IDEAS home Printed from https://ideas.repec.org/a/eee/asieco/v88y2023ics1049007823000660.html
   My bibliography  Save this article

Productivity and market participation: Cambodian rice farmers

Author

Listed:
  • Khun, Channary
  • Lim, Sokchea

Abstract

Rice is the staple food in many Asian countries. The study attempts to understand the underlying issues of low rice farm productivity and whether progress made on this front will lead to greater market participation. Employing a control function to address the endogeneity issue and using the latest survey of Cambodia’s agriculture sector, the paper finds that rice farmers are more likely to commercialize their crops when productivity rises. The probability rises by about 20 % with a ton increase in rice yields. This has an important implication; policies and reforms targeting farm productivity not only boost rice production, but also promote commercialization and possibly exports. In addition, enhancing productivity hinges, among others, on improvement in general education, expansion of irrigation, and pesticide usage, as well as increased adoption of aromatic paddies, sticky paddies, and modern varieties.

Suggested Citation

  • Khun, Channary & Lim, Sokchea, 2023. "Productivity and market participation: Cambodian rice farmers," Journal of Asian Economics, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:asieco:v:88:y:2023:i:c:s1049007823000660
    DOI: 10.1016/j.asieco.2023.101646
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1049007823000660
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.asieco.2023.101646?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daniel Ayalew Ali & Klaus Deininger & Marguerite Duponchel, 2014. "Credit Constraints and Agricultural Productivity: Evidence from rural Rwanda," Journal of Development Studies, Taylor & Francis Journals, vol. 50(5), pages 649-665, May.
    2. Hamdiyah Alhassan & Benjamin Musah Abu & Paul Kwame Nkegbe, 2020. "Access to Credit, Farm Productivity and Market Participation in Ghana: A Conditional Mixed Process Approach," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(2), pages 226-246, May.
    3. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    4. Foster, Andrew D & Rosenzweig, Mark R, 1996. "Technical Change and Human-Capital Returns and Investments: Evidence from the Green Revolution," American Economic Review, American Economic Association, vol. 86(4), pages 931-953, September.
    5. Bao Duong, Pham & Izumida, Yoichi, 2002. "Rural Development Finance in Vietnam: A Microeconometric Analysis of Household Surveys," World Development, Elsevier, vol. 30(2), pages 319-335, February.
    6. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
    7. Ogutu, Sylvester Ochieng & Qaim, Matin, 2019. "Commercialization of the small farm sector and multidimensional poverty," World Development, Elsevier, vol. 114(C), pages 281-293.
    8. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    9. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521766555.
    10. Chea Sareth & Rob Cramb & Shu Fukai, 2020. "The Role of Irrigation in the Commercialisation of Rice Farming in Southern Cambodia," Springer Books, in: Rob Cramb (ed.), White Gold: The Commercialisation of Rice Farming in the Lower Mekong Basin, chapter 0, pages 261-289, Springer.
    11. World Bank Group, 2015. "Cambodian Agriculture in Transition," World Bank Publications - Reports 22680, The World Bank Group.
    12. Barrett, Christopher B. & Bellemare, Marc F. & Hou, Janet Y., 2010. "Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship," World Development, Elsevier, vol. 38(1), pages 88-97, January.
    13. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
    14. Newey, Whitney K., 1987. "Efficient estimation of limited dependent variable models with endogenous explanatory variables," Journal of Econometrics, Elsevier, vol. 36(3), pages 231-250, November.
    15. Bingxin Yu & Shenggen Fan, 2011. "Rice production response in Cambodia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(3), pages 437-450, May.
    16. Gaurav Datt & Martin Ravallion, 1998. "Farm productivity and rural poverty in India," Journal of Development Studies, Taylor & Francis Journals, vol. 34(4), pages 62-85.
    17. Mishra, Ashok K. & Bairagi, Subir & Velasco, Maria Lourdes & Mohanty, Samarendu, 2018. "Impact of access to capital and abiotic stress on production efficiency: Evidence from rice farming in Cambodia," Land Use Policy, Elsevier, vol. 79(C), pages 215-222.
    18. Foltz, Jeremy D., 2004. "Credit market access and profitability in Tunisian agriculture," Agricultural Economics, Blackwell, vol. 30(3), pages 229-240, May.
    19. World Bank, 2015. "Cambodia Sanitation Marketing," World Bank Publications - Reports 21901, The World Bank Group.
    20. Asfaw, Solomon & Shiferaw, Bekele & Simtowe, Franklin & Lipper, Leslie, 2012. "Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia," Food Policy, Elsevier, vol. 37(3), pages 283-295.
    21. Richard W. Blundell & Richard J. Smith, 1989. "Estimation in a Class of Simultaneous Equation Limited Dependent Variable Models," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 56(1), pages 37-57.
    22. Benjamin Musah Abu & Haruna Issahaku & Paul Kwame Nkegbe, 2016. "Farmgate versus market centre sales: a multi-crop approach," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-16, December.
    23. Olwande, John & Smale, Melinda & Mathenge, Mary K. & Place, Frank & Mithöfer, Dagmar, 2015. "Agricultural marketing by smallholders in Kenya: A comparison of maize, kale and dairy," Food Policy, Elsevier, vol. 52(C), pages 22-32.
    24. Minten, Bart & Barrett, Christopher B., 2008. "Agricultural Technology, Productivity, and Poverty in Madagascar," World Development, Elsevier, vol. 36(5), pages 797-822, May.
    25. Channary Khun & Sajal Lahiri & Sokchea Lim, 2020. "Why Do U.S. Parents Prefer Private To Foster Care Adoptions? The Role Of Adoption Subsidies, Gender, Race, And Special Needs," Economic Inquiry, Western Economic Association International, vol. 58(4), pages 1757-1782, October.
    26. Reyes, Byron & Donovan, Cynthia & Bernsten, Richard H. & Maredia, Mywish K., 2012. "Market participation and sale of potatoes by smallholder farmers in the central highlands of Angola: A Double Hurdle approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126655, International Association of Agricultural Economists.
    27. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    28. Stephan J. Goetz, 1992. "A Selectivity Model of Household Food Marketing Behavior in Sub-Saharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 74(2), pages 444-452.
    29. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Farm Productivity and Household Market Participation: Evidence from LSMS Data," 2009 Conference, August 16-22, 2009, Beijing, China 51031, International Association of Agricultural Economists.
    30. Achandi, Esther L. & Mujawamariya, Gaudiose, 2016. "Market participation by smallholder rice farmers in Tanzania: a double hurdle analysis," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 118(2), pages 1-4, August.
    31. Richard Palmer-Jones & Kunal Sen, 2003. "What has luck got to do with it? A regional analysis of poverty and agricultural growth in rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 40(1), pages 1-31.
    32. Lyons, David C. & Thompson, Robert L., 1981. "The Effect of Distortions in Relative Prices on Corn Productivity and Exports: A Cross-Country Study," Journal of Rural Development/Nongchon-Gyeongje, Korea Rural Economic Institute, vol. 4(1), June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hamdiyah Alhassan & Benjamin Musah Abu & Paul Kwame Nkegbe, 2020. "Access to Credit, Farm Productivity and Market Participation in Ghana: A Conditional Mixed Process Approach," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 14(2), pages 226-246, May.
    2. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Rios, Ana R. & Shively, Gerald E. & Masters, William A., 2009. "Farm Productivity and Household Market Participation: Evidence from LSMS Data," 2009 Conference, August 16-22, 2009, Beijing, China 51031, International Association of Agricultural Economists.
    4. Sicelo Ignatius Dlamini & Wen-Chi Huang, 2019. "A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini," Sustainability, MDPI, vol. 11(19), pages 1-27, September.
    5. CAMARA, Alhassane, 2017. "Market participation of smallholders and the role of the upstream segment: evidence from Guinea," MPRA Paper 78903, University Library of Munich, Germany, revised May 2017.
    6. Proscovia Renzaho Ntakyo & Marrit Berg, 2019. "Effect of market production on rural household food consumption: evidence from Uganda," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(5), pages 1051-1070, October.
    7. Shilpi, Forhad & Umali-Deininger, Dina, 2007. "Where to sell ? market facilities and agricultural marketing," Policy Research Working Paper Series 4455, The World Bank.
    8. Paswel P. Marenya & Christopher B. Barrett, 2009. "Soil quality and fertilizer use rates among smallholder farmers in western Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 40(5), pages 561-572, September.
    9. Benjamin Musah Abu & Haruna Issahaku & Paul Kwame Nkegbe, 2016. "Farmgate versus market centre sales: a multi-crop approach," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-16, December.
    10. Cazzuffi, Chiara & McKay, Andrew, 2012. "Rice market participation and channels of sale in rural Vietnam," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126566, International Association of Agricultural Economists.
    11. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.
    12. Reyes, Byron & Donovan, Cynthia & Bernsten, Richard H. & Maredia, Mywish K., 2012. "Market participation and sale of potatoes by smallholder farmers in the central highlands of Angola: A Double Hurdle approach," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126655, International Association of Agricultural Economists.
    13. Melkani, Aakanksha & Mason, Nicole & Mather, David & Chisanga, Brian & Jayne, Thom, 2021. "Smallholder Market Participation and Choice of Marketing Channel in the Presence of Liquidity Constraints: Evidence from Zambian Maize Markets," 2021 Conference, August 17-31, 2021, Virtual 315273, International Association of Agricultural Economists.
    14. Chamberlin, Jordan & Jayne, T.S., 2013. "Unpacking the Meaning of ‘Market Access’: Evidence from Rural Kenya," World Development, Elsevier, vol. 41(C), pages 245-264.
    15. Mather, David & Boughton, Duncan & Jayne, Thomas S., 2011. "Smallholder Heterogeneity and Maize Market Participation in Southern and Eastern Africa: Implications for Investment Strategies to Increase Marketed Food Staple Supply," Food Security International Development Working Papers 118473, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    16. Oliver Schulte & Trung Thanh Nguyen & Ulrike Grote, 2022. "The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2878-2898, December.
    17. Dzanku, Fred M. & Jirström, Magnus & Marstorp, Håkan, 2015. "Yield Gap-Based Poverty Gaps in Rural Sub-Saharan Africa," World Development, Elsevier, vol. 67(C), pages 336-362.
    18. Girma Gezimu Gebre & Hiroshi Isoda & Dil Bahadur Rahut & Yuichiro Amekawa & Hisako Nomura, 2021. "Gender Gaps in Market Participation Among Individual and Joint Decision-Making Farm Households: Evidence from Southern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(3), pages 649-683, June.
    19. Larochelle, Catherine & Alwang, Jeffrey, 2015. "Explaining Marketing Strategies among Bolivian Potato Farmers," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(3), pages 1-24, September.
    20. Mather, David & Boughton, Duncan & Jayne, T.S., 2013. "Explaining smallholder maize marketing in southern and eastern Africa: The roles of market access, technology and household resource endowments," Food Policy, Elsevier, vol. 43(C), pages 248-266.

    More about this item

    Keywords

    Market participation; Rice yields; Productivity; Commercialization; Cambodia;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:88:y:2023:i:c:s1049007823000660. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/asieco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.