Nontraditional crops, traditional constraints: The long‐term welfare impacts of export crop adoption among Guatemalan smallholders

Abstract

This article documents the long-term welfare effects of household nontraditional agricultural export (NTX) adoption. We use a panel dataset that spans the period 1985-2005, and employ difference-in-differences estimation to investigate the long-term impact of nontraditional 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 nontraditional 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 nontraditional 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. JEL classifications: C23, I31, O12, Q13. 4 In Santa Maria Cauque, one of the communities under study, a cohort analysis between 1964 and 1969 indicated that 13% of one-year-old children, 27% of two-year-old children, and 9% of three-year-old children were affected by protein calorie malnutrition (von Braun et al. 1989a).

Food crops commercialization and household livelihoods: Evidence from rural regions in Central Africa

“…Commercialization of agriculture is an important means of enhancing crop productivity, food security, and nutrition reduce poverty and incomes (Gebremedhin, Jaleta, & Hoekstra, ; Läpple, Hennessy, & Newman, ; Muriithi & Matz, ; Pingali, ). Carletto, Kilic, and Kirk () present evidence on the long‐term effects of agricultural commercialization on household welfare by using panel data and focus on the nontraditional agricultural export crop in the Central Highlands of Guatemala. Bellemare () also found that contract farming, a form of commercialization, has a positive impact on household welfare in Madagascar.…”

Agricultural commercialization and nutrition revisited: Empirical evidence from three African countries

“…Others (Carletto et al, 1999, Carletto et al, 2010, Carletto et al, 2011) focused more on the determinants of the commercialization process and its impact on poverty, as opposed to food security and nutrition.…”

Commercialisation of smallholder agriculture in Cambodia: impact of the cassava boom on rural livelihoods and agrarian change

“…Increased income and saving generated by commercialisation is likely to lead to improved household well-being; for example, increased household income has been linked to improved nutritional status of children, better health care, and improved housing condition (Braun and Kennedy, 1994;Kennedy, Bouis, and von Braun, 1992;Kennedy and Peters, 1992;Kennedy and Cogill, 1987). A recent study by Carletto, Kilic, and Kirk (2011) found general improvement in welfare levels, consumption, and livelihoods among Guatemalan smallholders who adopted non-traditional export crops including high-value vegetables and counter-seasonal fruit. Increased income from cash crops may allow farm households to invest more in farm and non-farm activities resulting in increased income generation over time.…”