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Globalization, Crop Choice and Property Rights in Rural Peru, 1994-2004

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Author Info
Field, Alfred J.
Field, Erica
Abstract

This paper describes the results of initial work analysing a panel of rural households in Peru between 1994 and 2004 to determine household responses to changes in relative prices of traditional versus export-oriented products. Our principal interest was to better understand how household responses to external economic shocks influenced rural welfare, income distribution and poverty. Since a large percentage of Peruvians living in poverty are located in rural areas, learning more about how these households respond to a changing external environment provides insights into the factors that influence their ability to improve their absolute and relative economic position. The results of our analysis indicate that changes in relative prices had a significant impact on the adoption of new agricultural products, and the magnitude of response was mitigated by households? degree of tenure security and access to regional and local markets. Analyses of household expenditures over the period indicate that those who adopted export crops experienced a significant growth in consumption proportional to the change in acreage devoted to exportable products, and were less likely to be classified as impoverished at the end of the period. Instrumental variables estimates suggest that this association is causal.

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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number UNU-WIDER Research Paper RP2007/72.

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Length: 32 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:unu:wpaper:rp2007-72

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Related research
Keywords: agricultural households; microeconomic; international trade; structural adjustment; technology adoption; poverty;

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  1. Bardhan, Pranab, 2006. "Globalization and rural poverty," World Development, Elsevier, vol. 34(8), pages 1393-1404, August. [Downloadable!] (restricted)
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  2. Máximo Torero & Erica Field, 2005. "Impact of Land Titles over Rural Households," OVE Working Papers 0705, Inter-American Development Bank, Office of Evaluation and Oversight (OVE). [Downloadable!]
  3. Webb, Richard & Camminati, Josefina & Thorne, Raul Leon, 2005. "Antidumping mechanisms and safeguards in Peru," Policy Research Working Paper Series 3658, The World Bank. [Downloadable!]
  4. Thorbecke, Erik, 2004. "Conceptual and Measurement Issues in Poverty Analysis," Working Papers UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  5. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March. [Downloadable!] (restricted)
  6. Olivier Cadot & Laure Dutoit & Marcelo Olarreaga, 2005. "How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.09, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
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