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Non-Traditional Exports, Traditional Constraints; the Adoption and Diffusion of Cash Crops among Smallholders in Guatemala

Author

Listed:
  • Calogero Carletto

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Angeli Kirk

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Paul Winters

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

  • Benjamin Davis

    (Agricultural and Development Economics Division, Food and Agriculture Organization)

Abstract

This paper uses a duration analysis based on adoption data spanning over 25 years from six communities in the Central Highlands of Guatemala to explore how household characteristics and external trends play into both the adoption and diffusion processes of non-traditional exports among smallholders. Adoption was initially widespread and rapid, which led NTX to be hailed as a pro-poor success, reaching all but the smallest landholders. However, over time, more than two-thirds of adopters eventually dropped out from NTX production. Based on the analysis, NTX production appeared to have delivered less prosperity to adopters than initially promised. Primarily better-endowed farmers were able to overcome the increasingly adverse conditions and, in the long-terms, institutions and policy interventions do not appear to have mitigated these difficulties for less-endowed farmers. While poor farmers may be enticed into entering into NTX markets when conditions are favorable, they may lack the capacity to overcome difficulties that inevitably arise in complex types of cultivations and in highly variable global agricultural markets. Governmental and non-governmental organizations can attempt to mitigate these difficulties, but market forces may overwhelm these efforts, with poorer adopters still unable to compete in global markets.

Suggested Citation

  • Calogero Carletto & Angeli Kirk & Paul Winters & Benjamin Davis, 2007. "Non-Traditional Exports, Traditional Constraints; the Adoption and Diffusion of Cash Crops among Smallholders in Guatemala," Working Papers 07-03, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).
  • Handle: RePEc:fao:wpaper:0703
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    References listed on IDEAS

    as
    1. Carletto, Calogero & de Janvry, Alain & Sadoulet, Elisabeth, 1999. "Sustainability in the Diffusion of Innovations: Smallholder Nontraditional Agro-Exports in Guatemala," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 345-369, January.
    2. Calogero Carletto, 2000. "Nontraditional crops and land accumulation among Guatemalan smallholders," FCND discussion papers 80, International Food Policy Research Institute (IFPRI).
    3. Michael R. Rahm & Wallace E. Huffman, 1984. "The Adoption of Reduced Tillage: The Role of Human Capital and Other Variables," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 66(4), pages 405-413.
    4. Leggesse Dadi & Michael Burton & Adam Ozanne, 2004. "Duration Analysis of Technological Adoption in Ethiopian Agriculture," Journal of Agricultural Economics, Wiley Blackwell, vol. 55(3), pages 613-631.
    5. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    6. Kebede, Yohannes & Gunjal, Kisan & Coffin, Garth, 1990. "Adoption of New Technologies in Ethiopian Agriculture: The Case of Tegulet-Bulga District, Shoa Province," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 4(1), April.
    7. Winters, Paul & Crissman, Charles C. & Espinosa, Patricio, 2004. "Inducing the adoption of conservation technologies: lessons from the Ecuadorian Andes," Environment and Development Economics, Cambridge University Press, vol. 9(05), pages 695-719, October.
    8. Kebede, Yohannes & Gunjal, Kisan & Coffin, Garth, 1990. "Adoption of new technologies in Ethiopian agriculture: The case of Tegulet-Bulga district Shoa province," Agricultural Economics, Blackwell, vol. 4(1), pages 27-43, April.
    9. Asfaw, Abay & Admassie, Assefa, 2004. "The role of education on the adoption of chemical fertiliser under different socioeconomic environments in Ethiopia," Agricultural Economics, Blackwell, vol. 30(3), pages 215-228, May.
    10. von Braun, Joachim & Hotchkiss, David & Immink, Maarten D. C., 1989. "Nontraditional export crops in Guatemala: effects on production, consumption, and nutrition," Research reports 73, International Food Policy Research Institute (IFPRI).
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    Cited by:

    1. Christin Schipmann & Matin Qaim, 2010. "Spillovers from modern supply chains to traditional markets: product innovation and adoption by smallholders," Agricultural Economics, International Association of Agricultural Economists, vol. 41(3-4), pages 361-371, May.
    2. Kasirye, Ibrahim, 2013. "Constraints to Agricultural Technology Adoption in Uganda: Evidence from the 2005/06-2009/10 Uganda National Panel Survey," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 8(2), August.

    More about this item

    Keywords

    Non traditional exports; Guatemala; small holders; adoption; globalization.;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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