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Micro insights on the pathways to agricultural transformation: Comparative evidence from Southeast Asia and Sub-Saharan Africa

Author

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  • Amare, Mulubrhan
  • Parvathi, Priyanka
  • Nguyen, Trung Thanh

Abstract

Most studies of agricultural transformation document the impact of agricultural income growth on macroeconomic indicators of development. Much less is known about the micro-scale changes within the farming sector that signal a transformation precipitated by agricultural income growth. This study provides a comparative analysis of the patterns of micro-level changes that occur among small-holder farmers in Uganda and Malawi in Sub-Saharan Africa (SSA), and Thailand and Vietnam in Southeast Asia (SEA). Our analysis provides several important insights on agricultural transformation in these two regions. First, agricultural income in all examined countries is vulnerable to changes in precipitation and temperature, an effect that is nonlinear and asymmetric. SSA countries are more vulnerable to these weather changes. Second, exogenous increases in agricultural income in previous years improve non-farm income and trigger a change in labor allocation within the rural sector in SEA. However, this is opposite in SSA where the increase in agricultural income reduces non-farm income, indicating a substitution effect between farm and non-farm sectors. These findings reveal clear agricultural transformation driven by agricultural income in SEA, but no similar evidence in SSA.

Suggested Citation

  • Amare, Mulubrhan & Parvathi, Priyanka & Nguyen, Trung Thanh, 2022. "Micro insights on the pathways to agricultural transformation: Comparative evidence from Southeast Asia and Sub-Saharan Africa," IFPRI discussion papers 2165, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:2165
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    File URL: https://hdl.handle.net/10568/127820
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    2. Abebayehu Girma Geffersa, 2023. "Agricultural productivity, land use intensification and rural household welfare: evidence from Ethiopia," Agrekon, Taylor & Francis Journals, vol. 62(3-4), pages 309-327, October.
    3. Sabine Liebenehm & Huong Jaretzky & Hermann Waibel, 2023. "Extreme weather and agricultural management decisions among smallholder farmers in rural Thailand and Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 54(5), pages 593-622, September.
    4. Do, Manh Hung & Nguyen, Trung Thanh, 2024. "Impact of crop commercialization on smallholder farmers’ resilience to shocks: Evidence from panel data for rural Southeast Asia," Food Policy, Elsevier, vol. 128(C).
    5. Nwagboso, Chibuzo & Andam, Kwaw S. & Amare, Mulubrhan & Bamiwuye, Temilolu & Fasoranti, Adetunji, 2024. "The economic importance of cowpea in Nigeria trends and Implications for achieving agri-food system transformation," IFPRI discussion papers 2241, International Food Policy Research Institute (IFPRI).
    6. Thi Long Vy Le & Truong Lam Do & Huu Nhuan Nguyen & Trung Thanh Nguyen, 2023. "Farmland accumulation and rural household income: evidence from the Red River Delta region of Vietnam," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 458-469.
    7. Amare, Mulubrhan & Balana, Bedru, 2023. "Climate change, income sources, crop mix, and input use decisions: Evidence from Nigeria," Ecological Economics, Elsevier, vol. 211(C).
    8. Manh Hung Do, 2023. "Saving up and diversifying income for a rainy day: Implications for households' resilience strategies and poverty," TVSEP Working Papers wp-033, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    9. Cong Pan & Shi Min & Hermann Waibel, 2025. "How does agricultural transformation affect the household food self-sufficiency of smallholders in the upper Mekong region, Southwest China?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 17(1), pages 231-255, February.

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