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Non-Traditional Exports, Traditional Constraints; the Adoption and Diffusion of Cash Crops among Smallholders in Guatemala

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Author Info

  • Calogero Carletto

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Angeli Kirk

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Paul Winters

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Benjamin Davis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract

This paper uses a duration analysis based on adoption data spanning over 25 years from six communities in the Central Highlands of Guatemala to explore how household characteristics and external trends play into both the adoption and diffusion processes of non-traditional exports among smallholders. Adoption was initially widespread and rapid, which led NTX to be hailed as a pro-poor success, reaching all but the smallest landholders. However, over time, more than two-thirds of adopters eventually dropped out from NTX production. Based on the analysis, NTX production appeared to have delivered less prosperity to adopters than initially promised. Primarily better-endowed farmers were able to overcome the increasingly adverse conditions and, in the long-terms, institutions and policy interventions do not appear to have mitigated these difficulties for less-endowed farmers. While poor farmers may be enticed into entering into NTX markets when conditions are favorable, they may lack the capacity to overcome difficulties that inevitably arise in complex types of cultivations and in highly variable global agricultural markets. Governmental and non-governmental organizations can attempt to mitigate these difficulties, but market forces may overwhelm these efforts, with poorer adopters still unable to compete in global markets.

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Bibliographic Info

Paper provided by Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA) in its series Working Papers with number 07-03.

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Length: 28 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:fao:wpaper:0703

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Keywords: Non traditional exports; Guatemala; small holders; adoption; globalization.;

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References

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  1. Leggesse Dadi & Michael Burton & Adam Ozanne, 2004. "Duration Analysis of Technological Adoption in Ethiopian Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 613-631.
  2. Winters, Paul & Crissman, Charles C. & Espinosa, Patricio, 2004. "Inducing the adoption of conservation technologies: lessons from the Ecuadorian Andes," Environment and Development Economics, Cambridge University Press, vol. 9(05), pages 695-719, October.
  3. Kebede, Yohannes & Gunjal, Kisan & Coffin, Garth, 1990. "Adoption of new technologies in Ethiopian agriculture: The case of Tegulet-Bulga district Shoa province," Agricultural Economics, Blackwell, vol. 4(1), pages 27-43, April.
  4. Carletto, Calogero & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Sustainability in the Diffusion of Innovations: Smallholder Nontraditional Agro-Exports in Guatemala," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 345-69, January.
  5. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  6. von Braun, Joachim & Hotchkiss, David & Immink, Maarten D. C., 1989. "Nontraditional export crops in Guatemala: effects on production, consumption, and nutrition," Research reports 73, International Food Policy Research Institute (IFPRI).
  7. Calogero Carletto, 2000. "Nontraditional crops and land accumulation among Guatemalan smallholders," FCND briefs 80, International Food Policy Research Institute (IFPRI).
  8. Rahm, M. & Huffman, Wallace, 1984. "The Adoption of Reduced Tillage: The Role of Human Capital and Other Variables," Staff General Research Papers 10977, Iowa State University, Department of Economics.
  9. Asfaw, Abay & Admassie, Assefa, 2004. "The role of education on the adoption of chemical fertiliser under different socioeconomic environments in Ethiopia," Agricultural Economics, Blackwell, vol. 30(3), pages 215-228, May.
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Cited by:
  1. Kasirye, Ibrahim, 2013. "Constraints to Agricultural Technology Adoption in Uganda: Evidence from the 2005/06-2009/10 Uganda National Panel Survey," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), August.

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