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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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  1. Ravallion, Martin, 1996. "Issues in measuring and modeling poverty," Policy Research Working Paper Series 1615, The World Bank.
  2. Heltberg, Rasmus & Tarp, Finn, 2001. "Agricultural Supply Response and Poverty in Mozambique," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  3. Tschirley, David L. & Weber, Michael T., 1994. "Food security strategies under extremely adverse conditions: The determinants of household income and consumption in rural Mozambique," World Development, Elsevier, vol. 22(2), pages 159-173, February.
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  9. Adams, Richard H, Jr, 2002. "Nonfarm Income, Inequality, and Land in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 339-63, January.
  10. Delgado, Christopher L., 1995. "Agricultural diversification and export promotion in sub-Saharan Africa," Food Policy, Elsevier, vol. 20(3), pages 225-243, June.
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  12. Tschirley, David L. & Benfica, Rui M.S., 2000. "Smallholder Agriculture, Wage Labour, and Rural Poverty Alleviation in Mozambique: What Does the Evidence Tell Us?," Food Security Collaborative Working Papers 56041, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  13. Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
  14. Frederic Zimmerman & MICHAEL R. CARTER, . "Asset Smoothing, Consumption Smoothing and the Reproduction for Inequality under Risk and Subsistence Constraints," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 402, Wisconsin-Madison Agricultural and Applied Economics Department.
  15. Awudu Abdulai & Christopher L. Delgado, 1999. "Determinants of Nonfarm Earnings of Farm-Based Husbands and Wives in Northern Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 117-130.
  16. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
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Citations

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Cited by:
  1. Stifel, David, 2010. "The rural non-farm economy, livelihood strategies and household welfare," Journal of Cooperatives, NCERA-210, vol. 4(1), March.
  2. 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.
  3. 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).
  4. Tom Bundervoet, 2006. "Livestock, Activity Choices and Conflict: Evidence from Burundi," HiCN Working Papers 24, Households in Conflict Network.
  5. 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).

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