Development in the Midst of Drought: Evaluating an Agricultural Extension and Credit Program in Nicaragua
This essay is an evaluation of year one of the Rural Business Development (RBD) program for small rice farmers in León, Nicaragua. The RBD program is administered by the Millennium Challenge Corporation, and is designed to deliver agricultural extension advice and affordable credit in the form of inputs to farm households. This essay estimates the average impact of the program on rice yields and revenues utilizing inverse propensity score weighting combined with linear regression. In conducting statistical inference, it also accounts for the fact that agricultural outcomes are likely correlated over space in a small area such as the one studied here. The results suggest that the program had no impact on average, likely due to the presence of a severe drought during the 2008 – 2009 rice growing season, but that poorer households may have done better than their wealthier counterparts. This does not account for program costs, which when factored in would likely make the overall net benefit of the program negative. There may very well be long term benefits to exploiting extension advice and better access to credit created by the RBD program, and the it appears to have shielded poorer farmers somewhat from the impact of the drought. But the results highlight the danger of introducing programs aimed at raising productivity and incomes in areas subject to system unanticipated shocks. Incorporating risk management techniques or insurance against systemic risk into extension programs may improve welfare and encourage broader participation in agricultural productivity programs going forward.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202|
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
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.:
- Nava Ashraf & Xavier Giné & Dean Karlan, 2008.
"Finding Missing Markets (and a disturbing epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya,"
967, Economic Growth Center, Yale University.
- Nava Ashraf & Xavier Giné & Dean Karlan, 2009. "Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 973-990.
- Ashraf, Nava & Giné, Xavier & Karlan, Dean S., 2009. "Finding Missing Markets (and a disturbing epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya," CEPR Discussion Papers 7133, C.E.P.R. Discussion Papers.
- Ashraf, Nava & Gine, Xavier & Karlan, Dean, 2008. "Finding missing markets (and a disturbing epilogue) : evidence from an export crop adoption and marketing intervention in Kenya," Policy Research Working Paper Series 4477, The World Bank.
- Ashraf, Nava & Gine, Xavier & Karlan, Dean, 2008. "Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya," Working Papers 56, Yale University, Department of Economics.
- Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
- Guido W. Imbens, 2004.
"Nonparametric Estimation of Average Treatment Effects Under Exogeneity: A Review,"
The Review of Economics and Statistics,
MIT Press, vol. 86(1), pages 4-29, February.
- Guido W. Imbens, 2003. "Nonparametric Estimation of Average Treatment Effects under Exogeneity: A Review," NBER Technical Working Papers 0294, National Bureau of Economic Research, Inc.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053, November.
- Guirkinger, Catherine & Boucher, Stephen R., 2007.
"Credit Constraints and Productivity in Peruvian Agriculture,"
6882, University of California, Davis, Department of Agricultural and Resource Economics.
- Catherine Guirkinger & Stephen R. Boucher, 2008. "Credit constraints and productivity in Peruvian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 295-308, November.
- Godtland, Erin M & Sadoulet, Elisabeth & De Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2004.
"The Impact of Farmer Field Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes,"
Economic Development and Cultural Change,
University of Chicago Press, vol. 53(1), pages 63-92, October.
- Godtland, Erin & Sadoulet, Elisabeth & de Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2003. "The impact of farmer-field-schools on knowledge and productivity : a study of potato farmers in the Peruvian Andes," CUDARE Working Paper Series 963, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Godtland, Erin & Sadoulet, Elisabeth & de Janvry, Alain & Murgai, Rinku & Ortiz, Oscar, 2003. "The Impact of Farmer-Field-Schools on Knowledge and Productivity: A Study of Potato Farmers in the Peruvian Andes," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt8hp835xx, Department of Agricultural & Resource Economics, UC Berkeley.
- Gershon Feder & Lawrence J. Lau & Justin Y. Lin & Xiaopeng Luo, 1990. "The Relationship between Credit and Productivity in Chinese Agriculture: A Microeconomic Model of Disequilibrium," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 72(5), pages 1151-1157.
- Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng Luo, 1991. "Credit's effect on productivity in Chinese agriculture : a microeconomic model of disequilibrium," Policy Research Working Paper Series 571, The World Bank.
- Jenish, Nazgul & Prucha, Ingmar R., 2009. "Central limit theorems and uniform laws of large numbers for arrays of random fields," Journal of Econometrics, Elsevier, vol. 150(1), pages 86-98, May.
- Kim, Min Seong & Sun, Yixiao, 2011. "Spatial heteroskedasticity and autocorrelation consistent estimation of covariance matrix," Journal of Econometrics, Elsevier, vol. 160(2), pages 349-371, February.
- Jeffrey M. Wooldridge, 2004.
"Inverse probability weighted estimation for general missing data problems,"
CeMMAP working papers
CWP05/04, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Wooldridge, Jeffrey M., 2007. "Inverse probability weighted estimation for general missing data problems," Journal of Econometrics, Elsevier, vol. 141(2), pages 1281-1301, December.
- Pedro Cerdán-Infantes & Alessandro Maffioli & Diego Ubfal, 2008. "The Impact of Agricultural Extension Services: The Case of Grape Production in Argentina," OVE Working Papers 0508, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
- Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
- Foltz, Jeremy D., 2004. "Credit market access and profitability in Tunisian agriculture," Agricultural Economics, Blackwell, vol. 30(3), pages 229-240, May.
- Kelejian, Harry H. & Prucha, Ingmar R., 2007. "HAC estimation in a spatial framework," Journal of Econometrics, Elsevier, vol. 140(1), pages 131-154, September.
When requesting a correction, please mention this item's handle: RePEc:ags:aaea11:108723. 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: (AgEcon Search)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.