IDEAS home Printed from https://ideas.repec.org/p/hic/wpaper/04.html
   My bibliography  Save this paper

The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique

Author

Listed:
  • Tilman Br�ck

    (German Institute for Economic Research (DIW Berlin))

Abstract

This paper analyses the effects of activity choices on farm household income and consumption in a war-affected developing country. The study uses household survey data from Mozambique and controls for the endogeneity of activity choices with instrumental variables. War-time activity choices (such as subsistence farming) are shown to enhance welfare in the post-war period. Market and social exchange induce limited welfare gains. Cotton adoption reduces household welfare, which contradicts previous studies not controlling for endogenous activity choices. The study thus demonstrates how standard predictions of economics may become invalid in post-war economies. Furthermore, the paper identifies pro-poor reconstruction policies.

Suggested Citation

  • Tilman Br�ck, 2004. "The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique," HiCN Working Papers 04, Households in Conflict Network.
  • Handle: RePEc:hic:wpaper:04
    as

    Download full text from publisher

    File URL: https://hicn.org/wp-content/uploads/2012/06/wp04.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Blarel, Benoit, et al, 1992. "The Economics of Farm Fragmentation: Evidence from Ghana and Rwanda," The World Bank Economic Review, World Bank, vol. 6(2), pages 233-254, May.
    2. Delgado, Christopher L., 1995. "Agricultural diversification and export promotion in sub-Saharan Africa," Food Policy, Elsevier, vol. 20(3), pages 225-243, June.
    3. Adams, Richard H, Jr, 2002. "Nonfarm Income, Inequality, and Land in Rural Egypt," Economic Development and Cultural Change, University of Chicago Press, vol. 50(2), pages 339-363, January.
    4. Ellis, Frank & Mdoe, Ntengua, 2003. "Livelihoods and Rural Poverty Reduction in Tanzania," World Development, Elsevier, vol. 31(8), pages 1367-1384, August.
    5. Tschirley, David L. & Benfica, Rui M.S., 2000. "Smallholder Agriculture, Wage Labour, and Rural Poverty Alleviation in Mozambique: What Does the Evidence Tell Us?," Food Security Collaborative Working Papers 56041, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Deaton, A. & Zaidi, S., 1999. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," Papers 192, Princeton, Woodrow Wilson School - Development Studies.
    7. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
    8. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
    9. Kennedy, Eileen T. & Cogill, Bruce, 1987. "Income and nutritional effects of the commercialization of agriculture in southwestern Kenya:," Research reports 63, International Food Policy Research Institute (IFPRI).
    10. Tony Addison, 2001. "From Conflict to Reconstruction," WIDER Working Paper Series DP2001-16, World Institute for Development Economic Research (UNU-WIDER).
    11. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
    12. Zimmerman, Frederick J. & Carter, Michael R., 2003. "Asset smoothing, consumption smoothing and the reproduction of inequality under risk and subsistence constraints," Journal of Development Economics, Elsevier, vol. 71(2), pages 233-260, August.
    13. Simon Appleton, 1995. ""The rich are just like us, only richer." Poverty functions or consumption functions? Evidence from Uganda," CSAE Working Paper Series 1995-04, Centre for the Study of African Economies, University of Oxford.
    14. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank Group, vol. 17(2), pages 141-166, September.
    15. Addison, Tony (ed.), 2003. "From Conflict to Recovery in Africa," OUP Catalogue, Oxford University Press, number 9780199261031, Decembrie.
    16. Ravallion, Martin, 1996. "Issues in Measuring and Modelling Poverty," Economic Journal, Royal Economic Society, vol. 106(438), pages 1328-1343, September.
    17. repec:pri:rpdevs:deaton_zaidi_consumption is not listed on IDEAS
    18. Awudu Abdulai & Christopher L. Delgado, 1999. "Determinants of Nonfarm Earnings of Farm-Based Husbands and Wives in Northern Ghana," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 117-130.
    19. Mr. Paulo Silva Lopes & Mr. Emilio Sacerdoti, 1991. "Mozambique: Economic Rehabilitation and the Poor," IMF Working Papers 1991/101, International Monetary Fund.
    20. Frank Ellis, 2000. "The Determinants of Rural Livelihood Diversification in Developing Countries," Journal of Agricultural Economics, Wiley Blackwell, vol. 51(2), pages 289-302, May.
    21. Dercon, Stefan, 1996. "Risk, Crop Choice, and Savings: Evidence from Tanzania," Economic Development and Cultural Change, University of Chicago Press, vol. 44(3), pages 485-513, April.
    22. Corbett, Jane, 1988. "Famine and household coping strategies," World Development, Elsevier, vol. 16(9), pages 1099-1112, September.
    23. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
    24. Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
    25. Tschirley, David L. & Weber, Michael T., 1994. "Food security strategies under extremely adverse conditions: The determinants of household income and consumption in rural Mozambique," World Development, Elsevier, vol. 22(2), pages 159-173, February.
    26. Simon Appleton, 2001. "‘The Rich Are Just Like Us, Only Richer’: Poverty Functions or Consumption Functions?," Journal of African Economies, Centre for the Study of African Economies, vol. 10(4), pages 433-469.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mahamadou Roufahi Tankari, 2017. "Cash crops reduce the welfare of farm households in Senegal," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(5), pages 1105-1115, October.
    2. Ibáñez, Ana María & Moya, Andrés, 2010. "Vulnerability of Victims of Civil Conflicts: Empirical Evidence for the Displaced Population in Colombia," World Development, Elsevier, vol. 38(4), pages 647-663, April.
    3. Stifel, David, 2010. "The rural non-farm economy, livelihood strategies and household welfare," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 4(1), March.
    4. Arias, María Alejandra & Ibáñez, Ana María & Zambrano, Andrés, 2019. "Agricultural production amid conflict: Separating the effects of conflict into shocks and uncertainty," World Development, Elsevier, vol. 119(C), pages 165-184.
    5. Moya, Andrés, 2018. "Violence, psychological trauma, and risk attitudes: Evidence from victims of violence in Colombia," Journal of Development Economics, Elsevier, vol. 131(C), pages 15-27.
    6. Tilman Brück & Kati Schindler, 2008. "The Impact of Conflict and Fragility on Households: A Conceptual Framework with Reference to Widows," WIDER Working Paper Series RP2008-83, World Institute for Development Economic Research (UNU-WIDER).
    7. de Brauw, Alan, 2014. "Gender, control, and crop choice in northern Mozambique:," IFPRI discussion papers 1333, International Food Policy Research Institute (IFPRI).
    8. Jebarajakirthy, Charles & Lobo, Antonio C., 2014. "War affected youth as consumers of microcredit: An application and extension of the Theory of Planned Behaviour," Journal of Retailing and Consumer Services, Elsevier, vol. 21(3), pages 239-248.
    9. María Alejandra Arias & Ana María Ibáñez & Andrés Zambrano, 2014. "Agricultural Production Amid Conflict: The Effects of Shocks, Uncertainty, and Governance of Non-State Armed Actors," Documentos CEDE 11005, Universidad de los Andes, Facultad de Economía, CEDE.
    10. Yir-Hueih Luh & Yun-Cih Chang & Shuay-Tsyr Ho, 2022. "Crop Switching and Farm Sustainability: Empirical Evidence from Multinomial Treatment-Effect Modeling," Sustainability, MDPI, vol. 14(3), pages 1-12, January.
    11. Manuel Fern�ndez & Ana Mar�a Ib��ez & Ximena Pe�a, 2014. "Adjusting the Labour Supply to Mitigate Violent Shocks: Evidence from Rural Colombia," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1135-1155, August.
    12. Ibáñez, Ana María & Muñoz, Juan Carlos & Verwimp, Philip, 2013. "Abandoning Coffee under the Threat of Violence and the Presence of Illicit Crops. Evidence from Colombia," Documentos CEDE Series 161356, Universidad de Los Andes, Economics Department.
    13. Singh, Prakarsh, 2011. "Impact of terrorism on investment decisions of farmers: evidence from the Punjab insurgency," MPRA Paper 33328, University Library of Munich, Germany.
    14. Chikwama, Cornilius, 2010. "The role of rural off-farm employment in agricultural development among farm households in low-income countries: Evidence from Zimbabwe," Journal of Cooperatives, NCERA-210, vol. 4(1), March.
    15. Alan Brauw, 2015. "Gender, control, and crop choice in northern Mozambique," Agricultural Economics, International Association of Agricultural Economists, vol. 46(3), pages 435-448, May.
    16. Ciarli, Tommaso & Parto, Saeed & Savona, Maria, 2010. "Conflict and Entrepreneurial Activity in Afghanistan: Findings from the National Risk Vulnerability Assessment Data," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).
    17. Paul, Saumik & Shonchoy, Abu S. & Dabalen, Andrew, 2015. "Food crop diversification as a risk mitigating strategy during conflict : evidence from Cote d'Ivoire," IDE Discussion Papers 496, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    18. Tom Bundervoet, 2006. "Livestock, Activity Choices and Conflict: Evidence from Burundi," HiCN Working Papers 24, Households in Conflict Network.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tilman Brück, 2003. "Coping Strategies in Post-War Rural Mozambique," Discussion Papers of DIW Berlin 384, DIW Berlin, German Institute for Economic Research.
    2. Tilman Bruck, "undated". "Determinants of Rural Poverty in Post-War Mozambique: Evidence from a Household Survey and Implications for Government and Donor Policy," QEH Working Papers qehwps67, Queen Elizabeth House, University of Oxford.
    3. Tilman Brück, 2003. "Land Access, Tenure and Investment in Post-War Northern Mozambique," Discussion Papers of DIW Berlin 358, DIW Berlin, German Institute for Economic Research.
    4. Renata Baborska & Emilio Hernandez & Emiliano Magrini & Cristian Morales-Opazo, 2020. "The impact of financial inclusion on rural food security experience: A perspective from low-and middle-income countries," Review of Development Finance Journal, Chartered Institute of Development Finance, vol. 10(2), pages 1-18.
    5. Tilman Brück, 2003. "Investment in Land, Tenure Security and Area Farmed in Northern Mozambique," HiCN Working Papers 01, Households in Conflict Network.
    6. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    7. Gamel Abdul-Nasser Salifu, 2019. "The Political Economy Dynamics of Rural Household Income Diversification: A Review of the International Literature," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 273-290, December.
    8. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2020. "Crop diversity, household welfare and consumption smoothing under risk: Evidence from rural Uganda," World Development, Elsevier, vol. 125(C).
    9. Wouterse, Fleur, 2010. "Internal migration and rural service provision in northern Ghana:," IFPRI discussion papers 952, International Food Policy Research Institute (IFPRI).
    10. Walker, Thomas S. & Tschirley, David L. & Low, Jan W. & Tanque, M. Pequentino & Boughton, Duncan & Payongayong, Ellen M. & Weber, Michael T., 2004. "Determinants of Rural Income, Poverty, and Perceived Well-Being in Mozambique in 2001-2002," Food Security Collaborative Working Papers 56061, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. Marwan Benali & Bernhard Brümmer & Victor Afari‐Sefa, 2018. "Smallholder participation in vegetable exports and age‐disaggregated labor allocation in Northern Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 549-562, September.
    12. Holden, Stein T. & Otsuka, Keijiro, 2014. "The roles of land tenure reforms and land markets in the context of population growth and land use intensification in Africa," Food Policy, Elsevier, vol. 48(C), pages 88-97.
    13. Stefan Dercon, 2014. "Is Green Growth Good for the Poor?," The World Bank Research Observer, World Bank, vol. 29(2), pages 163-185.
    14. Rahwa Kidane & Martin Prowse & Andreas Neergaard, 2019. "Bespoke Adaptation in Rural Africa? An Asset-Based Approach from Southern Ethiopia," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 31(3), pages 413-432, July.
    15. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.
    16. Paul Makdissi & Dorothée Boccanfuso & Mathieu Audet, 2006. "The Geographic Determinants of Poverty in Albania," Cahiers de recherche 06-12, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    17. Gebrehiwot, Tagel & Teklewold, Hailemariam & Bezabih, Mintewab & Seifemichael, Robel, 2021. "Does a portfolio of consumption adjustment coping strategies erode resilience? Panel data evidence from Ethiopia," World Development Perspectives, Elsevier, vol. 23(C).
    18. Misganaw Teshager Abeje & Atsushi Tsunekawa & Enyew Adgo & Nigussie Haregeweyn & Zerihun Nigussie & Zemen Ayalew & Asres Elias & Dessalegn Molla & Daregot Berihun, 2019. "Exploring Drivers of Livelihood Diversification and Its Effect on Adoption of Sustainable Land Management Practices in the Upper Blue Nile Basin, Ethiopia," Sustainability, MDPI, vol. 11(10), pages 1-23, May.
    19. Md.Salamun Rashidin & Sara Javed & Bin Liu & Wang Jian, 2020. "Ramifications of Households’ Nonfarm Income on Agricultural Productivity: Evidence From a Rural Area of Pakistan," SAGE Open, , vol. 10(1), pages 21582440209, January.
    20. Dercon, Stefan & Christiaensen, Luc, 2011. "Consumption risk, technology adoption and poverty traps: Evidence from Ethiopia," Journal of Development Economics, Elsevier, vol. 96(2), pages 159-173, November.

    More about this item

    Keywords

    poverty; farm households; activity choices; rural development; war; reconstruction;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hic:wpaper:04. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tilman Brück or the person in charge or the person in charge or the person in charge (email available below). General contact details of provider: https://hicn.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.