agroecological zone, regional location, land ownership, distance between homestead and farm, access to credit, the presence of agricultural associations and cooperatives, and access to extension agents. On the one hand, the MESR analysis demonstrated a positive correlation between the number of adopted CSAPs and households’ food consumption score. Similarly, greater adoption of CSAPs resulted in a significant reduction in the food insecurity experience scale. On the other hand, the METE model portrayed an increase in acceptable food consumption when households adopted up to three CSAPs. Likewise, it significantly alleviated severe food insecurity. Further results based on the propensity score matching technique showed that the adoption of a crop rotation system, utilization of improved varieties of seeds, plant protection products, inorganic fertilizer, organic fertilizer, and irrigation improved adopters’ food consumption scores while reducing their level of food insecurity.

Impact of cluster farming on wheat productivity and net benefit among smallholder farmers in Lemu-Bilbilo and Hetosa districts of Arsi Zone, Ethiopia

This study focuses on identifying the determinants of cluster farming participation decisions and the impact of cluster farming on smallholder wheat farmer’s productivity in the two districts of Arsi Zone, Ethiopia. The study utilized cross-sectional data and a multistage sampling procedure to select a total of 381 respondents from the two districts of Arsi Zone, Ethiopia. The endogenous switching regression model was employed to achieve the research objectives. The study result indicates that sex of the household head, education level, size of cultivated land, access to training, membership in a farmer's cooperative, access to information and social responsibility of the household head influenced cluster farming participation positively and significantly, while distance from the nearest market had a negative and significant effect on cluster farming participation. Furthermore, the study shows that, if participants had decided not to practice cluster farming, their wheat yield and net benefit would have decreased by 33.57 and 40.08%, respectively. Similarly, had non-participants decided to participate, their wheat yield and net benefit would have increased by 46.79 and 102.49%, respectively. The study recommends that policymakers and development organizations should consider cluster farming as a main strategy to increase smallholder farmer’s productivity. Moreover, the study calls for government and institutional assistance in the areas of education services, training, extension services, infrastructure (particularly access to markets), and cooperative development. Moreover, policy and development measures should address the issue of gender disparities in cluster farming participation.

Adoption of organic soil fertility measures and their impact on farm outcomes: a case study of millet cultivators in India

This article investigated the economic impact of adopting organic soil fertility measures (OSFM) on millet farming outcomes in rainfed regions of rural India. Using survey data from 900 millet farmers, the analysis applied an endogenous switching regression model to correct for selection bias arising from both observable and unobservable factors. The results indicated that factors such as soil type, use of farmyard manure, crop diversification, gender of the household head, access to agricultural resources, proximity to residence and markets and education levels significantly influenced farmers’ adoption of OSFM. Notably, the adoption of OSFM had a positive and statistically significant impact on farm profits, with OSFM adopters gaining ₹5998 more than nonadopters. The average treatment effect on the treated for OSFM was 9.80% higher than for non-OSFM farmers. These findings reinforcing the importance of promoting OSFM practices in similar rainfed farming regions of the country.

Mobile money, food security and coping strategies in a post-conflict and fragile context: evidence from Burundi

PurposeAttaining the Sustainable Development Goal 2 (SDG2) of zero hunger continues to be a challenge in most parts of Sub-Saharan Africa. However, financial inclusion is seen as a potential pathway for reducing food insecurity among poor households. Mobile money is a financial inclusion instrument that is easily accessible to poor households and has the potential to increase the level of financial inclusion. This paper contributes to the literature by examining the determinants of mobile money adoption, its effects on household food security and the choice of coping strategies in Burundi, a post-conflict and fragile country.Design/methodology/approachUsing survey data that involved 860 households in Burundi, we adopted the Household Hunger Scale (HHS) developed under the Food and Nutrition Technical Assistance Project to measure household food security. We further employ the endogenous switching regression treatment effects model for ordered outcomes and the multivariate probit model to achieve our aims.FindingsThe results of our study reveal that the adoption of mobile money is influenced by factors such as gender, marital status, age, formal education, membership in a social network, area of residence and access to a tarred road network. Additionally, the food security status of a household was determined by marital status, formal education, social network membership, access to tarred roads, off-farm income, access to credit and land tenure security. We confirm that mobile money adoption has a significantly positive effect on the food security status of households with heterogeneity in gender and area of residence. We also find that mobile money adoption reduces the likelihood of households adopting consumption-related coping strategies.Practical implicationsThe promotion of mobile money should, therefore, be included in Burundi’s national food security policies.Originality/valueThis study contributes to the literature by providing empirical evidence on the effect of mobile money adoption on household food security and the choice of coping strategies in a post-conflict context.

Impact of integrated land management technology adoption on rural livelihoods in the Goyrie watershed, Southern Ethiopia: Endogenous switching regression modeling estimation

Impact of integrated land management technology adoption on rural livelihoods in the Goyrie watershed, Southern Ethiopia: Endogenous switching regression modeling estimation

Effects of unbalanced fertilizer use on system productivity and profitability under rice‐based cropping systems: Evidence from Eastern Gangetic Plain

AbstractUnbalanced nutrient supply is one of the key causes of yield gaps and low farming profitability which impact food insecurity globally. However, the effects of an unbalanced nutrient supply on rice yields and farming profitability have not been quantified for diverse rice‐based cropping systems. To explore the effects, 412 respondents (mostly smallholder farmers) were surveyed in 2019 for the rice crops in three fully rice‐based cropping systems in four agro‐ecological zones of Bangladesh. Two robust estimation approaches namely propensity score matching and endogenous switching regression approaches were used to quantify the effects of unbalanced fertilizer use. The results show that about 68% of farmers in the study areas used unbalanced (over‐doses or under‐doses) nutrient rates relative to government‐endorsed recommendations. Adoption of recommended fertilizer rates was influenced by education, amount of organic manure used, off‐farm income, crop farming‐related training, organizational membership and lack of soil testing tendency. The findings also indicate that adopters of recommended nutrient rates received almost 16% and 46% higher system rice yield and system net return, respectively, relative to non‐adopters. However, based on our research findings, formulation and implementation of effective agricultural policies like effective extension services, strengthening soil testing facilities, increasing organizational membership and targeted awareness programmes could motivate smallholder rice farmers towards adoption of recommended nutrient rates. Adoption of recommended fertilizer rates can significantly enhance crop yields and farming profitability which can boost food security and rural livelihoods in the Eastern Gangetic Plain.

Impact of behavioural intention to adopt climate-smart agricultural practices on the food and nutrition security of farming households: A microeconomic level evidence

The study examined the behavioural intention to adopt climate-smart agricultural practices (CSA) and its impact on the food-nutrition security (FNS) of farming households in South Africa. We employed a multistage sampling procedure to select rural maize farmers across the selected villages. To determine the impacts of behavioural adoption of CSA on the FNS of farming households, endogenous switching regression model (ESRM) was employed, while household dietary diversity score (HDDS) and household food insecurity access score (HFIAS) were used to determine the FNS status of the households. The findings emphasized the significance of the behavioural intentions of rural maize farmers, assessed through their attitudinal dimensions (measured in terms of perceived social norms, behavioural intentions, and control) in influencing the adoption decision of CSA practices, hence CSA adoption positively impacts FNS in South Africa. The result indicates that households that adopt CSA observe a 27% and 23% increase in HDDS and a decrease in HFIAS compared to those who do not adopt CSA practices, respectively. Thus, the outcome illustrates that the adoption of CSA practices substantially enhances the HDDS and HFIAS of rural maize farming households in South Africa. Following this backdrop, a concerted effort to raise knowledge of CSA practices through disseminating pertinent information will exert influence on the farmers' adoption behaviour towards CSA practices, which is capable of improving the FNS of rural maize farmers.

Impacts of alcohol consumption on farmers’ mental health: Insights from rural China

The global mental health crisis presents a significant challenge to sustainable development, and this crisis is more pronounced in China's rural areas versus urban areas. Alcohol consumption has increased in rural areas with China's economic growth, but the number of studies on the relationship between farmers' alcohol consumption and their mental health is limited. Based on data from the China Labor Force Dynamics Survey (CLDS), this study uses the endogenous switching regression model (ESR) to analyze the influence of alcohol consumption on farmers' mental health. On this basis, the study further conducts a counterfactual analysis to estimate the average treatment effect of alcohol consumption on farmers' mental health. The results show that: (1) There is a significant positive relationship between alcohol consumption and farmers' mental health. Specifically, the mental health index of drinking farmers increases by 19.7 % compared to non-drinking farmers. (2) Heterogeneity analysis shows that alcohol consumption is more beneficial for improving the mental health of male farmers, elderly farmers, and employed farmers. Furthermore, drinking alcohol almost every day, consuming Baijiu, and each drinking consumption ranging from 0 to 100 mL per occasion are more conducive to improving farmers' mental health. These findings have implications for relieving depressive symptomology and improving farmers' mental health in developing countries. The results of this study also provide guidance for addressing the global mental health crisis.

Can farmer organization membership improve household food security and nutrition? Evidence from Northern Ghana

AbstractWe examine the impact of farmer organization (FO) membership on food and nutrition security among rural rice farmers, using cross‐sectional data from a household survey from Ghana. We employ an endogenous switching regression (ESR) model to account for selection bias from observed and unobserved factors. Our findings show that participation in FOs significantly increases household dietary diversity by 10.56% and reduces food insecurity by 9.7%. The residualized quantile regression model results are consistent with the ESR model across both outcome variables. Policymakers should consider promoting FO membership as a strategy to enhance food and nutrition security among smallholders in developing countries.

Exploring combined adaptation strategies to improve crop yield and smallholder farmers’ welfare

ABSTRACT This study investigates whether combinations of climate change adaptation strategies are associated with improved yield and smallholder farmers’ welfare, using a random sample of 200 maize producers in Benin. It employs an extended regression model to address the selection bias and endogeneity issues. Furthermore, as a robustness check, a multinomial endogenous switching regression model is also estimated. Results indicate that tree planting and the use of improved variety are the single strategies that increase yield. However, when combined with other strategies, the effects decrease for tree planting while increasing for the use of improved variety. With regard to the welfare equation, the only improved variety is the single strategy that increases food expenditure per capita, and the effect increases when combined with other strategies. Overall, the results reveal that the use of improved variety is the single strategy that increases both yield and smallholder farmers’ welfare, and combined with other strategies, the effect increases. These findings suggest that the adoption of combined adaptation strategies is important for ensuring smallholder farmers’ welfare.

Collective market action, farm performance, and household welfare among maize farmers: the role of outgrower scheme in Northern Ghana

ABSTRACT Although outgrower scheme facilitates farmers’ collective action in agri-food value chain market participation, evidence of its impacts on farm performance and welfare is still limited. We examine the determinants and impact of outgrower scheme collective market participation on farm performance and household welfare in northern Ghana, using a multinomial endogenous switching regression (MESR) model to account for selectivity bias. The empirical findings show that participants in collective input and output markets as well as the joint markets outperform nonparticipants in terms of farm performance (commercialization and net farm income) and household expenditure, with the highest gains associated with joint market participation. We also observed that factors such as gender, age, extension service, credit, transaction cost, and awareness of outgrower scheme significantly influence farmers’ inclusion in group marketing. The findings suggest that policies that facilitate farmers’ access to agricultural inputs and output markets in collective action should be implemented through public–private partnerships to enhance farm performance and the livelihood of farmers.

Off-farm work, adoption of resource-conservation technology, and farm performance: evidence from banana farmers in China

ABSTRACT Resource-conservation technology (RCT) can optimize the use of natural resources, reduce waste, and promote sustainability in agricultural development. However, the dissemination of RCT among small-scale farmers still remains at a low level in developing countries. This paper examines the impact of off-farm work on farmers’ adoption of RCT using the endogenous switching probit (ESP) model, detects mediating factors between them, and further explores the farm performance of RCT using the endogenous switching regression model (ESR) based on the primary data of 524 banana farmers in rural China. The results show that off-farm work has a positive impact on farmers’ adoption of RCT. Farmers with off-farm work are more likely to adopt RCT compared with those without off-farm work due to off-farm work could increase farmers’ positive cognition on the new agriculture technology. Specifically, off-farm work expands farmers’ information acquisition channels and improves farmers’ agriculture technology acknowledge and thereby promote farmers’ adoption of RCT. Moreover, the adopters of RCT have a higher agricultural yield than the non-adopters. Our findings emphasize a positive farm performance of RCT in small-scale farms in developing regions.

Is bribery a conscious, strategic and rational choice? Impact on firms’ growth in India

This study, utilising data from the World Bank Enterprise Survey, probes the diverse effects of bribery on the growth of firms in India. The central question we ask is: what motivates certain firms to engage in bribery while others abstain? Employing the endogenous switching regression model, we aim to uncover the intricacies of this heterogeneity. Our findings suggest that bribery can facilitate growth, yet there is substantial heterogeneity in its impact on firms. The impact varies across firm groups: it positively influences those engaging in bribery, while non-bribers would have experienced adverse effects if they had engaged in bribery. Thus, we observe that firms’ decision to dis(engage) in bribery is influenced by the returns they derive from such a decision. This suggests that firms’ decision to (dis)engage in bribery is a conscious, strategic and rational one, driven by choice rather than coercion.

Does pluralistic agricultural advisory service delivery enhance sustainable land management? Evidence from southwestern Uganda

Declining land productivity and increasing land and food scarcity, amidst high population growth have precipitated the need for intensification of crop production. Sustainable land management technologies (SLMTs) have been suggested as a way to support the intensification process. In Uganda, agricultural advisory services (AAS) geared towards improved adoption of the SLMTs are provided, and farmers can access AAS from diverse sources, with the possibility of accessing from single or multiple sources. This study attempts to identify and prioritize the drivers of farmers’ access to (single/multiple) sources of AAS and determine the impact of access to these sources of AAS on the adoption of SLMT, and crop productivity. The study uses cross-sectional data collected from 435 households in the southwestern highlands of Uganda, in Kisoro and Kabale districts. The multinomial endogenous switching regression model combined with an endogenous switching regression model was used to analyse the data. Results indicate that both single and multiple sources of AAS have a positive effect on adoption of SLMTs and crop productivity, with the latter having a positive effect on the adoption of more SLMTs, while it seems to reduce the adoption of some other SLMTs. Similarly, accessing AAS from multiple sources has a higher positive impact on crop productivity, when compared to no access, but a lower impact when compared to access to a single source of AAS. These results suggest that access to multiple sources of AAS has positive impacts, but there are possible inherent challenges in the way it is implemented; lack of synchronisation of the messages given to the farmers, and the top-down approaches used to disseminate knowledge on SLMTs by some of the AAS providers may confound the possibly higher benefits of access to multiple sources of AAS. This study points out the need for policy to consider the advantages of having a streamlined agricultural extension system, with coordinated efforts from all agricultural advisory service providers and stakeholders. Key words: Agriculture, advisory services, sustainable land management, switching regression, highlands, Uganda

The productivity and income effects of adopting improved rice varieties by smallholder farmers in Indonesia

PurposeThis study identified the determinants of improved rice variety adoption and measured their impact on farm productivity and the income of smallholder farmers in Indonesia.Design/methodology/approachWe used a multistage sampling procedure and data from household surveys in four districts in the Banten region of Indonesia. An endogenous switching regression (ESR) model was used to estimate the impact of adoption, and the propensity score matching (PSM) non-parametric method tested the strength of the ESR findings.FindingsThe farm productivity of adoption increased by 11.45% and the income of smallholder farmers increased by 12.10% when compared to that of traditional methods.Research limitations/implicationsThe positive and significant effects of improved rice variety adoption indicated that research programs that develop improved rice varieties can optimize the productivity and income of smallholder farmers.Originality/valueAdopting improved rice varieties increases the productivity and income of smallholder farmers, and the level of education, rice farming experience, access to extension workers, off-farm work, and mobile phone ownership have positive and significant effects on the adoption of improved rice varieties.

Impact assessment of sustainable agricultural practices on smallholder households food security: evidence from Burkina Faso

ABSTRACT This study investigates the factors affecting smallholder farmers’ decisions to adopt Sustainable Agricultural Practices (SAPs) and the impacts of single and multiple SAPs adoption on household food security in the Hauts-Bassins region of Burkina Faso. Data were collected through an individual face-to-face survey with 384 farmers. The study used both the multinomial endogenous switching regression and the average treatment effect model complemented with the multivalued inverse probability weighted regression model for the analyses. Results showed that age, education, cooperative membership, farm size, and access to climate and technology information are some socio-economic determinants of farmers’ decisions to adopt SAPs. Several factors can affect the adoption of SAPs and the impact of adopted SAPs on household welfare. Therefore, adopting single or joint SAPs can’t lead to a positive impact on crop yield, income, and further food security, unless implemented in suitable conditions. Also, the adoption of SAPs may enable food diversification and availability but not cover all aspects of food security. Thus, future studies can deeply explore the impact of SAPs on the different dimensions of food security. Our findings advocate for policies that target reducing constraints faced by farmers in successfully implementing SAPs.

Does livestock-crop diversification improve food and nutrition security? Evidence from Eastern Ethiopia

ABSTRACT Pastoral and agro-pastoral households are the most vulnerable parts of the population to climate change-induced shocks and they are increasingly subject to acute food and nutrition insecurity. We identified drivers of livestock-crop diversification and examined its effects on improving households’ food and nutrition security using cross sectional data collected from 258 households across five districts in the East Hararghe zone in Ethiopia. Endogenous Switching Regression (ESR) analysis was used to identify factors associated with the households’ food and nutrition security outcomes and estimate the causal effects of livestock-crop diversification on the households’ food and nutrition security. Our results show that land certification, mobile phone ownership, and access to pastoral training centres were positively and significantly associated with livestock-crop diversification. In contrast, being located in Meyu Muluke and Kumbi districts were negatively and significantly associated with livestock-crop diversification, compared to Chinaksen district. The average treatment effect estimations suggest that livestock-crop diversification has positively and significantly improved diversified households’ nutritional security outcome. The findings also reveal that non-diversified households’ food insecurity would have reduced had they diversified. Nonetheless, livestock-crop diversification is neither enough to pull farm households fully out of food and nutrition insecurity nor the only factor influencing farm households’ food and nutrition security outcomes. Hence, there is also a need to strengthen access to physical infrastructure, credit facilities, extension services, provision of farm inputs, and pastoral training centres to reduce food and nutrition insecurity in the study area.

The Impact of Rural–Urban Student Mobility on the Efficiency of Resource Allocation in China’s Rural Households: Optimization or Distortion?

The impact of rural-urban student mobility on the efficiency of resource allocation in China’s rural households is crucial for refining policies related to rural migrant settlement and the balanced allocation of urban and rural educational resources. Drawing on theoretical insights, this study employs a mixed methods approach—primarily qualitative, with quantitative support—to empirically test the impact of rural-urban student mobility on the resource allocation efficiency of rural households in China. Utilizing micro-survey data from China Family Panel Studies (CFPS), this study applies ordinary least squares (OLS) models, propensity score matching difference-in-differences (PSM-DID) models, and endogenous switching regression (ESR) models to ascertain the direction of this impact. Furthermore, this study incorporates in-depth interview data gathered from field research in D County to explore the dynamic mechanisms of resource allocation adjustments within these households. The results show that rural-urban student mobility significantly reduces the efficiency of labor resource allocation and agricultural production in China’s rural households. The impact is heterogeneous across different groups, most negatively affecting households with limited labor resources, lower educational levels, lower incomes, more productive fixed assets, and less self-owned land. Mobility leads to suboptimal occupational choices, resulting in decreased labor resource efficiency. Additionally, it distorts agricultural production by leading to labor loss, reduced investments in agricultural productivity, and misaligned land allocation decisions.

Carbon reduction potential of housing retrofits: Evidence from China

Carbon emissions have become a major contributor to global climate change, with the building sector representing one-third of the global energy demand, and the residential sector accounting for 70 % of final energy demand worldwide. The energy consumption for building cooling has grown rapidly in recent years. Housing retrofits have shown potential in improving building energy efficiency and thus aligning with objectives for energy-saving and carbon emissions reduction in the residential sector. Based on survey data from 28 provinces in China, this study estimates the impacts of housing retrofits on the building energy consumption for air conditioners, as well as impacts on the resulting carbon emissions. Employing Endogenous switching regression to mitigate self-selection bias and the consequent endogeneity problem, the analysis reveals that housing retrofits can reduce building energy consumption and consequent carbon emissions. Furthermore, factors including household characteristics, building attributes and geographic location can influence both residential energy consumption and carbon emissions. In addition, low-income households, families with children and those living in self-owned houses can benefit the most from housing retrofits. This study also offers recommendations to reducing household energy consumption and carbon emissions through improved renovation practices. These insights are instrumental for policymakers in identifying targeted policy objectives across diverse demographic groups. The findings hold relevance for other developing countries with large amounts of inefficient housing stock during rapid urbanization, and those prone to global warming, aiding their pursuit of Sustainable Development Goals.

Complementary technology adoption and smallholder commercialization: Panel data evidence from Ethiopia

AbstractAgricultural transformation involves the transition from subsistence agriculture marked by cultivating crops for auto‐consumption to cultivating crops for output markets. This transition from subsistence agriculture to market‐oriented agriculture can be a key policy boost to economic development, but evidence on the key entry points to increasing smallholder commercialization remains scarce. We examine the relationship between the adoption of improved maize varieties (IMVs), inorganic fertilizers, and smallholder commercialization. We model commercialization as a two‐step decision process involving market participation and the extent of participation (sales quantity) conditional on participation. Given these two related steps, we estimate a double‐hurdle model in both linear and non‐linear forms. Employing a three‐wave panel dataset from Ethiopia, we use the household fixed effects and correlated random effects model with the control function approach. We find the adoption of IMVs to be significantly associated with both market participation and the extent of participation. This relationship is also true for fertilizers, where we show a positive association between fertilizer use and commercialization. Given the seeming complementarity in the use of both IMVs and fertilizers, we further estimate their joint adoption. We use the multinomial endogenous switching regression model where we show greater commercialization gains under joint adoption. These findings are in line with a growing literature supporting the bundling of agricultural technologies. Given these insights, we provide empirical and policy support to the scaling of agricultural technologies as they have the potential to induce agricultural transformation by unlocking market opportunities.