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Spillovers from high-value agriculture for exports on land use in developing countries: evidence from Madagascar

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  • Bart Minten
  • Lalaina Randrianarison
  • Johan Swinnen

Abstract

High-value agriculture for exports is increasingly important in developing countries. In a case study of contract farming for exports of vegetables from Madagascar, strong spillover effects of these trade opportunities on land use are found to exist. Using a matched plot sampling design, the productivity of rice-the main domestically consumed staple-is shown to be two-thirds higher on fields that were contracted during the off-season for the production of vegetables. This increase in yields is linked to an increase of soil fertility due to the application of fertilizer and compost, which farmers did not use prior to the contracts. Although agricultural output goes up significantly, labor productivity stays the same, suggesting that there is greater labor absorption on existing land and the diffusion of this type of technology at a larger scale throughout Madagascar would be expected to substantially decrease incentives to deforest by increasing wages and to boost productivity of existing lands relative to newly deforested ones. Copyright 2007 International Association of Agricultural Economists.

Suggested Citation

  • Bart Minten & Lalaina Randrianarison & Johan Swinnen, 2007. "Spillovers from high-value agriculture for exports on land use in developing countries: evidence from Madagascar," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2-3), pages 265-275, September.
  • Handle: RePEc:bla:agecon:v:37:y:2007:i:2-3:p:265-275
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    2. Deininger, Klaus & Xia, Fang, 2016. "Quantifying Spillover Effects from Large Land-based Investment: The Case of Mozambique," World Development, Elsevier, pages 227-241.
    3. Ali,Daniel Ayalew & Deininger,Klaus W. & Harris,Charles Anthony Philip, 2016. "Large farm establishment, smallholder productivity, labor market participation, and resilience : evidence from Ethiopia," Policy Research Working Paper Series 7576, The World Bank.
    4. Riera, Olivia & Swinnen, Johan, 2016. "Household level spillover effects from biofuels: Evidence from castor in Ethiopia," Food Policy, Elsevier, pages 55-65.
    5. Dries, Liesbeth & Swinnen, Johan F.M., 2010. "The impact of interfirm relationships on investment: Evidence from the Polish dairy sector," Food Policy, Elsevier, pages 121-129.
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    7. Kydd, Jonathon, 2015. "Ex-post evaluation study of IFPRI’s research on high-value agriculture, 1994–2010," Impact assessments 39, International Food Policy Research Institute (IFPRI).
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    9. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, pages 700-709.
    10. Maertens, Miet & Verhofstadt, Ellen, 2013. "Horticultural exports, female wage employment and primary school enrolment: Theory and evidence from Senegal," Food Policy, Elsevier, pages 118-131.
    11. Elizaphan J.O. Rao & Matin Qaim, 2009. "Farmer participation in supermarket channels and technical efficiency: The case of vegetable production in Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 18, Courant Research Centre PEG.
    12. Rao, Elizaphan J.O. & Brümmer, Bernhard & Qaim, Matin, 2011. "Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya," Discussion Papers 113508, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    13. Trifkovic, Neda, 2015. "Vertical Coordination and Aquaculture Farm Performance: The Case of Catfish Sector in Vietnam," 2015 Conference, August 9-14, 2015, Milan, Italy 211930, International Association of Agricultural Economists.
    14. Martha Negash & Jo Swinnen, 2012. "Biofuels and Food Security: Micro-evidence from Ethiopia," LICOS Discussion Papers 31912, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    15. Deininger,Klaus W. & Xia,Fang & Mate,Aurelio & Payongayong,Ellen, 2015. "Quantifying spillover effects from large farm establishments : the case of Mozambique," Policy Research Working Paper Series 7466, The World Bank.
    16. Riera, Olivia & Swinnen, Jo, 2015. "Household level spillover effects from biofuels: Evidence from Ethiopia," 2015 Conference, August 9-14, 2015, Milan, Italy 212291, International Association of Agricultural Economists.
    17. Olivia Riera & Johan Swinnen, 2014. "Household level spillover effects from biofuels," LICOS Discussion Papers 35614, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    18. Mitiku, Fikadu & Nyssen, Jan & Maertens, Miet, 2017. "Can Coffee Certification Promote Land-sharing and Protect Forest in Ethiopia?," Working Papers 253567, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    19. Negash, Martha & Swinnen, Johan F.M., 2013. "Biofuels and food security: Micro-evidence from Ethiopia," Energy Policy, Elsevier, pages 963-976.
    20. Negash, Martha & Swinnen, Johan F.M., 2013. "Biofuels and food security: Micro-evidence from Ethiopia," Energy Policy, Elsevier, pages 963-976.
    21. Fontaine, Damien & Gaspart, Frederic & Frahan, Bruno Henry de, 2008. "Modelling the impact of private quality standards on the fresh fruit and vegetable supply chains in developing countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44378, European Association of Agricultural Economists.

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