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Off-farm work, land tenancy contracts and investment in soil conservation measures in rural Pakistan

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  • Kousar, Rakhshanda
  • Abdulai, Awudu

Abstract

This study examines the impacts of participation in off-farm work and land tenancy contracts on the intensity of investment in soil-improving measures and farm productivity. A multivariate Tobit model that accounts for potential endogeneity between the intensity of investment and the off-farm work and tenancy contract variables is estimated for 341 rural households in Punjab province of Pakistan. An instrumental variable approach is also used to analyse the impact of tenancy contract and off-farm work on farm productivity. The empirical results show that participation in off-farm work and tenure security tends to increase the intensity of investment in long-term soil-improving measures. We also find that increases in off-farm work and tenure security exert significant and positive effects on farm productivity.

Suggested Citation

  • Kousar, Rakhshanda & Abdulai, Awudu, 2016. "Off-farm work, land tenancy contracts and investment in soil conservation measures in rural Pakistan," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 60(2), April.
    • Handle: RePEc:ags:aareaj:292453
    DOI: 10.22004/ag.econ.292453
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    2. Han Zhang & Jari Kuuluvainen & Youliang Ning & Wenmei Liao & Can Liu, 2017. "Institutional Regime, Off-Farm Employment, and the Interaction Effect: What are the Determinants of Households’ Forestland Transfer in China?," Sustainability, MDPI, vol. 9(10), pages 1-15, October.
    3. Azeem, Muhammad Masood & Mugera, Amin W. & Schilizzi, Steven, 2016. "Living on the edge: Household vulnerability to food-insecurity in the Punjab, Pakistan," Food Policy, Elsevier, vol. 64(C), pages 1-13.
    4. Nida Akram & Muhammad Waqar Akram & Hongshu Wang & Ayesha Mehmood, 2019. "Does Land Tenure Systems Affect Sustainable Agricultural Development?," Sustainability, MDPI, vol. 11(14), pages 1-15, July.
    5. Bouchakour, Radhia & Saad, Mohammed, 2020. "Farm and farmer characteristics and off-farm work: evidence from Algeria," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), April.
    6. Renwick, A. & Ma, W. & Nie, P. & Tang, J., 2018. "The Joint Effects of Off-farm Work and Smartphone Use on Household Income in Rural China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277304, International Association of Agricultural Economists.
    7. Yaping He & Dandan Fu & Hua Zhang & Xiudong Wang, 2023. "Can Agricultural Production Services Influence Smallholders’ Willingness to Adjust Their Agriculture Production Modes? Evidence from Rural China," Agriculture, MDPI, vol. 13(3), pages 1-19, February.
    8. Ma, Wanglin & Renwick, Alan & Grafton, Quentin, 2018. "Farm machinery use, off-farm employment and farm performance in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(2), April.
    9. Liu, Min & Dries, Liesbeth & Heijman, Wim & Zhu, Xueqin & Deng, Xiangzheng & Huang, Jikun, 2019. "Land tenure reform and grassland degradation in Inner Mongolia, China," China Economic Review, Elsevier, vol. 55(C), pages 181-198.
    10. Zhang, Huaquan & Yang, Fan & Chandio, Abbas Ali & Liu, Jing & Twumasi, Martinson Ankrah & Ozturk, Ilhan, 2023. "Assessing the effects of internet technology use on rural households' cooking energy consumption: Evidence from China," Energy, Elsevier, vol. 284(C).
    11. Aryal, Kishor & Maraseni, Tek & Apan, Armando, 2023. "Spatial dynamics of biophysical trade-offs and synergies among ecosystem services in the Himalayas," Ecosystem Services, Elsevier, vol. 59(C).
    12. Xi Yu & Xiyang Yin & Yuying Liu & Dongmei Li, 2021. "Do Agricultural Machinery Services Facilitate Land Transfer? Evidence from Rice Farmers in Sichuan Province, China," Land, MDPI, vol. 10(5), pages 1-14, April.
    13. Ruixin Zhang & Lei Luo & Yuying Liu & Xinhong Fu, 2022. "Impact of Labor Migration on Chemical Fertilizer Application of Citrus Growers: Empirical Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-14, June.
    14. Martinson Ankrah Twumasi & Hongyun Zheng & Love Offeibea Asiedu-Ayeh & Anthony Siaw & Yuansheng Jiang, 2023. "Access to Financial Services and Its Impact on Household Income: Evidence from Rural Ghana," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(4), pages 869-890, August.
    15. Chaozhu Li & Xiaoliang Li & Jiaxu Wang & Tianchu Feng, 2023. "Impacts of Aging Agricultural Labor Force on Land Transfer: An Empirical Analysis Based on the China Family Panel Studies," Land, MDPI, vol. 12(2), pages 1-15, January.
    16. Edinam Dope Setsoafia & Wanglin Ma & Alan Renwick, 2022. "Effects of sustainable agricultural practices on farm income and food security in northern Ghana," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-15, December.
    17. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2021. "The Case for Long-Term Land Leasing: A Review of the Empirical Literature," Land, MDPI, vol. 10(3), pages 1-21, March.
    18. Do, Huu-Luat & Ho, Thong Quoc, 2022. "Climate change adaptation strategies and shrimp aquaculture: Empirical evidence from the Mekong Delta of Vietnam," Ecological Economics, Elsevier, vol. 196(C).
    19. Ma, Wanglin & Renwick, Alan & Nie, Peng & Tang, Jianjun & Cai, Rong, 2018. "Off-farm work, smartphone use and household income: Evidence from rural China," China Economic Review, Elsevier, vol. 52(C), pages 80-94.
    20. Mondal, Ripon Kumar & Selvanathan, Eliyathamby A & Selvanathan, Saroja, 2020. "The impact of rural nonfarm employment on agricultural input use and productivity in Bangladesh," 2020 Conference (64th), February 12-14, 2020, Perth, Western Australia 305251, Australian Agricultural and Resource Economics Society.
    21. Xin, Wang & Yanping, Song & Tan, Li, 2021. "Small farmer's planting confidence and willingness to pay for leguminous green fertilizer: environmental attributes perspective," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), August.
    22. Zheng, Linyi, 2023. "Impact of off-farm employment on cooking fuel choices: Implications for rural-urban transformation in advancing sustainable energy transformation," Energy Economics, Elsevier, vol. 118(C).
    23. Choi, Jiseon & Jodlowski, Margaret C., 2022. "Tenure Status and Land Investment in South Korea," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322476, Agricultural and Applied Economics Association.

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    Keywords

    Farm Management; Land Economics/Use;

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