IDEAS home Printed from https://ideas.repec.org/p/jic/wpaper/67.html
   My bibliography  Save this paper

Ex-post Risk Management Among Rural Filipino Farm Households

Author

Listed:
  • Murata, Akira
  • Miyazaki, Suguru

Abstract

This study investigated the factors affecting the choice of coping strategies by rural Filipino farm households in the face of both covariate (or systemic) and idiosyncratic shocks. The study, conducted by the Japan International Cooperation Agency Research Institute (JICA-RI) in 2010, surveyed farm households in villages from three provinces in the Philippines. Using a multivariate probit model, the effects of shock attributes (i.e. coverage, intensity, and frequency), as well as both household and village characteristics were analyzed. The study found that in general, rural farm households rely mainly on the strategy of dissaving/selling assets regardless of shock attributes. However, in the face of idiosyncratic shocks, there is a greater probability that these households would count on borrowing/transfer as a coping option, while in the case of more frequent covariate shocks, they are more likely to reallocate labor. The findings from this study suggest the importance of the following factors in mitigating vulnerability and enhancing resilience: helping the farmers diversify sources of income and redistributing land ownership, improving agricultural infrastructure, and developing social insurance and social networks. For that purpose, there is a need for continuous agrarian reform including support for improvements in the agricultural infrastructure as well as for the further development of social protection.

Suggested Citation

  • Murata, Akira & Miyazaki, Suguru, 2014. "Ex-post Risk Management Among Rural Filipino Farm Households," Working Papers 67, JICA Research Institute.
    • Handle: RePEc:jic:wpaper:67
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10685/129
    Download Restriction: no
    File URL: https://jicari.repo.nii.ac.jp/?action=repository_uri&item_id=676&file_id=9&file_no=1
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Israel, Danilo C. & Briones, Roehlano M., 2012. "Impacts of Natural Disasters on Agriculture, Food Security, and Natural Resources and Environment in the Philippines," Discussion Papers DP 2012-36, Philippine Institute for Development Studies.
    2. Raghbendra Jha & Woojin Kang & Hari K. Nagarajan & Kailash C. Pradhan, 2012. "Vulnerability and Responses to Risk in Rural India," ASARC Working Papers 2012-05, The Australian National University, Australia South Asia Research Centre.
    3. Sonit Singla, 2012. "Integrated risk management in agriculture: an inductive research," Journal of Risk Finance, Emerald Group Publishing, vol. 13(3), pages 199-214, May.
    4. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    5. Carol Newman & Fiona Wainwright, 2011. "Income Shocks and Household Risk-Coping Strategies: Evidence from Rural Vietnam," The Institute for International Integration Studies Discussion Paper Series iiisdp358, IIIS.
    6. Domingo, Sonny N. & Reyes, Celia M., 2009. "Crop Insurance: Security for Farmers and Agricultural Stakeholders in the Face of Seasonal Climate Variability," Discussion Papers DP 2009-12, Philippine Institute for Development Studies.
    7. Morduch, Jonathan, 1999. "Between the State and the Market: Can Informal Insurance Patch the Safety Net?," The World Bank Research Observer, World Bank, vol. 14(2), pages 187-207, August.
    8. Md. Shafiul Azam & Katsushi S. Imai, 2012. "Measuring Households' Vulnerability to Idiosyncratic and Covariate Shocks – the case of Bangladesh," Discussion Paper Series DP2012-02, Research Institute for Economics & Business Administration, Kobe University.
    9. Domingo, Sonny N. & Gonzales, Kathrina G. & Mina, Christian D. & Reyes, Celia M., 2009. "Climate Variability, Seasonal Climate Forecast, and Corn Farming in Isabela, Philippines: a Farm and Household Level Analysis," Discussion Papers DP 2009-06, Philippine Institute for Development Studies.
    10. Catherine Porter, 2012. "Shocks, Consumption and Income Diversification in Rural Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 48(9), pages 1209-1222, September.
    11. World Bank & Food and Agriculture Organization & International Fund for Agricultural Development, 2009. "Gender in Agriculture Sourcebook [Agricultura y desarrollo rural : manual sobre género en agricultura]," World Bank Publications - Books, The World Bank Group, number 6603.
    12. Udry, Christopher, 1995. "Risk and Saving in Northern Nigeria," American Economic Review, American Economic Association, vol. 85(5), pages 1287-1300, December.
    13. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June.
    14. Stefan Dercon & Pramila Krishnan, 2000. "Vulnerability, seasonality and poverty in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 25-53.
    15. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," Stata Journal, StataCorp LP, vol. 3(3), pages 278-294, September.
    16. Celia M. Reyes & Sonny N. Domingo & Christian D. Mina & Kathrina G. Gonzales, 2009. "Climate Variability, SCF, and Corn Farming in Isabela, Philippines : a Farm and Household Level Analysis," Development Economics Working Papers 22689, East Asian Bureau of Economic Research.
    17. World Bank, 2013. "World Development Indicators 2013," World Bank Publications - Books, The World Bank Group, number 13191.
    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. Ndubuisi Obeka Chukwu & Jude Okechukwu Chukwu, 2023. "Drivers of Households’ off-the-farm Income Diversification Patterns in Nigeria: Panel Evidence Using General Household Survey Data," Review of Development and Change, , vol. 28(1), pages 67-89, June.
    2. Sènakpon F. A. Dedehouanou & John McPeak, 2018. "Diversify more or less? Household resilience and food security in rural Nigeria," Working Papers PMMA 2018-01, PEP-PMMA.

    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. Stefan Dercon & Pramila Krishnan, 2003. "Food aid and informal insurance," CSAE Working Paper Series 2003-01, Centre for the Study of African Economies, University of Oxford.
    2. Günther, Isabel & Harttgen, Kenneth, 2009. "Estimating Households Vulnerability to Idiosyncratic and Covariate Shocks: A Novel Method Applied in Madagascar," World Development, Elsevier, vol. 37(7), pages 1222-1234, July.
    3. Kenneth Harttgen & Isabel Günther, 2007. "Estimating Vulnerability to Covariate and Idiosyncratic Shocks," Ibero America Institute for Econ. Research (IAI) Discussion Papers 154, Ibero-America Institute for Economic Research.
    4. Thang T. Vo, 2024. "Adverse shocks, vulnerability, and coping by rural households in Vietnam," Development Policy Review, Overseas Development Institute, vol. 42(4), July.
    5. Christiaensen, Luc J.M. & Boisvert, Richard N., 2000. "On Measuring Household Food Vulnerability: Case Evidence from Northern Mali," Working Papers 127676, Cornell University, Department of Applied Economics and Management.
    6. Harttgen, Kenneth & Günther, Isabel, 2006. "Households' Vulnerability to Covariate and Idiosyncratic Shocks," Proceedings of the German Development Economics Conference, Berlin 2006 10, Verein für Socialpolitik, Research Committee Development Economics.
    7. Raghbendra Jha & Hari K. Nagarajan & Woojin Kang & Kailash C. Pradhan, 2014. "Panchayats and Household Vulnerability in Rural India," ASARC Working Papers 2014-08, The Australian National University, Australia South Asia Research Centre.
    8. Eoin McGuirk & Marshall Burke, 2020. "The Economic Origins of Conflict in Africa," Journal of Political Economy, University of Chicago Press, vol. 128(10), pages 3940-3997.
    9. Montalbano, Pierluigi, 2011. "Trade Openness and Developing Countries' Vulnerability: Concepts, Misconceptions, and Directions for Research," World Development, Elsevier, vol. 39(9), pages 1489-1502, September.
    10. Klasen, Stephan & Lechtenfeld, Tobias & Povel, Felix, 2015. "A Feminization of Vulnerability? Female Headship, Poverty, and Vulnerability in Thailand and Vietnam," World Development, Elsevier, vol. 71(C), pages 36-53.
    11. Sayema Haque Bidisha & Tanveer Mahmood & Md. Biplob Hossain, 2021. "Assessing Food Poverty, Vulnerability and Food Consumption Inequality in the Context of COVID-19: A Case of Bangladesh," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 187-210, May.
    12. Masako Hasegawa, 2017. "Risk-Coping Measures against Health Shocks during the Process of Penetration of Health Insurance in Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 31(2), pages 139-164, June.
    13. Stefan Dercon, 2002. "Income Risk, Coping Strategies, and Safety Nets," The World Bank Research Observer, World Bank, vol. 17(2), pages 141-166, September.
    14. Tomoki Fujii, 2016. "Concepts and measurement of vulnerability to poverty and other issues: a review of literature," Chapters, in: Jacques Silber & Guanghua Wan (ed.), The Asian ‘Poverty Miracle’, chapter 3, pages 53-83, Edward Elgar Publishing.
    15. Ethan Ligon & Laura Schechter, 2002. "Measuring Vulnerability: The Director's Cut," WIDER Working Paper Series DP2002-86, World Institute for Development Economic Research (UNU-WIDER).
    16. Anh Thu Quang Pham & Pundarik Mukhopadhaya & Ha Vu, 2021. "Estimating poverty and vulnerability to monetary and non-monetary poverty: the case of Vietnam," Empirical Economics, Springer, vol. 61(6), pages 3125-3177, December.
    17. Kurosaki, Takashi & 黒崎, 卓, 2010. "Targeting the Vulnerable and the Choice of Vulnerability Measures: Review and Application to Pakistan," PRIMCED Discussion Paper Series 1, Institute of Economic Research, Hitotsubashi University.
    18. Azomahou T.T. & Yitbarek E., 2015. "Poverty persistence and informal risk management: Micro evidence from urban Ethiopia," MERIT Working Papers 2015-006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    19. Luc J. Christiaensen & Kalanidhi Subbarao, 2005. "Towards an Understanding of Household Vulnerability in Rural Kenya," Journal of African Economies, Centre for the Study of African Economies, vol. 14(4), pages 520-558, December.
    20. Stefan Dercon & Pramila Krishnan, 2003. "Risk Sharing and Public Transfers," Economic Journal, Royal Economic Society, vol. 113(486), pages 86-94, March.

    More about this item

    Keywords

    Risk ; vulnerability ; coping strategies ; covariate and idiosyncratic shocks ; Philippines;
    All these keywords.

    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:jic:wpaper:67. 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: Japan International Cooperation Agency Library (email available below). General contact details of provider: https://edirc.repec.org/data/jicgvjp.html .

    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.