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Access to irrigation and the escape from poverty: Evidence from Northern Mali

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Author Info
Dillon, Andrew

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Abstract

"Significant changes in the agricultural sector in northern Mali suggest that irrigation has made a large contribution to welfare increases over the past eight years. Using difference-in-differences, propensity score matching, and matched difference in differences with a small panel, this study estimates the impact of access to irrigation on poverty, production, and nutrient intakes. The findings suggest that gains in agricultural production value do not transfer uniquely to household consumption. The paper tests two alternative hypotheses about the distribution of agricultural gains: (1) the gains in agricultural production induced by irrigation yield higher household savings, or (2) intra-village transfers from irrigators to non-irrigators contribute to informal social insurance. The paper provides evidence of both saving and sharing within villages as complimentary strategies for consuming gains in agricultural production. This finding suggests that estimating the effects of a program, relying solely on household consumption, may underestimate the welfare gains of irrigation investment by ignoring the household's savings and informal insurance network." from Author's Abstract

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Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 782.

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Date of creation: 2008
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Handle: RePEc:fpr:ifprid:782

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Keywords: Irrigation; Informal insurance; Development strategy;

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    Other versions:
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  5. Daniel O. Gilligan & John Hoddinott, 2007. "Is There Persistence in the Impact of Emergency Food Aid? Evidence on Consumption, Food Security, and Assets in Rural Ethiopia," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 89(2), pages 225-242, 05. [Downloadable!] (restricted)
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  6. Rosenzweig, Mark R & Binswanger, Hans P, 1993. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Economic Journal, Royal Economic Society, vol. 103(416), pages 56-78, January. [Downloadable!] (restricted)
  7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Harold Alderman & Jere Behrman & Hans-Peter Kohler & John A. Maluccio & Susan Watkins, 2001. "Attrition in Longitudinal Household Survey Data," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 5(4), pages 79-124, November. [Downloadable!]
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  9. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353. [Downloadable!] (restricted)
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  10. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
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  11. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-46, October. [Downloadable!] (restricted)
  12. Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 02 May 2009. [Downloadable!]
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