Heckman Model Research Articles

Livestock farming and women empowerment in rural Bangladesh: a mixed method approach

BackgroundIn Bangladesh, livestock farming is not only a major source of animal protein, but it also provides opportunities for women to contribute to household income. Therefore, this study was undertaken to identify the empowerment status of women livestock farmers, factors influencing women's participation in livestock farming and its impact on women's empowerment.MethodsThe study was conducted in the Mymensingh district (administrative unit) of Bangladesh, due to the active participation of women in livestock farming activities. A total of 200 women were surveyed between May to November 2018. Additionally, prior to the final survey, 02 Focus Group Discussions (FGDs) were performed to gain insight into the context of the study areas. Furthermore, a total of 12 semi-structured in-depth interviews were performed with 12 experienced women livestock farmers to collect data regarding the challenges they encounter in livestock farming. Women empowerment was measured using four domains: decision-making process, ownership of assets, social and political awareness, and freedom of mobility. Descriptive statistics, and Heckman's endogenous treatment effect model were applied to analyze the data.ResultsThe results revealed that majority (75%) of women who are involved in livestock farming had a medium level of empowerment. Women's decision to participate in livestock farming was positively influenced by farm size, knowledge, extension contact, and training. According to the average treatment effect on the treated (ATT) value, the empowerment status of women is 16 points higher among participants in livestock farming compared to non-participants. Furthermore, women in rural areas face several obstacles such as economic issues and inadequate marketing facilities, which may prevent them from engaging in livestock farming.ConclusionsEducating women through raising awareness and providing training is warranted because there is a notable disparity in the empowerment status of women who are and are not involved in livestock farming. This will help women improve their social awareness, decision-making capacity, and mobility. Livestock initiatives that encourage women's involvement could be generated by various rural-focused organizations.

How does the decision to cultivate underutilized crops influence food and nutrition security in rural areas?

The neglect in the cultivation, utilization, and diverse edible indigenous crops (ICs) threatens food-nutrition security (FNS) and rural development. Here, we (i) profiled the socioeconomics, ethnobotanicals and factors influencing the decision to cultivate edible ICs among smallholder farmers and (ii) factors influencing the FNS status of the ICs farmers in rural communities in South Africa using descriptive statistics and Heckman's probit-selection model to evaluate the factors influencing the decision to cultivate ICs and FNS. In the study, the household dietary diversity score (HDDS) was 7.01 and the household's food insecurity access scores (HFIAS) was 4.40. In addition, the food security indicator shows that 40.60 % of the participants were food insecure. Taken together, these metrics shows a significant existence of food and nutrition insecurity among the participants. Additionally, the decisions to cultivate ICs among the participants was driven by the household size, access to seeds, produce market, perceived nutritional benefits of the ICs and proportion of land used for cultivation significantly affects FNS status of the participants. Overall, the cultivation of these ICs is important as their cultivation significantly contributed to the FNS of the rural communities. Policy interventions, targeted at improving the present land tenure pattern, awareness on the value of ICs and incentives for production as a means for stimulating wider acceptance, cultivation, and sustainability in South Africa was recommended.

Willingness to pay for cataract surgery and its associated factors in selected medical centers in Urmia, Iran

IntroductionCataracts represent a significant public health issue and are the most prevalent vision disorder following refractive errors. They can restrict the economic, social, and psychological activities of those affected, thereby diminishing their quality of life. This study was undertaken to examine the willingness to pay for cataract surgery and the factors influencing this decision in selected medical centers in Urmia. The two-stage Heckman model was utilized to aid decision-making in financing this service.MethodsThis research was a descriptive-analytical study evaluating the economic aspects of health interventions, conducted from the patient’s perspective. In this cross-sectional study, a sample size of 217 patients with cataract issues was selected using Michel Carson’s table. These patients were from Imam Khomeini Hospital and Aftab Urmia Surgery Center in 2023. Data was collected using a conditional valuation approach to determine the maximum amount patients were willing to pay, as gathered through a questionnaire. The factors influencing the willingness to pay for cataract surgery were estimated using the two-stage Heckman regression model. The final effect value of each variable was calculated using Stata version 14 software.ResultsIn this study, 81.11% of participants (176 individuals) expressed a willingness to pay for cataract surgery, with the average amount they were willing to pay being $206.3. However, out of the 217 respondents, 41 rejected the proposed amounts and were not willing to pay anything. The results of the Hemken model indicated that the income of patients and the size of their households significantly influenced their willingness to pay for cataract surgery. However, other variables investigated did not have a significant impact.ConclusionThe study results revealed a significant influence of both income and household size on the likelihood of willingness to pay, as well as the extent of willingness to pay for cataract surgery. Consequently, it is crucial to formulate policies and provisions that guarantee access to cataract services, particularly for individuals from large households with low income and high costs.

Climate smart agriculture practices by crop farmers: Evidence from south east Nigeria

Climate change has severely impacted African countries, particularly Nigeria, affecting farmers' productivity due to adverse weather conditions. Climate Smart Agriculture (CSA) has emerged as a crucial approach to ensure sustainable agricultural growth and food security. This study aims to identify the sources of awareness, prevalent innovative agricultural practices, determinants of CSA adoption, and the intensity of CSA practices among crop farmers in Southeast Nigeria. A two-stage multi-random sampling technique was employed to collect data from 270 farmers across various locations in Southeast Nigeria through questionnaires. The analysis used descriptive statistics and Heckman's two-stage selection model to evaluate the sources of awareness, the extent of CSA practice, and factors influencing CSA adoption and its intensity. Results indicate that cooperative societies and extension workers are the primary sources of CSA awareness in the region. Key determinants of CSA adoption identified in the study include gender, household size, farming experience, education level, labor force size, income, extension exposure, credit access, risk orientation, and cooperative membership. The Heckman model revealed that cooperative membership significantly increases the probability of CSA adoption, while risk-averse farmers are less likely to adopt CSA practices. The study concludes that while CSA practices are recognized and adopted to some extent, their implementation is insufficient to comprehensively combat the effects of climate change. Enhanced efforts to promote and integrate CSA practices more widely are critically needed. To improve CSA adoption and effectiveness, it is recommended to provide increased support for cooperative societies and extension services, better access to credit, and targeted education and training programs for farmers. Additionally, policies should focus on reducing risk aversion among farmers by providing insurance schemes and other risk management tools.

Greening through top management team's environmental attention?

Green innovation seamlessly merges the concepts of "innovation-driven" and "green development," constituting a potent mechanism for firms to promote sustainable development. This study employs micro-level data sourced from China's A-share listed companies, drawing on the attention-based view and upper echelons theory as theoretical foundations. Utilizing text analysis, we quantify top management team's (TMT) environmental attention, subsequently employing a two-way fixed-effects model to investigate the correlation between TMT's environmental attention and firm's green innovation. Proceeding judiciously in light of extant evidence, we tentatively derive the subsequent conclusions: (1) TMT's environmental attention can drive firm's green innovation. This viewpoint still holds after multiple robustness tests such as Heckman model and placebo test. (2) Executive environmental background positively moderates the influence of TMT's environmental attention on firm's green innovation. (3) Information asymmetry between the government and firms could potentially exist, as the effect of TMT's environmental attention on firm's green innovation is not significant for firms with more government subsidies. (4) CEO duality attenuates the favorable influence of TMT's environmental attention. This research unveils internal driving factors for firm's green innovation, thereby furnishing a reliable basis for firms to develop more effective sustainable development strategies.

Determinants of market participation for small scale broiler farmers in Leribe District of Lesotho

The poultry industry is the fasted growing sub-sector of agriculture in the developing world and this is attributed to several pulling and pushing factors. On the demand side, the issue of urbanisation, income increase and animal protein requirements particularly for chicken has a positive influence on the growth of poultry production. Poultry farming is highly practised in rural households in Lesotho, and it constitutes an important contribution to the development of the rural economy in most developing countries. The poultry industry remains an important sub-sector of agriculture like in many other developing countries and it remains the main source of livelihood for village people and other small-scale farmers in the economy. Many rural communities are keeping poultry as a source of meat and eggs to feed their families, raise income from the surplus and create employment opportunities. However, access to formals markets remains a critical challenge for the farmers. This study examined the socio-economic, market and institutional factors that influenced broiler farmers’ market participation and intensity of participation in the Leribe district in Lesotho. A two-stage sampling technique was employed to select 114 respondents from five villages and the survey data was collected through a structured questionnaire. Heckman's two-stage model was used to analyse factors influencing farmers' market participation and the intensity of market participation. Gender, farmer income, storage access, production experience, extension service, credit access and information access were significant and influenced farmers’ market participation decisions. The study recommends interventions that will increase access and formal market participation.

The impact of business ethics on ESG engagement and the effect on corporate financial performance: evidence from family firms

PurposeThe increasing relevance of environmental, social and governance (ESG) engagement has attracted interest in its drivers and effects on business outcomes under different organizational settings. By focusing on family firms (FFs), we deepen both the role of business ethics as a predictor of enhanced ESG engagement and the link with improved corporate financial performance (CFP). In this way, we aim to provide new insights into the impact of business ethics and ESG engagement on FFs competitiveness.Design/methodology/approachBased on a worldwide panel of 335 FFs covering the 2002–2020 time horizon, this study adopts a two-stage Heckman model (1979) to empirically address two research questions: (RQ1) Do business ethics predict greater ESG engagement in FFs? (RQ2) Does ESG engagement positively affect the corporate financial performance (CFP) of FFs?FindingsThe results of the current study are twofold. First, we demonstrate that an ethical approach to business drives greater ESG engagement. Second, we show that higher levels of ESG engagement lead to improved financial performance in FFs.Originality/valueOur study contributes to filling the knowledge gaps regarding the drivers and effects of ESG engagement in FFs. On the one hand, we demonstrate the positive connection between dimensions that have their own identity, such as business ethics and ESG constructs. On the other hand, by shedding light on the impact of ESG engagement on improved CFP, we contribute to solving the trade-off between economic and noneconomic FF goals.

THE IMPACT OF COVID-19 PANDEMIC ON IT COMPANIES’ INNOVATION ACTIVITY IN THE USA

The study analyzes the impact of COVID-19 pandemic on such innovative activity indicators as R&D spending and the number of international patents of American IT companies. The sample includes 130 US companies from 2010 to 2021. The data are analyzed using the models with fixed individual effects and robust errors, Tobit and Heckman models. According to the findings R&D/Sales ratio has not changed during the pandemic. However, R&D expenditures increased during the pandemic for highly innovative firms and companies from the technology equipment sector increased analogue capitalized R&D. Besides, firms that had international patents before the pandemic granted more patents for registration during the pandemic. A one-year lag was found between innovations’ input in the form of R&D investment and innovations’ output in the form of international patents. These findings allow us to conclude that COVID-19 has a positive impact only on highly innovative companies in the United States.

Education expansion and its returns to education in Vietnam: a two-step Heckman model analysis

Education expansion and its returns to education in Vietnam: a two-step Heckman model analysis

Households’ willingness-to-pay for different strategies aimed at reducing water supply network dysfunctions. A French case-study

ABSTRACT Using an original contingent valuation, this study compares the Willingness-To-Pay (WTP) of households for three water pipes renewal programs focused respectively on water quality, reducing leaks in networks and preventing breaks. A survey was conducted in southwest France: respondents were asked to rank the different renewal programs and then state the maximum amount they would be willing to pay in order to benefit from each. Results of a Heckman model suggest that variables influencing the probability of refusing to pay for a non-economic reason and the WTP differ from one program to another, which validates this choice of model. WTP estimates are not of the same order of magnitude whatever the program, and remained relatively low when compared to the actual water bill. While asset management is often only seen as an activity calling for specialised technical knowledge, users are able to perceive the outcome of that management process.

Analyzing the determinants of beef cattle commercialization and Its market inefficiency: A case study of Pabna district, Bangladesh.

The world has entered a new era of globalization and industrialization, which pose several challenges to ensuring food security. Beef cattle production is one of the fastest-growing subsectors that has the capacity to meet protein demand. Due to growing demand of meat and protein and a market-oriented production system, small-scale beef cattle production contribute most to marginal farmers as a means of rising income in many developing nations like Bangladesh. Though production and commercialization are not easier for households' due to various factors and a lack of market efficiency. To determine beef cattle commercialization and market inefficiency, the current study focused on the determinants of beef cattle commercialization and the challenges to the of market efficiency. Heckman's two-stage model used to determine the factors that influence households' commercialization decisions, and the two-stage least squares method is used to examine the constraints of market inefficiencies. However, commercialization decisions offer twofold decision of commercialization and degree of commercialization. The result showed that commercialization decisions are significantly influenced by households' age, extension services, and production costs. The degree of commercialization was affected by education, marketing costs, income from dairy, transportation costs, and training access. On the other hand, market inefficiency was influenced by formal market access, distance, extension services, and earning from cattle. As extension services worsen both commercialization decisions and market efficiency, the government should focus on extension services and offer farmers opportunities to increase their understanding and knowledge of marketing.

Modeling the Nexus between geopolitical risk, oil price volatility and renewable energy investment; evidence from Chinese listed firms

Improving energy efficiency and investing in renewable sources are key influential factors that may lead to sustainable results from climate change policies. Using the data from Chinese listed companies, this study intends to find the impact of green financing, oil price volatility, and geopolitical risk in dealing with renewable energy investment. Therefore, this study used OLS and two-stage IV-GMM estimating methods considering direct and indirect relationships between the variables of interest. Similarly, this study also uses the advanced series of estimators in which AMG and CCE-MG estimators are being utilised to validate further. This research confirms the importance of green funding and environmental taxes in encouraging investment in renewable energy sources. According to Heckman's two-stage model with endogenous effects on the Chinese economy, geopolitical risk affects green investments in both the short and long term. Further, the analysis bolsters the connection between green financing and renewable energy investment while validating the moderating function of green regulations. The research suggests that China should prioritize the growth of eco-friendly businesses so that investments in renewable energy sources become mainstream. By integrating theoretical and empirical findings, the study has helped policymakers to make better decisions when developing and implementing environmental initiatives.

Congestion effects of energy and its influencing factors: China's transportation sector

This paper constructs a two-stage undesirable and desirable congestion model, which distinguishes purely technical inefficiency from congestion, to study the energy congestion of 30 transportation sectors in China from 2011 to 2020. The Heckman model is used to analyze the influence mechanism of various factors on the undesirable congestion of energy, which avoids sample selection bias. The results show that: (1) The undesirable congestion of energy mainly exists in the transport sector of the western region, while the desirable congestion of energy only exists in the transport sectors of the eastern and central regions. (2) Purely technical inefficiency in the transportation sector does not usually occur in isolation. (3) Population density and the proportion of clean freight turnover have a negative impact on the undesirable congestion of energy.

What determine livestock feed and marketing? Insights from rural Ethiopia

In sub-Saharan Africa where farmers undergo rapid losses of grazing lands and pasture areas, they face feed scarcity and poor animal marketing. In response, farmers make non-separable decisions on feed production and livestock marketing. Under the context of non-separable decision, however, factors affecting livestock feed collection and marketing are unclear in the literature. With the aim of addressing such a gap, this study has proposed two research questions: (1) what factors determine household's decisions on feed collection and livestock marketing? (2) Does feed collection influence livestock marketing? For the analysis, cross sectional data were gathered from 689 households in rural Ethiopia. While Tobit model was used to determine feed collection, two-stage Heckman model was deployed to identify key factors affecting livestock marketing. The study found that household's access to communal land, size of livestock holding, share-in land and own farmlands had positive and significant influence on feed collection. This urges farmers to involve in livestock marketing via selling their extra yield. Increased feed collection from communal and croplands leads to improve animal productivity. Econometric results further showed that household's education and access to training were influencing feed collection and livestock marketing positively. It also confirmed that feed collection and provision of credit services had significant effects on livestock marketing. The study further showed that livestock marketing was hardly realized without gathering feed from communal and private lands, which also entails the need to maintain the environment. This study is useful because it provides the significant roles of farm education, animal holding, credit services, communal and private lands in improving access to feed sources. The findings suggest the need for augmenting land conservation, introducing improved animal breeds and enhancing farmers’ capacity. These interventions ought to be supplemented with provision of credit services and follow up trainings.

부분육 온라인 거래소 참여 및 거래량 결정요인

To revitalize the wholesale market function, the government intends to establish an online livestock product exchange platform, promoting online trading for cuts of meat. We surveyed 110 meat processing companies nationwide to assess factors affecting the willingness to participate in online trading of cuts of meat and trading volume, using the sequence of Heckman, Logit, and Tobit models. Favorable online trading experience, short operation time, limited workforce, and minimal meat procurement boosted the willingness to participate in the online trading. High carcass auction satisfaction and distribution/sales challenges also increased the willingness to participate and transaction volume. This implies that a company's willingness to engage in the online trading of cuts of meat may be influenced by its perception of challenges stemming from a lack of experience in livestock product auction and variations in the company's size and business history.

Members’ willingness to pay for sustainability agricultural organization: A Heckman model approach

The purpose of this research analyzed the factors influencing the members’ willingness to pay capital in the agricultural cooperatives and unions. The research was performed on a sample 155 members of agricultural organizations in Igdir province of Türkiye using the Simple Random Sampling method. Members’ willingness to pay capital to their organizations were examined using the Contingent Valuation Method and effected factors were analyzed by Heckman Sample Selection model. The research showed that 56.6% of members were willing to pay capital an average of $131 for sustainability of organizations. According to the model results showed that members’ gender, agricultural income, know definition of organization, increase in income of members, pay entry capital, frequency of visiting, meeting the general assembly, cohesion of members positively affected, however, age, household, animal units, negative experience in the past with their organizations negatively affected the members’ willingness to pay capital. In order to sustainable of agricultural organizations, cohesion of members and participation to general assembly must increase. And, encouraging more young and female farmers to become a member, taking an active role cooperatives and unions in marketing and supply input could increase the members’ willingness to pay capital. In addition, training programs should be organized by agricultural organizations and government about increasing capital and economic participation.
 Keywords: Agricultural organizations; Contingent analysis; Cooperative; Heckman sample selection model; Willingness to pay capital

Busy CEO and financial statement footnotes readability: evidence from Indonesia

PurposeThis study aims to investigate the correlation between a CEO's business background and the readability of financial statement footnotes in Indonesia.Design/methodology/approachThis study utilizes a sample period spanning from 2010 to 2018 and employs various statistical tests, including Propensity Score Matching (PSM), Coarsened Exact Matching (CEM) and the Heckman Model, to demonstrate that it can address issues of causality and endogeneity without introducing bias.FindingsAs a result, the findings of this study indicate a statistically significant negative relationship between CEOs with busy schedules and the readability of financial statement footnotes. This suggests that companies led by busy CEOs are more likely to have financial statement footnotes that are easier to read.Research limitations/implicationsThese findings hold significance for clarifying research related to the challenges of contextual analysis in financial statement footnotes, which are distributed by companies on a sentence-by-sentence basis.Practical implicationsThe practical implications of the findings pertain to actionable steps that management can undertake and also offer regulators opportunities to monitor the potential for standard setting.Originality/valueBased on the results presented, the authors are optimistic that the findings will pave the way for broader research on the impact of a busy CEO, encompassing not only financial aspects but also non-financial dimensions. The growing popularity of readability is driven by the proliferation of textual reports that pose challenges in analysis and raise numerous inquiries.

Factor associated with willingness to pay for prevention of cancer: a study of prostate cancer screening

IntroductionThis study investigates Iranian men’s willingness to pay (WTP) for prostate cancer (PCa) screening and influencing factor, along with the impact of information.MethodWe assessed preferences for prostate cancer screening in 771 Iranian men aged 40 and above using an internet-based questionnaire survey. Participants received basic and complementary information, and their willingness to pay was determined through a payment card approach. A Wilcoxon test assessed the impact of information. We also analyzed prostate cancer screening demand and employed Heckman's two-step model to evaluate factors influencing the willingness to pay. Additionally, reasons for unwillingness to pay were explored.ResultsWillingness to pay significantly decreased with complementary information relative to basic information (16.3$ vs 17.8$). Heckman model, using WTP based on basic information shows age, education, and monthly household expenditure positively influenced the decision to pay. In contrast, health status, expectations of remaining life and prostate problems history positively affect amount of WTP for PCa screening, and insurance coverage has a negative impact on it.Majority of respondents (91%) supported PCa screening, with 82% expressing a willingness to pay. Common reasons for not paying include seeing screening as a public good (43%), financial constraints (35%), and having insurance (20%). The screening demand is price-sensitive.ConclusionThe basic mindset of Iranian men exaggerates the risk of prostate cancer. Reduced willingness to pay after receiving information reassures the reliability of their financial expectation. Taking into account the factors that influence PCa screening is essential for accurate planning and the successful implementation of this program.

WeChat E-Commerce, Social Connections, and Smallholder Agriculture Sales Performance: A Survey of Orange Farmers in Hubei Province, China

WeChat is a social media widely used in rural China because of its operability and simplicity. This paper contributes to the role of WeChat in rural e-commerce. Based on 406 orange farmers’ survey data from Hubei Province, China, we used the Heckman model to analyze the factors that influence farmers’ participation in WeChat e-commerce and estimate the impacts of WeChat e-commerce on farmers’ sales performance. We found that information literacy and social connections are important factors affecting farmers’ participation in WeChat e-commerce. WeChat e-commerce has a positive effect on farmers’ sales performance, and the social connections between farmers and consumers can reinforce this effect. Particularly, the beneficial effects are more prominent for farmers with a higher level of Internet development, who operate on a smaller scale, and who are less educated. The results show that WeChat e-commerce improves sales performance mainly by increasing the quantity of sales and the profit rate. These findings will help countries like China to use daily social media to develop rural e-commerce.

Personality Traits and Household Entrepreneurship: Evidence from China

ABSTRACT Household entrepreneurship can not only promote the sustainable development of the national economy, but also reduce unemployment. However, the urban-rural dual pattern leads to systematic differences in household entrepreneurship. This heterogeneity complicates the relationship between personality traits and household entrepreneurship. In order to study this complex relationship, this study empirically analyzed the influence of personality traits on entrepreneurial decisions and entrepreneurial returns of urban and rural households. Specifically, this study adopts the well-known “Big Five” personality classification criteria in the literature and constructs Probit, Tobit, and Heckman models based on the data of Chinese Family Panel Studies (CFPS) in 2016 and 2018. The results determine those factors beneficial for entrepreneurship, and the return of entrepreneurship depends upon the optimism, rigorousness, and preciseness of the householder. Additionally, the unrestricted intention of the household’s head is not conducive to entrepreneurship. The relevant departments should thoroughly acknowledge the influence of personality traits on the effectiveness of policies while making relevant policies involving household entrepreneurship.