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This issue brings out five papers covering various new dimensions of agriculture such
as Total Factor Productivity (TFP) decomposition for cotton growers, role of crop
diversification, rural employment diversification, and urban agriculture and expenditure patterns on foodservice.
Ajetomobi Joshua Olusegun, in the paper “Total Factor Productivity Decomposition for Cotton Growers in the Economic Community of West African States (ECOWAS): 1961-2005”, estimates the TFP growth of cotton crop in ECOWAS and its decomposition to efficiency change and technological progress, using the stochastic production frontier approach.
The study considers data on cotton output and six input variables comprising land area, labor, seed, capital, time trend and country fixed effects into consideration. To examine the effects of ECOWAS reforms on productivity growth of the crop, the study period is divided into two sub-periods. The results show that there is more possibility for efficiency improvement in cotton production in ECOWAS, as the average Technical Efficiency (TE) score for the region is 0.91. Burkina Faso is found to be the most technically efficient country, because of its sustainable cotton support system. A closer look at the TFP in ECOWAS reveals that the pre-ECOWAS period demonstrates larger TFP than the ECOWAS period. This study, however, concludes that in both the periods, the productivity growth in cotton crop is sustained through technological progress, rather than through more efficient use of inputs.
Pradeep Kumar Mehta, in his paper “Role of Crop Diversification in Output Growth in India: A State-Level Analysis”, says that diversification has received great attention as one of the major tools of policy in the recent past in India, when the agriculture sector has been facing significant problems such as stagnant growth, incomplete agricultural transformation, low productivity, etc. This paper examines four dimensions of diversification such as, the number of crops, spread of cropping pattern, proportion of high value crops in the cropping pattern, shift in cropping pattern mix, and the linkage of these dimensions in the process of agricultural production in India in the last three decades. The results prove that there is great heterogeneity in terms of typology of diversification within the states and there is no clear-cut link of one type of diversification with income and risk pattern. The temporal picture exhibits that the role of crop diversification (change in crop mix) in the growth of production is increasing over a period of time. However, the findings suggest that through proper technological and market development, diversification should be made remunerative, otherwise the gains from diversification would be futile.
Sandeep Kaur and Parmjit Nanda, in their paper “Rural Employment Diversification in Punjab: Exploring Some Linkages”, elucidate that diversification of rural economy may take place, not only in terms of output, but also in terms of employment in a state like Punjab.
In the light of this introduction, this study mainly deals with changes in the composition of rural workforce in Punjab and sources of inter-district variations in rural non-agricultural employment in terms of push and pull factors. It is also evident that wide inter-district variations exist, in terms of population served per commercial bank, and the literacy rate, which is affecting rural non-agricultural employment. Above all, literacy rate is found to be the most significant variable affecting inter-district variations. In districts like Amritsar, Faridkot and Kapurthala, where rural non-agricultural employment has limited opportunities in the agricultural sector, agricultural workers have shifted from the agricultural sector to the non-agricultural sector. As the shift of rural workers to the rural non-agricultural sector is mostly due to push factors, the rural non-agricultural sector in Punjab has to develop in such a way so that it can generate stronger pull factors.
Seidu Al-Hassan, in his paper “Urban Agriculture: Factors Affecting the Decision to Grow Vegetables in Tamale Metropolis”, articulates that though recent evidence shows that the consumption of non-traditional (exotic) vegetables like lettuce, spring onion, green pepper and cabbage among urban dwellers in Ghana is increasing, there has not been any economic assessment of the factors that influence the production of these vegetables. Against this backdrop, this study utilizes cross-sectional data obtained from 196 urban agriculturalists, consisting of vegetable and non-vegetable farmers, to examine the factors that determine the cultivation of vegetables in the Tamale Metropolitan Assembly of the northern region of Ghana. Results indicate that vegetable production is influenced by extension service, the use of inorganic fertilizers and the availability of farm land. It recommends that the existing extension agents should be trained in the production techniques of these modern vegetables, so that the vegetable farmers can also utilize the same. This study emphasizes on quality seed production, seed variety and diversification, and quality control and efficient application of manure in order to encourage the production of exotic vegetables.
Tey Yeong Sheng, Mad Nasir Shamsudin, Zainalabidin Mohamed, Amin Mahir Abdullah and Alias Radam, in their paper “Expenditure Patterns on Foodservice in Malaysia”, opine that rapid changes have occurred in foodservice—food preparation, cooking and places of consumption. Foodservice has become increasingly important in the composition of the food account among Malaysians. Against this backdrop, this study analyzes consumers’ expenditure patterns on foodservice in Malaysia. Several functional forms and a Heckman two-step methodology to account for censored-response bias, are employed in the analysis of the Household Expenditure Survey, 2004-2005 data. Regardless of functional forms, the empirical estimates of income elasticity of demand for foodservice are significantly higher than the income elasticity of demand for food at home. This study concludes that an increase in income has the propensity to lead to an increase in expenditure (demand) on foodservice, which shows positive prospects for the foodservice industry in Malaysia.
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L Krishna Veni
Consulting Editor |