Department of Global Value Chains and Trade
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Item Impacts of risk preference and social insurance on household financial market participation in China: Are there differences between urban and rural residents?(Auckland Centre for Financial Research, 2024-02-02) Yang, Wei; Li, Zhaohua; Wang, LThis letter examines the impact of risk preference and social insurance on household financial market participation and diversification using the 2017 and 2019 China Household Finance Survey. A multi-value treatment model is used to address the selection bias between risk preference and household financial investment, considering the moderation role of social insurance in between. Overall, our results show that high-risk takers are more likely to participate in the financial market and diversify their portfolios than low risk takers. Focusing on rural and urban differentials, we find marked differences in the impacts of risk preference and social insurance on household financial investment. Having social insurance may widen the difference in investment decisions between high- and low-risk takers in urban areas; the latter group tends not to participate in or diversify when socially insured. In contrast, having social insurance encourages low- and intermediate-risk preferred rural households to participate in the financial market and diversify their financial portfolios. Our work highlights the different consequences of social insurance on investment incentives of the rural and urban households. Whilst the obvious benefits of having social insurance for rural households via risk-sharing, there is undesired consequence of incentive distortion of urban households.Item Climate-smart agricultural practices for enhanced farm productivity, income, resilience, and greenhouse gas mitigation: a comprehensive review(Springer, 2024-04) Zheng, H; Ma, Wanglin; He, QThis study reviews the literature published between 2013 and 2023 to comprehensively understand the consequences of adopting climate-smart agricultural (CSA) practices. We categorize the literature into three categories based on the scopes of climate-smart agriculture: (a) sustainably increase agricultural productivity and incomes; (b) adapt and build the resilience of people and agrifood systems to climate change; and (c) reduce or where possible, avoid greenhouse gas emissions. The review demonstrates that adopting CSA practices, in many instances, improves farm productivity and incomes. This increase manifests in increasing crop yields and productivity, income and profitability, and technical and resource use efficiency. Moreover, adopting CSA practices reinforces the resilience of farmers and agrifood systems by promoting food consumption, dietary diversity, and food security and mitigating production risks and vulnerabilities. Adopting CSA practices is environmentally feasible as it reduces greenhouse gas emissions and improves soil quality. An integrative strategy encompassing diverse CSA practices portends an optimized avenue to chart a trajectory towards agrifood systems fortified against climatic change.Item Flush toilet use and its impact on health and non-health expenditures(Wiley, 2024-03-10) Li, J; Vatsa, Puneet; Ma, WanglinThis study analysed the effects of flush toilet use on health and non-health expenditures incurred by rural Chinese. The instrumental-variable-based Tobit and endogenous treatment regression models were used to analyse the 2016 China Labour Force Dynamics Survey data while addressing the selection bias inherent in flush toilet use. The results showed that by improving rural residents' physical and mental health, flush toilet use reduced per capita health expenditure while increasing non-health expenditure. Furthermore, using flush toilets had positive spillover effects, reducing the health expenditures of even those who did not use them. Factors affecting flush toilet use were also analysed.Item Promoting the adoption of climate-smart agricultural technologies among maize farmers in Ghana: Using digital advisory services(Springer Nature, 2024-03) Asante, BO; Ma, Wanglin; Prah, S; Temoso, OAlthough policy and advisory communities have promoted the use of digital advisory services (DAS) to stimulate technology adoption among smallholder farmers, little is known about whether DAS use encourages farmers to adopt climate-smart agricultural (CSA) technologies. This study addresses the gap by estimating data collected from 3197 maize-producing households in rural Ghana and considering three CSA technologies: row planting, zero tillage, and drought-tolerant seeds. A recursive bivariate probit model is utilized to mitigate selection bias issues. The results show that DAS use significantly increases the probabilities of adopting row planting, zero tillage, and drought-tolerant seeds by 12.4%, 4.2%, and 4.6%, respectively. Maize farmers’ decisions to use DAS are influenced by their age, gender, education, family size, asset value, distance to farm, perceived incidence of pest and disease, perceived drought stress, and membership in farmer-based organizations (FBO). Furthermore, the disaggregated analysis reveals that DAS use has a larger impact on the row planting adoption of female farmers than males.Item Agricultural mechanization and non-farm employment of rural women(2024-02-07) Ma, WanglinThis study analyzes the impact of the adoption of agricultural mechanization and its intensity on the non-farm employment of rural women using the 2016 China Labor-force Dynamics Survey data. The study captures mechanization adoption as a dichotomous decision and adoption intensity using three types of farming strategies: non-mechanized, semi-mechanized, and fully-mechanized. Non-farm work is categorized based on work types (self-employment or wage employment) and work locations (local or migrated non-farm work). Both inverse probability weighting with regression adjustment (IPWRA) estimator and multivalued treatment effects (MVTE) model are utilized to address selection bias. The IPWRA estimates reveal that mechanization adoption increases the probability of rural women participating in non-farm work in general and wage employment and local and migrated non-farm work in particular. The impact is greater for unmarried women than for their married counterparts. The MVTE estimates show that relative to non-mechanized farming, the adoption of semi-or fully-mechanized farming increases the probability of rural women participating in non-farm work, wage employment, and local and migrated non-farm work, with fully-mechanized farming playing a larger role. Meanwhile, relative to semi-mechanized farming, adopting fully-mechanized farming does not have a significant impact on any type of non-farm work.