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Conditional Cash Transfers and Agricultural Production: Lessons from the Oportunidades Experience in Mexico

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  • Jessica Erin Todd
  • Paul Winters
  • Tom Hertz

Abstract

This paper explores whether cash transfer programmes conditioned on human capital outcomes can influence agricultural production. Programme impact on food consumption from own production, land use, livestock ownership, and agricultural spending are evaluated using first difference and weighted estimators, in which weights are constructed from propensity scores. The programme is found to increase the value and variety of food consumed from own production and to increase land use, livestock ownership and crop spending. Impact estimates are found to differ across land use categories and PROCAMPO participation. Results support the hypothesis that transfers influence agricultural production and impacts are greater for households invested in agriculture.

Suggested Citation

  • Jessica Erin Todd & Paul Winters & Tom Hertz, 2010. "Conditional Cash Transfers and Agricultural Production: Lessons from the Oportunidades Experience in Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 39-67.
  • Handle: RePEc:taf:jdevst:v:46:y:2010:i:1:p:39-67
    DOI: 10.1080/00220380903197945
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    References listed on IDEAS

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    1. Keisuke Hirano & Guido W. Imbens & Geert Ridder, 2003. "Efficient Estimation of Average Treatment Effects Using the Estimated Propensity Score," Econometrica, Econometric Society, vol. 71(4), pages 1161-1189, July.
    2. Paul J. Gertler & Sebastian W. Martinez & Marta Rubio-Codina, 2012. "Investing Cash Transfers to Raise Long-Term Living Standards," American Economic Journal: Applied Economics, American Economic Association, vol. 4(1), pages 164-192, January.
    3. Skoufias, Emmanuel, 2005. "PROGRESA and its impacts on the welfare of rural households in Mexico:," Research reports 139, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Alderman, Harold & Yemtsov, Ruslan, 2012. "Productive role of safety nets : background paper for the World Bank 2012-2022 social protection and labor strategy," Social Protection and Labor Policy and Technical Notes 67609, The World Bank.
    2. Craig Johnson & Hari Bansha Dulal & Martin Prowse & Krishna Krishnamurthy & Tom Mitchell, 2013. "Social Protection and Climate Change: Emerging Issues for Research, Policy and Practice," Development Policy Review, Overseas Development Institute, vol. 31, pages 2-18, November.
    3. Fitz, Dylan, 2013. "Development Chutes and Ladders: A Joint Impact Evaluation of Asset and Cash Transfers in Brazil," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150254, Agricultural and Applied Economics Association.
    4. repec:eee:wdevel:v:99:y:2017:i:c:p:42-59 is not listed on IDEAS
    5. Naila Kabeer & Hugh Waddington, 2015. "Economic impacts of conditional cash transfer programmes: a systematic review and meta-analysis," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 7(3), pages 290-303, September.
    6. Karamba, Wendy R. & Quiñones, Esteban J. & Winters, Paul, 2011. "Migration and food consumption patterns in Ghana," Food Policy, Elsevier, vol. 36(1), pages 41-53, February.
    7. Cavatassi, Ramina & González-Flores, Mario & Winters, Paul & Andrade-Piedra, Jorge & Espinosa, Patricio & Thiele, Graham, 2016. "Linking smallholders to the new agricultural economy: The case of the plataformas de concertación in Ecuador," IFPRI book chapters,in: Innovation for inclusive value-chain development: Successes and challenges, chapter 12, pages 375-410 International Food Policy Research Institute (IFPRI).
    8. Kishore, Avinash & Joshi, Pramod K. & Pandey, Divya, 2015. "Droughts, Distress and a Conditional Cash Transfer Program to Mitigate the Impact of Droughtin Bihar, India," 2015 Conference, August 9-14, 2015, Milan, Italy 212009, International Association of Agricultural Economists.
    9. Stella Luz A. Quimbo & Joseph J. Capuno & Aleli D. Kraft & Rhea Molato & Carlos Tan, Jr., 2015. "Where does the money go? Assessing the expenditure and income effects of the Philippines' Conditional Cash Transfer Program," UP School of Economics Discussion Papers 201502, University of the Philippines School of Economics.
    10. R. Wendy Karamba & Paul C. Winters, 2015. "Gender and agricultural productivity: implications of the Farm Input Subsidy Program in Malawi," Agricultural Economics, International Association of Agricultural Economists, vol. 46(3), pages 357-374, May.
    11. John Maluccio, 2010. "The Impact of Conditional Cash Transfers on Consumption and Investment in Nicaragua," Journal of Development Studies, Taylor & Francis Journals, vol. 46(1), pages 14-38.
    12. Ambler, Kate & de Brauw, Alan & Godlonton, Susan, 2017. "Cash transfers and management advice for agriculture: Evidence from Senegal:," IFPRI discussion papers 1659, International Food Policy Research Institute (IFPRI).
    13. Ryan Nehring, 2012. "Linking Social Protection and Agricultural Production: The Case of Mexico," Policy Research Brief 21, International Policy Centre for Inclusive Growth.
    14. Lara Cockx & Nathalie Francken, 2016. "Evolution and Impact of EU Aid for Food and Nutrition Security: A Review," FOODSECURE Working papers 47, LEI Wageningen UR.
    15. Romina Cavatassi & Mario González & Paul Winters & Jorge Andrade-Piedra & Graham Thiele & Patricio Espinosa, 2009. "Linking Smallholders to the New Agricultural Economy: An Evaluation of the Plataformas Program in Ecuador," Working Papers 09-06, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
    16. Solomon Asfaw & Silvio Daidone & Benjamin Davis & Josh Dewbre & Alessandro Romeo & Paul Winters & Katia Covarrubias & Habiba Djebbari, 2012. "Analytical Framework for Evaluating the Productive Impact of Cash Transfer Programmes on Household Behaviour ? Methodological Guidelines for the From Protection to Production Project," Working Papers 101, International Policy Centre for Inclusive Growth.
    17. Sloan, Sean, 2015. "The development-driven forest transition and its utility for REDD+," Ecological Economics, Elsevier, vol. 116(C), pages 1-11.
    18. Leonardo Corral & Maja Schling & Cassandra Rogers & Janice Cumberbatch & Fabian Hinds & Naijun Zhou & Michele H. Lemay, 2016. "The Impact of Coastal Infrastructure Improvements on Economic Growth: Evidence from Barbados," IDB Publications (Working Papers) 95978, Inter-American Development Bank.
    19. Yi, Fujin & Sun, Dingqiang & Zhou, Yingheng, 2015. "Grain subsidy, liquidity constraints and food security—Impact of the grain subsidy program on the grain-sown areas in China," Food Policy, Elsevier, vol. 50(C), pages 114-124.
    20. Cristina Cirillo & Giorgia Giovannetti, 2018. "Do Cash Transfers Trigger Investment? Evidence for Peru," Development Working Papers 433, Centro Studi Luca d'Agliano, University of Milano, revised 29 Jan 2018.
    21. Yi, Fujin & Sun, Dingqiang, 2014. "Grain Subsidy, Liquidity Constraints and Food security—Impact of the Grain Subsidy Program on the Grain-Sown Areas in China," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169779, Agricultural and Applied Economics Association.
    22. Leonardo Corral & Maja Schling & Cassandra Rogers & Janice Cumberbatch & Fabian Hinds & Naijun Zhou & Michele H. Lemay, 2016. "The Impact of Coastal Infrastructure Improvements on Economic Growth: Evidence from Barbados," IDB Publications (Working Papers) 7860, Inter-American Development Bank.

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