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Does agro-processing adoption affect farm income and farm diversification? Empirical evidence from Taiwan

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  • Lin Lin
  • Hung-Hao Chang

Abstract

Purpose - The purpose of this paper is to identify the factors associated with the adoption of agro-processing methods and to estimate their impact on farm income and farm diversification. Design/methodology/approach - Using a large-scale sample of 12,122 special crop farm households drawn from the 2015 Agricultural Census Survey in Taiwan, the semiparametric multivalued treatment effect model was estimated. Findings - The authors found that agro-processing farm households obtain higher farm incomes than non-agro-processing farm households. Among the agro-processing methods, self-processing generates higher farm income than outsourced-processing. Moreover, farm households that adopt either agro-processing method are more likely to diversify into agritourism and other agribusinesses than non-agro-processing farms. Research limitations/implications - The authors could only access data on farm income and not on agro-processing costs. Future studies may address the impact of agro-processing on farm profitability if relevant data are available. Originality/value - Very few studies have examined the relationship between agro-processing, farm income and farm diversification. To the best of the authors’ knowledge, this is one of the first papers to examine the impact of different agro-processing practices on farm income and farm diversification.

Suggested Citation

  • Lin Lin & Hung-Hao Chang, 2021. "Does agro-processing adoption affect farm income and farm diversification? Empirical evidence from Taiwan," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 11(5), pages 567-577, February.
    • Handle: RePEc:eme:jadeep:jadee-07-2020-0157
    DOI: 10.1108/JADEE-07-2020-0157
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    Cited by:

    1. Ma, Wanglin & Vatsa, Puneet & Zheng, Hongyun & Rahut, Dil Bahadur, 2022. "Nonfarm employment and consumption diversification in rural China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 582-598.

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