IDEAS home Printed from https://ideas.repec.org/p/tvs/wpaper/wp-034.html
   My bibliography  Save this paper

Does irrigation development mitigate weather extremes’ impacts and reduce poverty? Evidence from rural Southeast Asia

Author

Listed:
  • Manh Hung Do
  • Trung Thanh Nguyen

Abstract

Water is critical for agriculture in developing countries and climate change has created extreme weather events that push farmers into poverty. In this study, we first examine the role of year-round irrigation at village level in ensuring irrigation at household level and helping farmers to cope with weather shocks. We then investigate the effects of irrigation on crop farming efficiency, income, and poverty of rural households. We use a panel dataset of 1,681 households in Thailand and 1,699 households in Vietnam collected in 2010, 2013, and 2016 with a total number of 10,140 observations. Our results show that the availability of year-round irrigation at village level positively and significantly increases the share of irrigated land areas at household level. Besides, weather shocks significantly decrease crop farming efficiency and an improvement in irrigation has a positive effect on farming efficiency. Further, an increase in irrigated land share at household level increases crop income and total household income, and decreases poverty. Our results suggest that making irrigation water available throughout the year is needed for farmers to cope with extreme weather events and to escape from poverty. This should be done by developing infrastructure for ensuring year-round irrigation.

Suggested Citation

  • Manh Hung Do & Trung Thanh Nguyen, 2023. "Does irrigation development mitigate weather extremes’ impacts and reduce poverty? Evidence from rural Southeast Asia," TVSEP Working Papers wp-034, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    • Handle: RePEc:tvs:wpaper:wp-034
    as

    Download full text from publisher

    File URL: http://wp-tvsep.ifgb.uni-hannover.de/RePEc/tvs/pdfbib/wp-034.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Trung Thanh Nguyen & Manh Hung Do & Dil B. Rahut & Viet Hung Nguyen & Panharoth Chhay, 2023. "Female leadership, internet use, and performance of agricultural cooperatives in Vietnam," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 877-903, September.
    2. Karen Parry & André F. van Rooyen & Henning Bjornlund & Luitfred Kissoly & Martin Moyo & Wilson de Sousa, 2020. "The importance of learning processes in transitioning small-scale irrigation schemes," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 36(S1), pages 199-223, October.
    3. J. M. Kandulu & J. D. Connor, 2017. "Improving the effectiveness of aid: an evaluation of prospective Mekong irrigation investments," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 33(2), pages 270-291, March.
    4. Do, Manh Hung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 157-173.
    5. Nicolas Gatti & Kathy Baylis & Benjamin Crost, 2021. "Can Irrigation Infrastructure Mitigate the Effect of Rainfall Shocks on Conflict? Evidence from Indonesia," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(1), pages 211-231, January.
    6. Federico Belotti & Silvio Daidone & Giuseppe Ilardi & Vincenzo Atella, 2013. "Stochastic frontier analysis using Stata," Stata Journal, StataCorp LP, vol. 13(4), pages 718-758, December.
    7. Cecilia Tortajada, 2014. "Water infrastructure as an essential element for human development," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 30(1), pages 8-19, March.
    8. Joost Buurman & Du Duong Bui & Le Thuy Tien Du, 2020. "Drought risk assessment in Vietnamese communities using household survey information," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 36(1), pages 88-105, January.
    9. Cecilia Poggi, 2019. "Credit Availability and Internal Migration: Evidence from Thailand," Journal of Development Studies, Taylor & Francis Journals, vol. 55(5), pages 861-875, May.
    10. Awudu Abdulai & Hendrik Tietje, 2007. "Estimating technical efficiency under unobserved heterogeneity with stochastic frontier models: application to northern German dairy farms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 34(3), pages 393-416, September.
    11. Nguyen, Giang & Nguyen, Trung Thanh, 2020. "Exposure to weather shocks: A comparison between self-reported record and extreme weather data," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 117-138.
    12. Blakeslee, David & Dar, Aaditya & Fishman, Ram & Malik, Samreen & Pellegrina, Heitor S. & Bagavathinathan, Karan Singh, 2023. "Irrigation and the spatial pattern of local economic development in India," Journal of Development Economics, Elsevier, vol. 161(C).
    13. Byman H. Hamududu & Hambulo Ngoma, 2020. "Impacts of climate change on water resources availability in Zambia: implications for irrigation development," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 2817-2838, April.
    14. Cecilia Tortajada & Asit K. Biswas, 2022. "Water security, climate change and COP26," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 38(2), pages 193-198, March.
    15. John Draper & Joel Sawat Selway, 2019. "A New Dataset on Horizontal Structural Ethnic Inequalities in Thailand in Order to Address Sustainable Development Goal 10," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(1), pages 275-297, January.
    16. Tesfaye, A. & Bogale, A. & Namara, Regassa E., 2008. "The impact of small scale irrigation on household food security: the case of Filtino and Godino Irrigation Schemes in Ada Liben District, East Shoa, Ethiopia," Conference Papers h044135, International Water Management Institute.
    17. Huy, Hoang Trieu & Nguyen, Trung Thanh, 2019. "Cropland rental market and farm technical efficiency in rural Vietnam," Land Use Policy, Elsevier, vol. 81(C), pages 408-423.
    18. Bob Baulch & Truong Thi Kim Chuyen & Dominique Haughton & Jonathan Haughton, 2007. "Ethnic minority development in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1151-1176.
    19. Nguyen, Trung Thanh & Nguyen, Thanh-Tung & Grote, Ulrike, 2022. "Internet use, natural resource extraction and poverty reduction in rural Thailand," Ecological Economics, Elsevier, vol. 196(C).
    20. Makarius V. Mdemu & Nuru Mziray & Henning Bjornlund & Japhet J. Kashaigili, 2017. "Barriers to and opportunities for improving productivity and profitability of the Kiwere and Magozi irrigation schemes in Tanzania," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 33(5), pages 725-739, September.
    21. Tesfaye, A. & Bogale, A. & Namara, Regassa E., 2008. "The impact of small scale irrigation on household food security: the case of Filtino and Godino Irrigation Schemes in Ada Liben District, East Shoa, Ethiopia," IWMI Conference Proceedings 246410, International Water Management Institute.
    22. Santosh Kaini & Santosh Nepal & Saurav Pradhananga & Ted Gardner & Ashok K. Sharma, 2021. "Impacts of climate change on the flow of the transboundary Koshi River, with implications for local irrigation," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 37(6), pages 929-954, November.
    23. Sonali Senaratna Sellamuttu & Takeshi Aida & Ryuji Kasahara & Yasuyuki Sawada & Deeptha Wijerathna, 2014. "How Access to Irrigation Influences Poverty and Livelihoods: A Case Study from Sri Lanka," Journal of Development Studies, Taylor & Francis Journals, vol. 50(5), pages 748-768, May.
    24. Phoebe Koundouri & Céline Nauges & Vangelis Tzouvelekas, 2006. "Technology Adoption under Production Uncertainty: Theory and Application to Irrigation Technology," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(3), pages 657-670.
    25. Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-1248, September.
    26. Soumya Balasubramanya & Nicholas Brozović & Ram Fishman & Sharachchandra Lele & Jinxia Wang, 2022. "Managing irrigation under increasing water scarcity," Agricultural Economics, International Association of Agricultural Economists, vol. 53(6), pages 976-984, November.
    27. Ian McNamara & Alexandra Nauditt & Mauricio Zambrano-Bigiarini & Lars Ribbe & Hamish Hann, 2021. "Modelling water resources for planning irrigation development in drought-prone southern Chile," International Journal of Water Resources Development, Taylor & Francis Journals, vol. 37(5), pages 793-818, September.
    28. Trung Thanh Nguyen & Viet Tuan Tran & Thanh-Tung Nguyen & Ulrike Grote, 2021. "Farming efficiency, cropland rental market and income effect: evidence from panel data for rural Central Vietnam," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 48(1), pages 207-248.
    29. Greene, William, 2005. "Reconsidering heterogeneity in panel data estimators of the stochastic frontier model," Journal of Econometrics, Elsevier, vol. 126(2), pages 269-303, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Do, Manh Hung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 157-173.
    2. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Weather shocks, credit and production efficiency of rice farmers in Vietnam," TVSEP Working Papers wp-017, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    3. Manh Hung Do & Trung Thanh Nguyen & Ulrike Grote, 2022. "Is land consolidation policy a solution for rice production and agricultural transformation in Vietnam?," TVSEP Working Papers wp-028, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    4. Thanh‐Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2023. "Internet use and agricultural productivity in rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1309-1326, August.
    5. Manh Hung Do, 2023. "Saving up and diversifying income for a rainy day: Implications for households' resilience strategies and poverty," TVSEP Working Papers wp-033, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    6. Nadide YiÄŸiteli, 2023. "Production Losses Due to Technical Inefficiency: A Panel Data Analysis on the Case of BRICS-T Countries," EKOIST Journal of Econometrics and Statistics, Istanbul University, Faculty of Economics, vol. 0(38), pages 53-73, June.
    7. Thi Long Vy Le & Truong Lam Do & Huu Nhuan Nguyen & Trung Thanh Nguyen, 2023. "Farmland accumulation and rural household income: evidence from the Red River Delta region of Vietnam," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 458-469.
    8. Manh Hung Do, 2023. "The Role of Savings and Income Diversification in Households’ Resilience Strategies: Evidence from Rural Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 353-388, August.
    9. Fabio Pieri & Enrico Zaninotto, 2013. "Vertical integration and efficiency: an application to the Italian machine tool industry," Small Business Economics, Springer, vol. 40(2), pages 397-416, February.
    10. Fitsum Assefa Adela & Joachim Aurbacher & Gumataw Kifle Abebe, 2019. "Small-scale irrigation scheme governance - poverty nexus: evidence from Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 897-913, August.
    11. Tim Hartwig & Trung Thanh Nguyen, 2022. "Local infrastructure, resilience capacity and poverty in rural Southeast Asia," TVSEP Working Papers wp-029, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    12. Cheng, Shen & Bravo-Ureta, Boris E. & Zheng, Zhihao & Sun, Hao, 2017. "Land Consolidation, Productivity and Technical Efficiency: Evidence from a Cross Section of Farm Households in China," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258533, Agricultural and Applied Economics Association.
    13. Julien, Jacques C. & Bravo-Ureta, Boris E. & Rada, Nicholas E., 2023. "Gender and agricultural Productivity: Econometric evidence from Malawi, Tanzania, and Uganda," World Development, Elsevier, vol. 171(C).
    14. Jan Kluge & Sarah Lappöhn & Kerstin Plank, 2023. "Predictors of TFP growth in European countries," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 50(1), pages 109-140, February.
    15. Victor Moutinho & Mara Madaleno, 2021. "Assessing Eco-Efficiency in Asian and African Countries Using Stochastic Frontier Analysis," Energies, MDPI, vol. 14(4), pages 1-17, February.
    16. Gangopadhyay, Partha & Jain, Siddharth & Bakry, Walid, 2022. "In search of a rational foundation for the massive IT boom in the Australian banking industry: Can the IT boom really drive relationship banking?," International Review of Financial Analysis, Elsevier, vol. 82(C).
    17. Sabrina Auci & Laura Castellucci & Manuela Coromaldi, 2021. "How does public spending affect technical efficiency? Some evidence from 15 European countries," Bulletin of Economic Research, Wiley Blackwell, vol. 73(1), pages 108-130, January.
    18. Ngoc-Ninh Ho & Truong Lam Do & Dinh-Thao Tran & Trung Thanh Nguyen, 2022. "Indigenous pig production and welfare of ultra-poor ethnic minority households in the Northern mountains of Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(1), pages 156-179, January.
    19. Castiglione, Concetta & Infante, Davide & Zieba, Marta, 2023. "Public support for performing arts. Efficiency and productivity gains in eleven European countries," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    20. Massimiliano Piacenza & Gilberto Turati, 2014. "Does Fiscal Discipline Towards Subnational Governments Affect Citizens' Well‐Being? Evidence On Health," Health Economics, John Wiley & Sons, Ltd., vol. 23(2), pages 199-224, February.

    More about this item

    Keywords

    Thailand; Vietnam; Irrigation; Multidimensional poverty; Instrumental variable;
    All these keywords.

    JEL classification:

    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tvs:wpaper:wp-034. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nguyen, Trung Thanh (email available below). General contact details of provider: https://edirc.repec.org/data/iehande.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.