IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/2302.html
   My bibliography  Save this paper

Why liberalization alone has not improved agricultural productivity in Zambia : the role of asset ownership and working capital constraints

Author

Listed:
  • Deininger, Klaus
  • Olinto, Pedro

Abstract

The authors use a large panel data set from Zambia to examine factors that could explain the relatively lackluster performance of the country's agricultural sector after liberalization. Zambia's liberalization significantly opened the economy but failed to alter the structure of productionor help realize efficiency gains. They reach two main conclusions. First, not owning productive assets (in Zambia, draft animals and implements) limits improvements in agricultural productivity and household welfare. Owning oxen increases income directly, allows farmers to till their fields efficiently when rain is delayed, increases the area cultivated, and improves access to credit and fertilizer markets. Second, the authors reject the hypothesis that the application of fertilizer is unprofitable because of high input prices. Rather, fertilizer use appears to have declined because of constraints on supplies, which government intervention exacerbated instead of alleviating. (Extending the use of fertilizer to the many producers not currently using it would be profitable, but increasing the amount applied by the few producers who now have access to it would not be.) Policies to foster accumulation of the assets needed for agricultural production (including draft animals and implements) and to provide complementary public goods (education, credit, and good agricultural extension services) could greatly help reduce poverty and improve productivity.

Suggested Citation

  • Deininger, Klaus & Olinto, Pedro, 2000. "Why liberalization alone has not improved agricultural productivity in Zambia : the role of asset ownership and working capital constraints," Policy Research Working Paper Series 2302, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2302
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2000/04/19/000094946_00040605325154/Rendered/PDF/multi_page.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hattink, Wolter & Heerink, Nico & Thijssen, Geert, 1998. "Supply Response of Cocoa in Ghana: A Farm-Level Profit Function Analysis," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 7(3), pages 424-444, October.
    2. Alwang, Jeffrey & Siegel, Paul B. & Jorgensen, Steen L., 1996. "Seeking guidelines for poverty reduction in rural Zambia," World Development, Elsevier, vol. 24(11), pages 1711-1723, November.
    3. Honore, Bo E, 1992. "Trimmed LAD and Least Squares Estimation of Truncated and Censored Regression Models with Fixed Effects," Econometrica, Econometric Society, vol. 60(3), pages 533-565, May.
    4. Gourieroux, Christian & Monfort, Alain, 1993. "Simulation-based inference : A survey with special reference to panel data models," Journal of Econometrics, Elsevier, vol. 59(1-2), pages 5-33, September.
    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. Bussolo, Maurizio & Niimi, Yoko, 2006. "Do regional trade pacts benefit the poor ? An illustration from the Dominican Republic-Central American Free Trade Agreement in Nicaragua," Policy Research Working Paper Series 3850, The World Bank.
    2. Neil McCulloch & Bob Baulch & Milasoa Cherel-Robson, 2000. "Poverty, Inequality and Growth in Zambia during the 1990s," Econometrics 0004004, EconWPA.
    3. Bussolo, Maurizio & Niimi, Yoko, 2009. "Do Regional Trade Pacts Benefit the Poor? An Illustration from Dominican Republic--Central American Free Trade Agreement in Nicaragua," World Development, Elsevier, vol. 37(1), pages 146-160, January.
    4. Mellado, Aida Gonzalez, 2006. "Possibilities And Perspectives Of Integrating Household Analysis In Cge Models: The Case Of Mexico," 46th Annual Conference, Giessen, Germany, October 4-6, 2006 14970, German Association of Agricultural Economists (GEWISOLA).
    5. Klaus Abbink & Thomas Jayne & Lars Moller, 2011. "The Relevance of a Rules-based Maize Marketing Policy: An Experimental Case Study of Zambia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(2), pages 207-230.
    6. Daniel Lederman & Guido Porto, 2016. "The Price Is Not Always Right: On the Impacts of Commodity Prices on Households (and Countries)," World Bank Research Observer, World Bank Group, vol. 31(1), pages 168-197.
    7. Dorward, Andrew & Fan, Shenggen & Kydd, Jonathan & Lofgren, Hans & Morrison, Jamie & Poulton, Colin & Rao, Neetha & Smith, Laurence & Tchale, Hardwick & Thorat, Sukhadeo & Urey, Ian & Wobst, Peter, 2004. "Institutions and economic policies for pro-poor agricultural growth," DSGD discussion papers 15, International Food Policy Research Institute (IFPRI).
    8. Wobst, Peter & Thurlow, James, 2005. "The Road to Pro-Poor Growth in Zambia: Past Lessons and Future Challenges," Proceedings of the German Development Economics Conference, Kiel 2005 37, Verein für Socialpolitik, Research Committee Development Economics.
    9. Arcand, Jean-Louis & d'Hombres, Beatrice, 2006. "Testing for Separation in Agricultural Household Models and Unobservable Household-Specific Effects," MPRA Paper 1863, University Library of Munich, Germany.
    10. World Bank, 2007. "Zambia : Smallholder Agricultural Commercialization Strategy," World Bank Other Operational Studies 8039, The World Bank.
    11. Resnick, Danielle & Mason, Nicole M., 2016. "What drives input subsidy policy reform? The case of Zambia, 2002–2016," IFPRI discussion papers 1572, International Food Policy Research Institute (IFPRI).
    12. Mwangi wa Githinji & Charalampos Konstantinidis & Andrew Barenberg, 2011. "Small and as Productive : Female Headed Households and the Inverse Relationship between Land Size and Output in Kenya," UMASS Amherst Economics Working Papers 2011-31, University of Massachusetts Amherst, Department of Economics.
    13. Crawford, Eric W. & Jayne, Thomas S. & Kelly, Valerie A., 2005. "Alternative Approaches for Promoting Fertilizer Use in Africa, with Particular Reference to the Role of Fertilizer Subsidies," Staff Papers 11557, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    14. Massuanganhe, Israel Jacob, 2008. "Policies, Natural Resource Governance and Local Development," Ph.D Degree Theses 53061, University of the Free State, Department of Agricultural Economics.
    15. Chloupkova, Jarka & Bjornskov, Christian, 2001. "Reaping the Gains from Trade: Constraints and Opportunities of Agricultural Credit Markets," Unit of Economics Working papers 24189, Royal Veterinary and Agricultural University, Food and Resource Economic Institute.
    16. International Monetary Fund, 2004. "Zambia; Selected Issues and Statistical Appendix," IMF Staff Country Reports 04/160, International Monetary Fund.
    17. Gamba, Paul & Mghenyi, Elliot W., 2005. "Rural Poverty Dynamics, Agricultural Productivity and Access to Resources," Food Security Collaborative Working Papers 55165, Michigan State University, Department of Agricultural, Food, and Resource Economics.

    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:wbk:wbrwps:2302. 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: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.