DOI QR코드

DOI QR Code

The Impact of Indigenous People's Pre-existing Information on Rice Farming: Findings from Laos

  • Received : 2022.12.21
  • Accepted : 2023.03.14
  • Published : 2023.03.30

Abstract

Dissemination of information can enhance smallholder farmers' agricultural outcomes and incomes in developing countries. However, the impact evaluation for new information can be inaccurate without considering pre-existing information that the indigenous people have used. This study explores qualitative causal links between existing agricultural information used by Lao smallholder farmers on rice yield and selling price with 180 household data. We categorized the pre-existing information into weather, farming technique, input, intermediate trader, and sales price. The source of each piece of information is used as an instrumental variable to overcome the endogeneity issue between information use and agricultural outcomes. Using farming technique information positively affects rice yields by 57.1% compared to those without that information. Moreover, intermediate trader and crop sales information result in 64.5% and 60.0% higher selling prices than non-user groups. A statistically significant causal relationship exists with agricultural outcomes. The more genuine impact should be measured with a newly updated impact evaluation approach that considers this pre-existing agricultural information.

Keywords

References

  1. Abraham, R. 2006. "Mobile phones and economic development: Evidence from the fishing industry in India." Paper presented at the 2006 International Conference on Information and Communication Technologies and Development. Berkeley, California. May 25-26. IEEE. https://doi.org/10.1109/ICTD.2006.301837
  2. Aker, J. C. 2010. "Information from markets near and far: mobile phones and agricultural markets in Niger." American Economic Journal: Applied Economics, vol. 2, no. 3, pp. 46-59. https://doi.org/10.1257/app.2.3.46
  3. Aker, J. C. and M. Fafchamps. 2015. "Mobile phone coverage and producer markets: evidence from West Africa." World Bank Economic Review, vol. 29, no. 2, pp. 262-292. https://doi.org/10.1093/wber/lhu006
  4. Aker, J. C. and C. Ksoll. 2016. "Can mobile phones improve agricultural outcomes? Evidence from a randomized experiment in Niger." Food Policy, vol. 60, pp. 44-51. https://doi.org/10.1016/j.foodpol.2015.03.006
  5. Aker, J. C. and I. M. Mbiti. 2010. "Mobile phones and economic development in Africa." Journal of Economic Perspective, vol. 24, no. 3, pp. 207-232. http://dx.doi.org/10.1257/jep.24.3.207
  6. Angrist, J. D. and J.-S. Pischke. 2009. Mostly harmless econometrics: An empiricist's companion. Princeton, NJ: Princeton University Press.
  7. Besley, T. 1995. "Property-Rights and Investment Incentives: Theory and Evidence from Ghana." Journal of Political Economy, vol. 103, no. 5, pp. 903-937. http://dx.doi.org/10.1086/262008
  8. Bourdet, Y. 2000. The Economics of Transition in Laos: From Socialism to ASEAN Integration. Cheltenham, UK: Edward Elgar.
  9. Brasselle, A.-S., Gaspart, F. and J.-P. Platteau. 2002. "Land tenure security and investment incentives: puzzling evidence from Burkina Faso." Journal of Development Economics, vol. 67, no. 2, pp. 373-418. https://doi.org/10.1016/S0304-3878(01)00190-0
  10. Cole, S. A. and A. N. Fernando. 2012. "The value of Advice: Evidence from Mobile phone based agricultural extension." Harvard Business School Working Paper, no. 13-047. http://dx.doi.org/10.2139/ssrn.2179008
  11. Cook, J. A. 2009. "Smallholder Agriculture and the Environment in a Changing Global Context." WWF MPO, May 2009. World Wildlife Fund Macroeconomics Program Office. https://wwfint.awsassets.panda.org/downloads/wwf_mpo_smallholder_ag_policy_brief.pdf
  12. Deaton, A. and G. Laroque. 1996. "Competitive storage and commodity price dynamics." Journal of Political Economy, vol. 104, no. 5, pp. 896-923. https://doi.org/10.1086/262046
  13. Dimova, R. and K. Sen. 2010. "Is household income diversification a means of survival or a means of accumulation? Panel data evidence from Tanzania." BWPI Working Paper, no. 122. Brooks World Poverty Institute, The University of Manchester.
  14. Fafchamps, M. and B. Minten. 2012. "Impact of SMS-based agricultural information on Indian farmers." World Bank Economic Review, vol. 26, no. 3, pp. 383-414. https://doi.org/10.1093/wber/lhr056
  15. Gadeng, A. N., Maryani, E. and D. Rohmat. 2018. "The value of local wisdom smong in tsunami disaster mitigation in Simeulue Regency, Aceh Province." Paper presented at the 1st UPI International Geography Seminar 2017. August 8. Indonesia. IOP Conference Series: Earth and Environmental Science, vol. 145. https://doi.org/10.1088/1755-1315/145/1/012041
  16. Goyal, A. 2010. "Information, direct access to farmers, and rural market performance in Central India." American Economic Journal: Applied Economics, vol. 2, no. 3, pp. 22-45. https://doi.org/10.1257/app.2.3.22
  17. Harris, D. N. 2011. "Extending rice crop yield improvements in Lao PDR: an ACIAR-World Vision collaborative project." ACIAR Impact Assessment Series Report, no. 75. Australian Centre for International Agricultural Research, Australian Government.
  18. Hasanah, S., Yani, A. and I. Setiawan. 2021. "Water conservation based on local wisdom in Cikondang traditional village community." Paper presented at the International Geography Seminar 2019. August 31, 2019. Lor in Hotel Solo, Indonesia. IOP Conference Series: Earth and Environmental Science, vol. 683.
  19. Jackson, L. A., Zhao, Y., Kolenic, A., Fitzgerald, H. E., Harold, R. and A. VonEye. 2008. "Race, Gender, and Information Technology Use: The New Digital Divide." CyberPsychology & Behavior, vol. 11, no. 4, pp. 437-442. https://doi.org/10.1089/cpb.2007.0157
  20. Jaitae, S. 2016. "The local wisdom agriculture of farmer at Muang kaen Municipality Maetang district, Chiang Mai." Journal of Agricultural Research and Extension, vol. 33, no. 3, pp. 64-72. https://www.cabdirect.org/cabdirect/abstract/20193172357 (In Thai)
  21. Jensen, R. 2007. "The digital provide: information (technology), market performance, and welfare in the South Indian fisheries sector." Quarterly Journal of Economics, vol. 122, no. 3, pp. 879-924. https://doi.org/10.1162/qjec.122.3.879
  22. Kanz, M. 2016. "What does debt relief do for development? Evidence from India's bailout for rural households." American Economic Journal: Applied Economics, vol. 8, no. 4, pp. 66-99. https://doi.org/10.1257/app.20130399
  23. Kassie, M., Shiferaw, B. and G. Muricho. 2011. "Agricultural Technology, Crop Income, and Poverty Alleviation in Uganda." World Development, vol. 39, no. 10, pp. 1784-1795. https://doi.org/10.1016/j.worlddev.2011.04.023
  24. Kirui, O. K., Okello, J. J. and R. A. Nyikal. 2013. "Impact of mobile phone-based money transfer services in agriculture: evidence from Kenya." Quarterly Journal of International Agriculture, vol. 52, no. 2, pp. 141-162.
  25. Klonner, S. and P. J. Nolen. 2010. "Cell phones and rural labour markets: evidence from South Africa." In the proceedings of the German Development Economics Conference. Hannover. https://ideas.repec.org/p/zbw/gdec10/56.html
  26. Lamptey, R. B., Sambo, I. A. and A. A. Hassan. 2017. "Disseminating and promoting agriculture information through library and information services in Ghana." Qualitative and Quantitative Methods in Libraries, vol. 5, no. 4, pp. 901-907. http://www.qqml.net/index.php/qqml/article/view/15
  27. Lao PDR Ministry of Agriculture and Forestry (LMAF). 2010. "Strategy for Agricultural Development 2011 to 2020: Agriculture and Forestry for Sustainable Development, Food and Income Security, Vientiane, August 19, 2010." https://www.gafspfund.org/sites/default/files/inline-files/5.%20LaoPDR_strategy.pdf
  28. Lao PDR Ministry of Agriculture and Forestry (LMAF). 2015. "Agriculture development strategy to 2025 and vision to the year 2030." https://www.maf.gov.la/wp-content/uploads/2016/01/MDS-2025-and-Vision-to-2030-Eng.pdf
  29. Lee, K. H. and M. F. Bellemare. 2013. "Look who's talking: the impacts of the intrahousehold allocation of mobile phones on agricultural prices." Journal of Development Studies, vol. 49, no. 5, pp. 624-640. https://doi.org/10.1080/00220388.2012.740014
  30. Markussen, T. 2008. "Property Rights, Productivity, and Common Property Resources: Insights from Rural Cambodia." World Development, vol. 36, no. 11, pp. 2277-2296. https://doi.org/10.1016/j.worlddev.2008.04.008
  31. Martin, G. J. 2014. Ethnobotany: a methods manual. Boston: Springer.
  32. Messerli, P., Heinimann, A. and M. Epprecht. 2009. "Finding homogeneity in heterogeneity-A new approach to quantifying landscape mosaics developed for the Lao PDR." Human Ecology, vol. 37, pp. 291-304. https://doi.org/10.1007/s10745-009-9238-1
  33. Minah, S., Norjietta, T., Rosliah, K. and S. K. I. Novi. 2019. "Local wisdom in agriculture for environmental sustainability: A case study of the Dusun community." International Journal of Innovation, Creativity and Change, vol. 6, no. 8, pp. 117-138. https://www.ijicc.net/images/Vol6Iss8/6810_Minah_2019_E_R.pdf 10_Minah_2019_E_R.pdf
  34. Mittal, S. and G. Tripathi. 2009. "Role of Mobile Phone Technology in Improving Small Farm Productivity." Agricultural Economics Research Review, vol. 22, no. conference, pp. 451-459. https://www.indianjournals.com/ijor.aspx?target=ijor:aerr&volume=22&issue=conf& article=015
  35. Mungmachon, M. R. 2012. "Knowledge and local wisdom: Community treasure." International Journal of Humanities and Social Science, vol. 2, no. 13, pp. 174-181. http://www.ijhssnet.com/view.php?u=https://www.ijhssnet.com/journals/Vol_2_No_13_July_2012/18.pdf
  36. Muto, M. and T. Yamano. 2009. "The impact of mobile phone coverage expansion on market participation: Panel data evidence from Uganda." World development, vol. 37, no. 12, pp. 1887-1896. https://doi.org/10.1016/j.worlddev.2009.05.004
  37. Najdov, E. and K. Phimmahasay. 2016. "Lao Economic Monitor: Challenges in promoting more inclusive growth and shared prosperity: Thematic Secton-drivers of proverty reduction in Lao PDR." Working Paper, no. AUS17628. World Bank.
  38. Nelson, G. C., Rosegrant, M. W., Koo, J., Robertson, R., Sulser, T., Zhu, T., Ringler, C., Msangi, S., Palazzo, A., Batka, M., Magalhaes, M., Valmonte-Santos, R., Ewing, M. and D. Lee. 2009. "Climate Change Impact on Agriculture and Costs of Adaptation, Appendix 2: Results by World Bank Regional Grouping of countries." Food Policy Report. International Food Policy Research Institute.
  39. Ogutu, S. O., Okello, J. J. and D. J. Otieno. 2014. "Impact of information and communication technology-based market information services on smallholder farm input use and productivity: The case of Kenya." World Development, vol. 64, pp. 311-321. https://doi.org/10.1016/j.worlddev.2014.06.011
  40. Overa, R. 2006. "Networks, distance, and trust: telecommunications development and changing trading practices in Ghana." World Development, vol. 34, no. 7, pp. 1301-1315. https://doi.org/10.1016/j.worlddev.2005.11.015
  41. Pande, D. 2019. "Impact of the agriculture debt waiver debt relief scheme on the consumption expenditure of smallholder farmers." Agricultural Economics Research Review, vol. 32, no. conference, pp. 103-112. https://www.doi.org/10.5958/0974-0279.2019.00020.X
  42. Phimphanthavong, H. 2012. "Economic Reform and Regional Development of Laos." Modern Economy, vol. 3, no. 2, pp. 179-186. https://www.doi.org/10.4236/me.2012.32025
  43. Roller, L.-H. and L. Waverman. 2001. "Telecommunications infrastructure and economic development: A simultaneous approach." American Economic Review, vol. 91, no. 4, pp. 909-923. http://doi.org/10.1257/aer.91.4.909
  44. Shimamoto, D., Yamada, H. and M. Gummert. 2015. "Mobile phones and market information: Evidence from rural Cambodia." Food Policy, vol. 57, pp. 135-141. https://doi.org/10.1016/j.foodpol.2015.10.005
  45. Sharma, S. D. 2005. "Agricultural Development for Inclusive Growth: A Strategy for Achieving the Millenium Development Goals." East Asian Economic Review, vol. 9, no. 1, pp. 59-84. https://dx.doi.org/10.11644/KIEP.JEAI.2005.9.1.136
  46. Situmorang, R. O. P., Harianja, A. H. and J. Silalahi. 2015. "Karo's local wisdom: The use of woody plants for traditional diabetic medicines." Indonesian Journal of Forestry Research, vol. 2, no. 2, pp. 121-130. https://doi.org/10.20886/ijfr.2015.2.2.121-130
  47. Susilawati, P. N., Yursak, Z. and U. D. Amanda. 2020. "Local rice conservation through local wisdom of indigenous culture in Kasepuhan Cisungsang, Banten Province, Indonesia." Paper presented at the 7th Symposium of Japan-ASEAN Science Techonology Innovation Platform. 24 October, 2019. Tangerang, Indonesia. IOP Conference Series: Earth and Environmental Science, vol. 591.
  48. Svensson, J. and D. Yanagizawa. 2009. "Getting prices right: the impact of the market information service in Uganda." Journal of the European Economic Association, vol. 7, no. 2-3, pp. 435-445. https://doi.org/10.1162/JEEA.2009.7.2-3.435
  49. Stigler, G. J. 1961. "The economics of information." Journal of Political Economy, vol. 69, no. 3, pp. 213-225. https://www.jstor.org/stable/i304798 https://doi.org/10.1086/258464
  50. Southiseng, N. and J. Walsh. 2010. "Competition and Management Issues of SME Entrepreneurs in Laos: Evidence from Empirical Studies in Vientiane Municipality, Savannakhet and Luang Prabang." Asian Journal of Business Management, vol. 2, no. 3, pp. 57-72. https://maxwellsci.com/jp/abstract.php?jid=AJBM&no=68&abs=02
  51. Tack, J. B. and J. C. Aker. 2014. "Information, Mobile Telephony and traders' search behavior in Niger." American Journal of Agricultural Economics, vol. 96, no. 5, pp. 1439-1454. https://doi.org/10.1093/ajae/aau063
  52. Tang, C. S., Wang, Y. and M. Zhao. 2015. "The implications of utilizing market information and adopting agricultural advice for farmers in developing economies." Production and Operations Management, vol. 24, no. 8, pp. 1197-1215. https://doi.org/10.1111/poms.12336
  53. U.S. Central Intelligence Agency. n.d. Perry-Castaneda Libaray Map Collection-Laos Maps [files]. University of Texas Libraries, University of Texas at Austin. http://legacy.lib.utexas.edu/maps/laos.html (Accessed 2016)
  54. Wooldridge, J. M. 2010. Econometric analysis of cross section and panel data. Cambridge, Mass.: MIT press.
  55. World Food Programme (WFP). n.d. Lao PDR Country Strategic Plan 2017-2021 [files]. https://www.wfp.org/operations/la01-laos-country-strategic-plan-2017-2021
  56. Zulfadrim, Z., Toyoda, Y. and H. Kanegae. 2018. "The implementation of local wisdom in reducing natural disaster risk: a case study from West Sumatera." Paper Presnted at the 4th International Seminar on Sustainable Urban Development. August 9-10, 2017. Jakarta, Indonesia. IOP Conference Series: Earth and Environmental Science, vol. 106.