The effects of natural disasters on farm household income and expenditures: A study on rice farmers in Bangladesh
Although millions of households in the world depend on rice cultivation for income and employment, volatility in rice income and negative income shocks caused by crop failure stem from natural disasters, an almost regular phenomenon in rice farming in Asia and Africa. Income volatility may force households in developing countries to lower their expenditures on health and education, as the literature suggests. A drastic reduction in education and health expenditures due to negative income shocks can affect children’s health and education, and hence human capital formation in the long run, in developing countries. Using the Household Income and Expenditure Survey (HIES) data from the government of Bangladesh and applying the “difference-in-difference” estimation method in a natural experimental setting, this article reveals that in the face of a loss in income caused by a tropical cyclone that hit the coastal region in May 2009, cyclone-affected rice farmers spent less on their children’s education. This study suggests active intervention to ensure stable income to make schooling expenditures less elastic with rice income to ensure human capital development in agriculture-dependent countries in the long run.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wilson, Clevo & Tisdell, Clement A., 2002. "OLS and Tobit Estimates: When is Substitution Defensible Operationally?," Economic Theory, Applications and Issues Working Papers 90519, University of Queensland, School of Economics.
- Emla Fitzsimons, 2007. "The Effects of Risk on Education in Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 56, pages 1-25.
- Shahidur R. Khandker, 2007. "Coping with flood: role of institutions in Bangladesh," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 169-180, 03.
- Sawada, Yasuyuki & Lokshin, Michael, 2009.
"Obstacles to school progression in rural Pakistan: An analysis of gender and sibling rivalry using field survey data,"
Journal of Development Economics,
Elsevier, vol. 88(2), pages 335-347, March.
- Yasuyuki Sawada & Michael Lokshin, 2007. "Obstacles to School Progression in Rural Pakistan: An Analysis of Gender and Sibling Rivalry Using Field Survey Data," CIRJE F-Series CIRJE-F-484, CIRJE, Faculty of Economics, University of Tokyo.
- Foster, Andrew D, 1995. "Prices, Credit Markets and Child Growth in Low-Income Rural Areas," Economic Journal, Royal Economic Society, vol. 105(430), pages 551-70, May.
- Sarker, Md. Abdur Rashid & Alam, Khorshed & Gow, Jeff, 2012. "Exploring the relationship between climate change and rice yield in Bangladesh: An analysis of time series data," Agricultural Systems, Elsevier, vol. 112(C), pages 11-16.
- Ly, Proyuth & Jensen, Lars Stoumann & Bruun, Thilde Bech & Rutz, Dominik & de Neergaard, Andreas, 2012. "The System of Rice Intensification: Adapted practices, reported outcomes and their relevance in Cambodia," Agricultural Systems, Elsevier, vol. 113(C), pages 16-27.
- Skoufias, Emmanuel, 2003. "Economic Crises and Natural Disasters: Coping Strategies and Policy Implications," World Development, Elsevier, vol. 31(7), pages 1087-1102, July.
- Hanan G. Jacoby & Emmanuel Skoufias, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," Review of Economic Studies, Oxford University Press, vol. 64(3), pages 311-335.
- Thomas, Duncan & Beegle, Kathleen & Frankenberg, Elizabeth & Sikoki, Bondan & Strauss, John & Teruel, Graciela, 2004. "Education in a crisis," Journal of Development Economics, Elsevier, vol. 74(1), pages 53-85, June.
- Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
- Ganesh-Kumar, A. & Prasad, Sanjay K. & Pullabhotla, Hemant, 2012. "Supply and Demand for Cereals in Bangladesh: 2010â€“2030:," IFPRI discussion papers 1186, International Food Policy Research Institute (IFPRI).
- Duryea, Suzanne & Lam, David & Levison, Deborah, 2007. "Effects of economic shocks on children's employment and schooling in Brazil," Journal of Development Economics, Elsevier, vol. 84(1), pages 188-214, September.
When requesting a correction, please mention this item's handle: RePEc:eee:agisys:v:121:y:2013:i:c:p:43-52. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.