Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar

Agrifood sector mechanization service providers (MSP) and mechanization equipment retailers (MER) have increasingly become the providers of mechanical technologies for smallholders in developing countries, including Myanmar. Evidence remains scarce on the effects of COVID‐19 on these MSPs and MERs....

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Autores principales: Takeshima, Hiroyuki, Masias, Ian, Win, Myat Thida, Zone, Phoo Pye
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2023
Materias:
Acceso en línea:https://hdl.handle.net/10568/140014
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author Takeshima, Hiroyuki
Masias, Ian
Win, Myat Thida
Zone, Phoo Pye
author_browse Masias, Ian
Takeshima, Hiroyuki
Win, Myat Thida
Zone, Phoo Pye
author_facet Takeshima, Hiroyuki
Masias, Ian
Win, Myat Thida
Zone, Phoo Pye
author_sort Takeshima, Hiroyuki
collection Repository of Agricultural Research Outputs (CGSpace)
description Agrifood sector mechanization service providers (MSP) and mechanization equipment retailers (MER) have increasingly become the providers of mechanical technologies for smallholders in developing countries, including Myanmar. Evidence remains scarce on the effects of COVID‐19 on these MSPs and MERs. This study provides insights into the effects of COVID‐19 restrictions on MSPs and MERs in Myanmar, using unbalanced panel data from five rounds of phone surveys. Direct responses to COVID‐19 involving movement restrictions, market disruptions, and growing financial challenges had significant negative effects on revenue prospects, service delivery, and sales of machines and equipment. Negative revenue prospects during a particular period can further hurt revenue prospects in subsequent periods. This is consistent with the hypotheses that MSPs who had incurred high sunk costs in machines can engage in more desperate and, thus, potentially suboptimal business practices to recover the sunk cost. Overall, policies to minimize movement restrictions and various financial struggles and mitigate any pessimism at the beginning of the production season are all important to make sure MSPs and MERs continue to function effectively under COVID‐19.
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spelling CGSpace1400142025-10-26T13:02:19Z Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar Takeshima, Hiroyuki Masias, Ian Win, Myat Thida Zone, Phoo Pye market disruptions costs policies surveys coronavirus covid-19 restrictions equipment services technology smallholders coronavirinae developing countries financial situation coronavirus disease agrifood sector mechanization Agrifood sector mechanization service providers (MSP) and mechanization equipment retailers (MER) have increasingly become the providers of mechanical technologies for smallholders in developing countries, including Myanmar. Evidence remains scarce on the effects of COVID‐19 on these MSPs and MERs. This study provides insights into the effects of COVID‐19 restrictions on MSPs and MERs in Myanmar, using unbalanced panel data from five rounds of phone surveys. Direct responses to COVID‐19 involving movement restrictions, market disruptions, and growing financial challenges had significant negative effects on revenue prospects, service delivery, and sales of machines and equipment. Negative revenue prospects during a particular period can further hurt revenue prospects in subsequent periods. This is consistent with the hypotheses that MSPs who had incurred high sunk costs in machines can engage in more desperate and, thus, potentially suboptimal business practices to recover the sunk cost. Overall, policies to minimize movement restrictions and various financial struggles and mitigate any pessimism at the beginning of the production season are all important to make sure MSPs and MERs continue to function effectively under COVID‐19. 2023-02 2024-03-14T12:08:49Z 2024-03-14T12:08:49Z Journal Article https://hdl.handle.net/10568/140014 en https://doi.org/10.2499/p15738coll2.134402 https://doi.org/10.1016/j.agsy.2020.103026 https://doi.org/10.1111/deve.12077 https://doi.org/10.2499/p15738coll2.134281 Limited Access Wiley Takeshima, Hiroyuki; Masias, Ian; Win, Myat Thida; and Zone, Phoo Pye. 2023. Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar. Review of Development Economics 27(1): 323-351. https://doi.org/10.1111/rode.12940
spellingShingle market disruptions
costs
policies
surveys
coronavirus
covid-19
restrictions
equipment
services
technology
smallholders
coronavirinae
developing countries
financial situation
coronavirus disease
agrifood sector
mechanization
Takeshima, Hiroyuki
Masias, Ian
Win, Myat Thida
Zone, Phoo Pye
Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar
title Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar
title_full Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar
title_fullStr Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar
title_full_unstemmed Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar
title_short Effects of COVID-19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar
title_sort effects of covid 19 restrictions on mechanization service providers and mechanization equipment retailers insights from phone surveys in myanmar
topic market disruptions
costs
policies
surveys
coronavirus
covid-19
restrictions
equipment
services
technology
smallholders
coronavirinae
developing countries
financial situation
coronavirus disease
agrifood sector
mechanization
url https://hdl.handle.net/10568/140014
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