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The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique

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  • Tilman Brück

Abstract

This paper analyses the effects of activity choices on farm household income and consumption in a war-affected developing country. The study uses household survey data from Mozambique and controls for the endogeneity of activity choices with instrumental variables. War-time activity choices (such as subsistence farming) are shown to enhance welfare in the post-war period. Market and social exchange induce only limited welfare gains. Cotton adoption reduces household welfare, which contradicts previous studies not controlling for endogenous activity choices. The study thus demonstrates how standard predictions of economics may become invalid in post-war economies. Furthermore, the paper identifies pro-poor reconstruction policies.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.41356.de/dp413.pdf
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Bibliographic Info

Paper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 413.

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Length: 32 p.
Date of creation: 2004
Date of revision:
Handle: RePEc:diw:diwwpp:dp413

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Keywords: Poverty; Farm households; Activity choices; Rural development; War; Reconstruction;

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References

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  13. Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
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  17. Adams, Richard H., Jr, 1999. "Nonfarm income, inequality, and land in Rural Egypt," Policy Research Working Paper Series 2178, The World Bank.
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Citations

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Cited by:
  1. Ciarli, Tommaso & Parto, Saeed & Savona, Maria, 2010. "Conflict and Entrepreneurial Activity in Afghanistan: Findings from the National Risk Vulnerability Assessment Data," Working Paper Series UNU-WIDER Working Paper W, World Institute for Development Economic Research (UNU-WIDER).
  2. Stifel, David, 2010. "The rural non-farm economy, livelihood strategies and household welfare," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 4(1), March.
  3. Tom Bundervoet, 2006. "Livestock, Activity Choices and Conflict: Evidence from Burundi," HiCN Working Papers 24, Households in Conflict Network.
  4. Bruck, Tilman & Schindler, Kati, 2008. "The Impact of Conflict and Fragility on Households: A Conceptual Framework with Reference to Widows," Working Paper Series RP2008/83, World Institute for Development Economic Research (UNU-WIDER).
  5. Ibáñez, Ana María & Moya, Andrés, 2010. "Vulnerability of Victims of Civil Conflicts: Empirical Evidence for the Displaced Population in Colombia," World Development, Elsevier, vol. 38(4), pages 647-663, April.

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