Non-traditional Crops, Traditional Constraints : Long-Term Welfare Impacts of Export Crop Adoption among Guatemalan Smallholders

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.

Bibliographic Details

Main Authors:	Carletto, Calogero, Kilic, Talip, Kirk, Angeli
Language:	English
Published:	2009-11-01
Subjects:	ACCESS TO HOUSEHOLD, ACCESS TO INFRASTRUCTURE, ADVERSE EFFECTS, AGENCY PROBLEMS, AGRICULTURAL ECONOMICS, AGRICULTURAL EXPORTS, AGRICULTURAL GROWTH, AGRICULTURAL INCOMES, AGRICULTURAL INPUTS, AGRICULTURAL LAND, AGRICULTURAL PRACTICES, AGRICULTURAL PRODUCE, AGRICULTURAL SEASON, AGRICULTURAL SECTOR, AGRICULTURE, ANTI-POVERTY, ASSETS, BANKRUPTCY, BEANS, BOUNDED RATIONALITY, BROCCOLI, CARROTS, CASH CROPS, CHILD LABOR, COMMERCIALIZATION, COMPARATIVE ADVANTAGE, COMPETITIVENESS, CONSUMER PRICE INDEX, CONSUMPTION LEVELS, CONTRACT FARMING, COTTON, CROP, CROP DIVERSIFICATION, CROP LOSSES, CROP PRODUCTION, CROPS, CULTIVATION, DEVALUATION, DEVELOPMENT ECONOMICS, DEVELOPMENT STRATEGIES, DEVELOPMENT STRATEGY, DIVERSIFICATION, DURABLE GOODS, ECONOMIC SITUATION, EMPLOYMENT INCOME, EXCHANGE RATES, EXPORT COMPANIES, EXPORT CROPS, EXPORTS, EXTENSION, FAO, FARM, FARM ACTIVITIES, FARM EMPLOYMENT, FARM EMPLOYMENT OPPORTUNITIES, FARM HOUSEHOLDS, FARM INCOME, FARM INCOMES, FARM LABOR, FARM MANAGEMENT, FARM SELF-EMPLOYMENT, FARM SIZE, FARM-GATE, FARMER, FARMER GROUPS, FARMERS, FARMS, FEMALE HOUSEHOLD MEMBERS, FERTILIZER, FIXED COSTS, FOOD AVAILABILITY, FOOD COMMODITIES, FOOD CONSUMPTION, FOOD EXPENDITURES, FOOD POLICY, FOOD PRODUCTION, FOOD SECURITY, FRUITS, GDP, GENDER, HARVESTS, HORTICULTURAL PRODUCTION, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD WELFARE, HOUSING, HUMAN CAPITAL, IFPRI, INCOME, INCOME GENERATION, INCOME LEVELS, INCOMES, INTERCROPPING, INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE, INTERNATIONAL TRADE, IRRIGATION, LAISSEZ FAIRE, LAND ACCESS, LAND DISTRIBUTION, LAND HOLDINGS, LAND OWNERSHIP, LAND TENURE, LANDHOLDINGS, LIVELIHOOD STRATEGIES, LIVELIHOODS, LIVESTOCK, LIVING STANDARDS, MAIZE, MALNUTRITION, MARKETING, MULTIPLIER EFFECTS, NATIONAL POVERTY, NATIONAL POVERTY RATE, NEGATIVE EXTERNALITIES, NUTRITION, NUTRITIONAL STATUS, OPPORTUNITY COST, PEAS, PER CAPITA CONSUMPTION, PEST CONTROL, PEST MANAGEMENT, PESTICIDE, PESTICIDE RESIDUE, POOR FARMERS, POOR HOUSEHOLDS, POOR SMALLHOLDERS, POOREST HOUSEHOLDS, POVERTY ALLEVIATION, POVERTY ASSESSMENT, POVERTY RATES, PRODUCT MARKETS, PRODUCTION COSTS, PRODUCTION PROCESS, REGIONAL COMPETITION, REGIONAL PRODUCTION, REMOTE LOCATIONS, RICE, RURAL AREAS, RURAL CREDIT, RURAL DEVELOPMENT, RURAL LIVING STANDARDS, RURAL POOR, RURAL POPULATION, SELF-EMPLOYMENT, SMALL FARMS, SMALL-SCALE FARMING, SMALLHOLDER FARMERS, SOIL DEGRADATION, SOIL QUALITY, SUBSISTENCE, SUBSISTENCE FARMERS, SUGARCANE, TECHNICAL ASSISTANCE, TEXTILES, UNEMPLOYMENT, VEGETABLE CROPS, VEGETABLE PRODUCTION, VEGETABLES, VILLAGE LEVEL, WAGES, WEALTH, WELFARE IMPROVEMENTS, WELFARE INDICATOR, YIELDS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091130101244 https://hdl.handle.net/10986/4335
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