The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders
The purpose of this paper is to explore the endogenous relationship between production specialisation and market commercialisation with an empirical study of farmers in Northwest China.The three-stage least squares were used to address simultaneity and over-identification problems in comparison with...
| Autores principales: | , , , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Emerald Publishing Limited
2017
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/148458 |
| _version_ | 1855513602062024704 |
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| author | Li, Lihua Varua, Maria Estela Komarek, Adam M. Shankar, Sriram Bellotti, William D. |
| author_browse | Bellotti, William D. Komarek, Adam M. Li, Lihua Shankar, Sriram Varua, Maria Estela |
| author_facet | Li, Lihua Varua, Maria Estela Komarek, Adam M. Shankar, Sriram Bellotti, William D. |
| author_sort | Li, Lihua |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | The purpose of this paper is to explore the endogenous relationship between production specialisation and market commercialisation with an empirical study of farmers in Northwest China.The three-stage least squares were used to address simultaneity and over-identification problems in comparison with two-stage least squares (2SLS). The Durbin-Wu-Hausman test was employed to identify the endogeneity of the commercialisation and specialisation variables. The validity, relevance, and strength of the instruments were tested using the Stock-Yogo weak instrument diagnostics test.A two-way interrelationship between specialisation and commercialisation were confirmed, and suggest that farmers’ decisions on farm commercialisation and production specialisation are actually separate and interacting.By demonstrating that a virtuous cycle exists between agricultural commercialisation and on-farm specialisation, policies can be formulated to complement these two effects that may help increase small holders’ income. Farmers’ market participation can be indirectly improved by combining market improvement and risk management tools to encourage production specialisation.The insights of this study cast further light onto the farm market participation theory by emphasising that higher asset endowments enable small farmers to specialise in production with comparative advantage. |
| format | Journal Article |
| id | CGSpace148458 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2017 |
| publishDateRange | 2017 |
| publishDateSort | 2017 |
| publisher | Emerald Publishing Limited |
| publisherStr | Emerald Publishing Limited |
| record_format | dspace |
| spelling | CGSpace1484582025-01-28T07:08:05Z The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders Li, Lihua Varua, Maria Estela Komarek, Adam M. Shankar, Sriram Bellotti, William D. smallholders agricultural economics commercialization The purpose of this paper is to explore the endogenous relationship between production specialisation and market commercialisation with an empirical study of farmers in Northwest China.The three-stage least squares were used to address simultaneity and over-identification problems in comparison with two-stage least squares (2SLS). The Durbin-Wu-Hausman test was employed to identify the endogeneity of the commercialisation and specialisation variables. The validity, relevance, and strength of the instruments were tested using the Stock-Yogo weak instrument diagnostics test.A two-way interrelationship between specialisation and commercialisation were confirmed, and suggest that farmers’ decisions on farm commercialisation and production specialisation are actually separate and interacting.By demonstrating that a virtuous cycle exists between agricultural commercialisation and on-farm specialisation, policies can be formulated to complement these two effects that may help increase small holders’ income. Farmers’ market participation can be indirectly improved by combining market improvement and risk management tools to encourage production specialisation.The insights of this study cast further light onto the farm market participation theory by emphasising that higher asset endowments enable small farmers to specialise in production with comparative advantage. 2017 2024-06-21T09:24:44Z 2024-06-21T09:24:44Z Journal Article https://hdl.handle.net/10568/148458 en Emerald Publishing Limited Li, Lihua; Varua, Maria Estela; Komarek, Adam M.; Shankar, Sriram; and Bellotti, William D. 2017. The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders. China Agricultural Economic Review 9(4): 504-521. https://doi.org/10.1108/CAER-08-2016-0122 |
| spellingShingle | smallholders agricultural economics commercialization Li, Lihua Varua, Maria Estela Komarek, Adam M. Shankar, Sriram Bellotti, William D. The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders |
| title | The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders |
| title_full | The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders |
| title_fullStr | The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders |
| title_full_unstemmed | The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders |
| title_short | The interplay of production commercialisation and specialization: An empirical study on Chinese smallholders |
| title_sort | interplay of production commercialisation and specialization an empirical study on chinese smallholders |
| topic | smallholders agricultural economics commercialization |
| url | https://hdl.handle.net/10568/148458 |
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