Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty

As in many parts of the developing world, the share of high value crops in agricultural gross domestic product (AgGDP) has increased substantially in Nepal. We contribute to the literature on trends in agricultural development in the poorest countries by answering the research question on “Does tran...

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Main Authors: Thapa, Ganesh B., Kumar, Anjani, Joshi, Pramod Kumar
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2017
Subjects:
Online Access:https://hdl.handle.net/10568/146264
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author Thapa, Ganesh B.
Kumar, Anjani
Joshi, Pramod Kumar
author_browse Joshi, Pramod Kumar
Kumar, Anjani
Thapa, Ganesh B.
author_facet Thapa, Ganesh B.
Kumar, Anjani
Joshi, Pramod Kumar
author_sort Thapa, Ganesh B.
collection Repository of Agricultural Research Outputs (CGSpace)
description As in many parts of the developing world, the share of high value crops in agricultural gross domestic product (AgGDP) has increased substantially in Nepal. We contribute to the literature on trends in agricultural development in the poorest countries by answering the research question on “Does transition from traditional to high-value agriculture reduce rural poverty in poor developing countries”? We also identified the drivers leading to this transition. The study uses survey data from three rounds of the nationally representative Nepal Living Standard Surveys: NLSS I (1994/1995), NLSS II (2004/2005) and NLSS III (2010/2011). Multi-level model was used to study the determinants of agricultural diversification. To estimate the causal impact of agricultural diversification on welfare measures, propensity score matching and instrumental variable techniques were used. Results indicate that there has been a rightward shift in the distribution of the share (percent) of high-value crops between 1995 and 2004 and between 2004 and 2010, respectively. The area as well as the shared by major cereals (paddy, maize, and wheat) is declining over years. However, it is increasing for high-value crops (potato, vegetables, spices/condiments, and fruits). The percentage increase in share of the high-value crops was higher in or adjacent to urbanized districts between 1995 and 2010. The factors positively associated with the agricultural diversification are female-headed households, caste, mother's education, net-buyer status, urban region, remittance, farm size, kitchen garden, improved seeds, telephone and refrigerator. We found positive impact of agricultural diversification towards high-value crops on rural poverty and monthly per capita consumption expenditure. However, for cereal crops grower, we find the negative impact on poverty and monthly per capita consumption expenditure.
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spelling CGSpace1462642025-11-06T05:30:20Z Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty Thapa, Ganesh B. Kumar, Anjani Joshi, Pramod Kumar consumer expenditure high-value agricultural products households welfare horticulture agricultural development poverty diversification rural areas As in many parts of the developing world, the share of high value crops in agricultural gross domestic product (AgGDP) has increased substantially in Nepal. We contribute to the literature on trends in agricultural development in the poorest countries by answering the research question on “Does transition from traditional to high-value agriculture reduce rural poverty in poor developing countries”? We also identified the drivers leading to this transition. The study uses survey data from three rounds of the nationally representative Nepal Living Standard Surveys: NLSS I (1994/1995), NLSS II (2004/2005) and NLSS III (2010/2011). Multi-level model was used to study the determinants of agricultural diversification. To estimate the causal impact of agricultural diversification on welfare measures, propensity score matching and instrumental variable techniques were used. Results indicate that there has been a rightward shift in the distribution of the share (percent) of high-value crops between 1995 and 2004 and between 2004 and 2010, respectively. The area as well as the shared by major cereals (paddy, maize, and wheat) is declining over years. However, it is increasing for high-value crops (potato, vegetables, spices/condiments, and fruits). The percentage increase in share of the high-value crops was higher in or adjacent to urbanized districts between 1995 and 2010. The factors positively associated with the agricultural diversification are female-headed households, caste, mother's education, net-buyer status, urban region, remittance, farm size, kitchen garden, improved seeds, telephone and refrigerator. We found positive impact of agricultural diversification towards high-value crops on rural poverty and monthly per capita consumption expenditure. However, for cereal crops grower, we find the negative impact on poverty and monthly per capita consumption expenditure. 2017 2024-06-21T09:06:23Z 2024-06-21T09:06:23Z Working Paper https://hdl.handle.net/10568/146264 en https://hdl.handle.net/10568/148048 https://hdl.handle.net/10568/147529 https://hdl.handle.net/10568/147614 https://hdl.handle.net/10568/147408 https://hdl.handle.net/10568/146415 Open Access application/pdf International Food Policy Research Institute Thapa, Ganesh; Kumar, Anjani; and Joshi, Pramod Kumar. 2017. Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty. IFPRI Discussion Paper 1634. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/146264
spellingShingle consumer expenditure
high-value agricultural products
households
welfare
horticulture
agricultural development
poverty
diversification
rural areas
Thapa, Ganesh B.
Kumar, Anjani
Joshi, Pramod Kumar
Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty
title Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty
title_full Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty
title_fullStr Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty
title_full_unstemmed Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty
title_short Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty
title_sort agricultural diversification in nepal status determinants and its impact on rural poverty
topic consumer expenditure
high-value agricultural products
households
welfare
horticulture
agricultural development
poverty
diversification
rural areas
url https://hdl.handle.net/10568/146264
work_keys_str_mv AT thapaganeshb agriculturaldiversificationinnepalstatusdeterminantsanditsimpactonruralpoverty
AT kumaranjani agriculturaldiversificationinnepalstatusdeterminantsanditsimpactonruralpoverty
AT joshipramodkumar agriculturaldiversificationinnepalstatusdeterminantsanditsimpactonruralpoverty