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Spillovers from high-value agriculture for exports on land use in developing countries: evidence from Madagascar

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  • Bart Minten
  • Lalaina Randrianarison
  • Johan Swinnen

Abstract

High-value agriculture for exports is increasingly important in developing countries. In a case study of contract farming for exports of vegetables from Madagascar, strong spillover effects of these trade opportunities on land use are found to exist. Using a matched plot sampling design, the productivity of rice-the main domestically consumed staple-is shown to be two-thirds higher on fields that were contracted during the off-season for the production of vegetables. This increase in yields is linked to an increase of soil fertility due to the application of fertilizer and compost, which farmers did not use prior to the contracts. Although agricultural output goes up significantly, labor productivity stays the same, suggesting that there is greater labor absorption on existing land and the diffusion of this type of technology at a larger scale throughout Madagascar would be expected to substantially decrease incentives to deforest by increasing wages and to boost productivity of existing lands relative to newly deforested ones. Copyright 2007 International Association of Agricultural Economists.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 37 (2007)
Issue (Month): 2-3 (09)
Pages: 265-275

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Handle: RePEc:bla:agecon:v:37:y:2007:i:2-3:p:265-275

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Cited by:
  1. Cadot, Olivier & Dutoit, Laure & Olarreaga, Marcelo, 2010. "Barriers to Exit from Subsistence Agriculture," CEPREMAP Working Papers (Docweb) 1014, CEPREMAP.
  2. Fontaine, Damien & Gaspart, Frederic & Frahan, Bruno Henry de, 2008. "Modelling the impact of private quality standards on the fresh fruit and vegetable supply chains in developing countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44378, European Association of Agricultural Economists.
  3. Dries, Liesbeth & Swinnen, Johan F.M., 2010. "The impact of interfirm relationships on investment: Evidence from the Polish dairy sector," Food Policy, Elsevier, vol. 35(2), pages 121-129, April.
  4. Rao, Elizaphan J.O. & Brummer, Bernhard & Qaim, Matin, 2011. "Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya," Discussion Papers 113508, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
  5. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, vol. 37(6), pages 700-709.
  6. Maertens, Miet & Verhofstadt, Ellen, 2013. "Horticultural exports, female wage employment and primary school enrolment: Theory and evidence from Senegal," Food Policy, Elsevier, vol. 43(C), pages 118-131.
  7. Elizaphan J.O. Rao & Matin Qaim, 2009. "Farmer participation in supermarket channels and technical efficiency: The case of vegetable production in Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 18, Courant Research Centre PEG.
  8. Negash, Martha & Swinnen, Johan F.M., 2013. "Biofuels and food security: Micro-evidence from Ethiopia," Energy Policy, Elsevier, vol. 61(C), pages 963-976.

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