Journal of Korean Society of Rural Planning (농촌계획)

Korean Society of Rural Planning (한국농촌계획학회)
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The Effect of Crop Diversification on Agricultural Income

작목다각화가 농업소득에 미치는 영향

  • Choi, Do Hyeong (Dept. of Agricultural Economics and Rural Development, Seoul National University) ;
  • Choi, Eunji (University Innovation Center, Seoul National University) ;
  • Lee, Seong Woo (Dept. of Agricultural Economics and Rural Development, Seoul National University)
  • 최도형 (서울대학교 농경제사회학부 지역정보학전공) ;
  • 최은지 (서울대학교 대학혁신센터) ;
  • 이성우 (서울대학교 농경제사회학부 지역정보학전공)
  • Received : 2021.08.20
  • Accepted : 2021.11.23
  • Published : 2021.11.30
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Abstract

The purpose of this study is to analyze the effect of crop diversification on farm households' agricultural income. Abundant literature have explored the determinants and efficient strategies for crop diversification. Yet, there is a paucity of research studies that empirically test the effectiveness of crop diversification as a profitable farm management strategy. Utilizing the 2015 Agricultural Census, this study adopts a quasi-experimental research design to compare the outcomes between farm households that opted for crop diversification and farm households that did not engage in such a strategy. In doing so, this study applies the Heckman Selection Model and the decomposition technique to address the problem of selection bias and to identify the causal effect. Our empirical results show that farms that implement diversification are more likely to earn higher agricultural income than non-diversified farms, although the difference would not be much substantial. This study concludes with several policy proposals to stabilize agricultural income in conjunction with crop diversification.

Keywords

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