Department of Global Value Chains and Trade

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Recent Submissions

Now showing 1 - 5 of 309
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    Linking farmers to markets: Barriers, solutions, and policy options
    (Elsevier on behalf of Economic Society of Australia, Queensland, 2024-06) Ma, Wanglin; Rahut, DB; Sonobe, T; Gong, B
    The 15 studies highlighted in this special issue collectively underscore the significant impacts of market participation on farmers’ well-being, income, poverty reduction, dietary diversity, and rural economic growth. They also delve into the importance of marketing channel choice and the role of e-commerce in enhancing farmers’ market linkages. In addition, they address farmers’ preferences for market access interventions and the examination of market power within the agricultural industry, especially in low-income countries. The key findings include: (1) Market participation is critical for improving farmers’ subjective and objective well-being, with studies demonstrating positive impacts on income, poverty reduction, and dietary diversity; (2) The choice of marketing channels significantly influences income, with evidence suggesting online sales can substantially increase farmers’ earnings; (3) E-commerce plays a pivotal role in connecting farmers to broader markets, leading to income growth and enhanced market visibility; (4) Understanding and addressing farmers’ preferences for market access through interventions like systematization policies and joint ventures can facilitate better market integration and support inclusive business models; (5) Analysis of market power within the primary foods industry reveals rising markups, particularly affecting low-income countries. These findings suggest that policies and interventions aiming to improve market access, promote e-commerce, and consider farmers’ preferences and market power dynamics can significantly impact farmers’ incomes, poverty levels, and overall rural economic development.
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    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, L
    This 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.
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    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, Q
    This 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.
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    Flush toilet use and its impact on health and non-health expenditures
    (Wiley, 2024-03-10) Li, J; Vatsa, Puneet; Ma, Wanglin
    This 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.
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    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, O
    Although 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.