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Non-traditional crops, traditional constraints : long-term welfare impacts of export crop adoption among guatemalan smallholders

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  • Carletto, Calogero
  • Kilic, Talip
  • Kirk, Angeli

Abstract

This study documents the long-term welfare effects of household non-traditional agricultural export (NTX) adoption. The analysis uses a unique panel dataset, which spans the period 1985-2005, and employs difference-in-differences estimation to investigate the long-term impact of non-traditional agricultural export adoption on changes in household consumption status and asset position in the Central Highlands of Guatemala. Given the heterogeneity in adoption patterns, the analysis differentiates the impact estimates based on a classification of households that takes into account the timing and duration of non-traditional agricultural export adoption. The results show that while, on average, welfare levels have improved for all households irrespective of adoption status and duration, the extent of improvement has varied across groups. Long-term adopters exhibit the smallest increase in the lapse of two decades, in spite of some early gains. Conversely, early adopters who withdrew from non-traditional agricultural export production after reaping the benefits of the boom period of the 1980s are found to have fared better and shown greater improvements in durable asset position and housing conditions than any other category.

Suggested Citation

  • Carletto, Calogero & Kilic, Talip & Kirk, Angeli, 2009. "Non-traditional crops, traditional constraints : long-term welfare impacts of export crop adoption among guatemalan smallholders," Policy Research Working Paper Series 5142, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5142
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    1. Van den Broeck, Goedele & Swinnen, Johan & Maertens, Miet, 2017. "Global value chains, large-scale farming, and poverty: Long-term effects in Senegal," Food Policy, Elsevier, vol. 66(C), pages 97-107.
    2. Cristina Romero Granja & Meike Wollni, 2018. "Dynamics of smallholder participation in horticultural export chains: evidence from Ecuador," Agricultural Economics, International Association of Agricultural Economists, vol. 49(2), pages 225-235, March.
    3. Cazzuffi, Chiara & McKay, Andy & Perge, Emilie, 2020. "The impact of agricultural commercialisation on household welfare in rural Vietnam," Food Policy, Elsevier, vol. 94(C).
    4. Khonje, Makaiko & Manda, Julius & Alene, Arega D. & Kassie, Menale, 2015. "Analysis of Adoption and Impacts of Improved Maize Varieties in Eastern Zambia," World Development, Elsevier, vol. 66(C), pages 695-706.
    5. Joseph Kangmennaang & Rachel Bezner Kerr & Esther Lupafya & Laifolo Dakishoni & Mangani Katundu & Isaac Luginaah, 2017. "Impact of a participatory agroecological development project on household wealth and food security in Malawi," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(3), pages 561-576, June.
    6. Natalia Radchenko & Paul Corral & Paul Winters, 2018. "Heterogeneity of commercialization gains in the rural economy," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 131-143, January.
    7. Andy McKay & Chiara Cazzuffi & Emilie Perge, 2018. "The impact of commercialization of rice on household welfare in rural Vietnam," WIDER Working Paper Series 130, World Institute for Development Economic Research (UNU-WIDER).
    8. Hervas, Anastasia, 2021. "Mapping oil palm-related land use change in Guatemala, 2003–2019: Implications for food security," Land Use Policy, Elsevier, vol. 109(C).
    9. Ebata, Ayako & Hernandez, Manuel A., 2016. "Linking smallholder farmers to commercial markets: Evidence from nongovernmental organization training in Nicaragua:," IFPRI discussion papers 1539, International Food Policy Research Institute (IFPRI).
    10. Wood, Benjamin D.K. & Dong, Michell, 2015. "Recalling Extra Data: A Replication Study of Finding Missing Markets," 2014: Food, Resources and Conflict, December 7-9, 2014. San Diego, California 206225, International Agricultural Trade Research Consortium.
    11. Busch, Christian & Barkema, Harry, 2022. "Align or perish: social enterprise network orchestration in Sub-Saharan Africa," LSE Research Online Documents on Economics 115350, London School of Economics and Political Science, LSE Library.
    12. Anastasia Hervas & S. Ryan Isakson, 2020. "Commercial agriculture for food security? The case of oil palm development in northern Guatemala," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 12(3), pages 517-535, June.
    13. Carletto, Calogero & Corral, Paul & Guelfi, Anita, 2017. "Agricultural commercialization and nutrition revisited: Empirical evidence from three African countries," Food Policy, Elsevier, vol. 67(C), pages 106-118.
    14. Zuniga-Gonzalez, C.A & Hernandez:Munguia, J., 2010. "The New Social Projection Paradigm [El nuevo Paradigma de la Proyección Social]," MPRA Paper 111253, University Library of Munich, Germany, revised 16 Nov 2010.
    15. VAN DEN BROECK, Goedele & MAERTENS, Miet, 2016. "Horticultural exports and food security in developing countries," Working Papers 232595, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.
    16. Chiara Cazzuffi & Andy McKay & Emilie Perge, 2018. "The impact of commercialization of rice on household welfare in rural Vietnam," WIDER Working Paper Series wp-2018-130, World Institute for Development Economic Research (UNU-WIDER).
    17. Ebata, Ayako & Huttel, Silke, 2015. "Do development projects link smallholdrs to markets?," 2015 Conference, August 9-14, 2015, Milan, Italy 211583, International Association of Agricultural Economists.
    18. Busch, Christian & Barkema, Harry, 2022. "Align or perish: Social enterprise network orchestration in Sub-Saharan Africa," Journal of Business Venturing, Elsevier, vol. 37(2).
    19. Ebata, Ayako & Hernandez, Manuel A., 2017. "Linking smallholder farmers to markets on extensive and intensive margins: Evidence from Nicaragua☆," Food Policy, Elsevier, vol. 73(C), pages 34-44.
    20. Ebata, Ayako & Hüttel, Silke, 2015. "Do development projects link smallholders to markets?," GlobalFood Discussion Papers 204326, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    21. Justus Ochieng & Beatrice Knerr & George Owuor & Emily Ouma, 2020. "Food crops commercialization and household livelihoods: Evidence from rural regions in Central Africa," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 318-338, April.
    22. Stemmler, Henry & Meemken, Eva-Marie, 2023. "Greenhouse farming and employment: Evidence from Ecuador," Food Policy, Elsevier, vol. 117(C).
    23. Bachke, Maren Elise, 2019. "Do farmers’ organizations enhance the welfare of smallholders? Findings from the Mozambican national agricultural survey," Food Policy, Elsevier, vol. 89(C).
    24. Khonje, Makaiko & Mkandawire, Petros & Manda, Julius & Alene, Arega, 2015. "Analysis of adoption and impacts of improved cassava varieties," 2015 Conference, August 9-14, 2015, Milan, Italy 211842, International Association of Agricultural Economists.

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