IDEAS home Printed from https://ideas.repec.org/a/bla/ajarec/v67y2023i1p56-82.html
   My bibliography  Save this article

Labour‐saving technologies in smallholder agriculture: An economy‐wide model with field operations

Author

Listed:
  • Arndt Feuerbacher
  • Jonas Luckmann

Abstract

Labour‐saving technologies are relevant for agricultural development. Yet, as this study shows, they are poorly integrated into agricultural production functions of economy‐wide models. We report a computable general equilibrium (CGE) model, which explicitly incorporating field operations (e.g. land preparation, weeding or harvesting) in the context of smallholder agriculture. The field operations approach allows to model technological trade‐offs in organic and conventional production systems at various stages of the agricultural production process. Simulating a structural change scenario, we compare the performance of the field operations approach with published benchmark production structures by assessing how they replicate empirically observed changes in land and agrochemical use. This benchmark analysis shows that incorporating field operations replicates the observed empirical changes most accurately and allows for more realistic modelling of labour‐saving technologies. We use the field operations model to investigate three policy options to mitigate labour shortages in the agricultural sector of Bhutan. Permitting the employment of Indian workers in agriculture has the highest short‐term potential in this respect. We find that subsidising agricultural machinery hiring services and removing import tariffs on agrochemical inputs are found to be less effective. Further options for model developments, such as combining field operations and labour market seasonality, are highlighted.

Suggested Citation

  • Arndt Feuerbacher & Jonas Luckmann, 2023. "Labour‐saving technologies in smallholder agriculture: An economy‐wide model with field operations," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(1), pages 56-82, January.
  • Handle: RePEc:bla:ajarec:v:67:y:2023:i:1:p:56-82
    DOI: 10.1111/1467-8489.12502
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1467-8489.12502
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1467-8489.12502?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. R. Karina Gallardo & Johannes Sauer, 2018. "Adoption of Labor-Saving Technologies in Agriculture," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 185-206, October.
    2. McMillan, Margaret & Rodrik, Dani & Verduzco-Gallo, Íñigo, 2014. "Globalization, Structural Change, and Productivity Growth, with an Update on Africa," World Development, Elsevier, vol. 63(C), pages 11-32.
    3. Bekkers, Eddy & Koopman, Robert B. & Rêgo, Carolina Lemos, 2021. "Structural change in the Chinese economy and changing trade relations with the world," China Economic Review, Elsevier, vol. 65(C).
    4. Feuerbacher, Arndt & McDonald, Scott & Dukpa, Chencho & Grethe, Harald, 2020. "Seasonal rural labor markets and their relevance to policy analyses in developing countries," Food Policy, Elsevier, vol. 93(C).
    5. Wittwer, Glyn & Banerjee, Onil, 2015. "Investing in irrigation development in North West Queensland, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), April.
    6. Peter B. Dixon & Maureen T. Rimmer, 2021. "Coping with seasonality in a quarterly CGE model: COVID‐19 and U.S. agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 65(4), pages 802-821, October.
    7. Keeny, Roman & Hertel, Thomas, 2005. "GTAP-AGR: A Framework for Assessing the Implications of Multilateral Changes in Agricultural Policies," Technical Papers 283422, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Ramon E. Lopez, 1980. "The Structure of Production and the Derived Demand for Inputs in Canadian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 62(1), pages 38-45.
    9. Rehab Osman & Emanuele Ferrari & Scott McDonald, 2016. "Water Scarcity and Irrigation Efficiency in Egypt," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(04), pages 1-28, December.
    10. Maulik Jagnani & Christopher B Barrett & Yanyan Liu & Liangzhi You, 2021. "Within-Season Producer Response to Warmer Temperatures: Defensive Investments by Kenyan Farmers [Sequential decision making in production models]," The Economic Journal, Royal Economic Society, vol. 131(633), pages 392-419.
    11. Douglas Gollin, 2014. "The Lewis Model: A 60-Year Retrospective," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 71-88, Summer.
    12. Collier, Paul & Dercon, Stefan, 2014. "African Agriculture in 50Years: Smallholders in a Rapidly Changing World?," World Development, Elsevier, vol. 63(C), pages 92-101.
    13. Pauw, Kalie, 2003. "Functional Forms Used in CGE Models: Modelling Production and Commodity Flows," Background Paper Series 15606, PROVIDE Project.
    14. John M. Antle, 1983. "Sequential Decision Making in Production Models," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(2), pages 282-290.
    15. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    16. Dixon, Peter B. & Rimmer, Maureen T., 2013. "Validation in Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1271-1330, Elsevier.
    17. Antle, John M., 1983. "Sequential Decision Making in Production Models," 1983 Annual Meeting, July 31-August 3, West Lafayette, Indiana 279107, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    18. Benfica, Rui & Cunguara, Benedito & Thurlow, James, 2019. "Linking agricultural investments to growth and poverty: An economywide approach applied to Mozambique," Agricultural Systems, Elsevier, vol. 172(C), pages 91-100.
    19. World Bank, 2016. "Bhutan Economic Update, December 2016," World Bank Publications - Reports 26004, The World Bank Group.
    20. Peter B. Dixon & Dale Jorgenson (ed.), 2012. "Handbook of Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier, edition 1, volume 1, number 1.
    21. R G Sargent, 2013. "Verification and validation of simulation models," Journal of Simulation, Taylor & Francis Journals, vol. 7(1), pages 12-24, February.
    22. Peter B. Dixon & Maureen T. Rimmer, 2022. "Who will pay for workplace reforms in U.S. meat‐processing plants? Simulation results from the USAGE model," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(2), pages 400-423, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tshotsho, & Lippert, Christian & Zikeli, Sabine & Krimly, Tatjana & Barissoul, Ayoub & Feuerbacher, Arndt, 2024. "The role of management and farming practices, yield gaps, nutrient balance, and institutional settings in the context of large-scale organic conversion in Bhutan," Agricultural Systems, Elsevier, vol. 220(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. McCullough, Ellen B., 2017. "Labor productivity and employment gaps in Sub-Saharan Africa," Food Policy, Elsevier, vol. 67(C), pages 133-152.
    2. Gautam, Madhur & Ahmed, Mansur, 2019. "Too small to be beautiful? The farm size and productivity relationship in Bangladesh," Food Policy, Elsevier, vol. 84(C), pages 165-175.
    3. Sandhu, Gurmit S. & Phillips, W.E. & Percy, Mike, 1992. "Economic Structural Analysis of the Canadian Agricultural Production Sector," Staff Paper Series 232540, University of Alberta, Department of Resource Economics and Environmental Sociology.
    4. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.
    5. Dixon, Peter & Rimmer, Maureen, 2021. "A GTAP Historical Simulation from 2004 to 2014," Conference papers 333258, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    6. Temple, Jonathan & Ying, Huikang, 2014. "Life During Structural Transformation," CEPR Discussion Papers 10297, C.E.P.R. Discussion Papers.
    7. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Maros Ivanic & Jayson Beckman & Noe Nava, 2023. "Estimation of the Value-Added/Intermediate Input Substitution Elasticities Consistent with the GTAP Data," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 8(2), pages 134-158, December.
    9. Michetti, Melania & Parrado, Ramiro, 2012. "Improving Land-use modelling within CGE to assess Forest-based Mitigation Potential and Costs," Climate Change and Sustainable Development 122862, Fondazione Eni Enrico Mattei (FEEM).
    10. Mun Ho & Wolfgang Britz & Ruth Delzeit & Florian Leblanc & Roberto Roson & Franziska Schuenemann & Matthias Weitzel, 2020. "Modelling Consumption and Constructing Long-Term Baselines in Final Demand," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 63-108, June.
    11. Antle, John M. & Goodger, William A., 1983. "Measuring Stochastic Technology: The Case Of Tulare Milk Production," Working Papers 225708, University of California, Davis, Department of Agricultural and Resource Economics.
    12. Michelson, Hope & Gourlay, Sydney & Lybbert, Travis & Wollburg, Philip, 2023. "Review: Purchased agricultural input quality and small farms," Food Policy, Elsevier, vol. 116(C).
    13. Syud Amer Ahmed & Noah S. Diffenbaugh & Thomas W. Hertel & William J. Martin, 2012. "Agriculture and Trade Opportunities for Tanzania: Past Volatility and Future Climate Change," Review of Development Economics, Wiley Blackwell, vol. 16(3), pages 429-447, August.
    14. Escobar, Neus & Haddad, Salwa & Britz, Wolfgang, 2018. "Economic and environmental implications of a target for bioplastics consumption: A CGE analysis," Conference papers 332940, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Robson, Edward N. & Wijayaratna, Kasun P. & Dixit, Vinayak V., 2018. "A review of computable general equilibrium models for transport and their applications in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 31-53.
    16. Weersink, Alfons & Rozelle, Scott, 1997. "Marketing reforms, market development and agricultural production in China," Agricultural Economics, Blackwell, vol. 17(2-3), pages 95-114, December.
    17. Ahmed, Syud Amer & Diffenbaugh, Noah S. & Hertel, Thomas W. & Lobell, David B. & Ramankutty, Navin & Rios, Ana R. & Rowhani, Pedram, 2009. "Climate Volatility and Poverty Vulnerability in Tanzania," Conference papers 331847, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    18. Jafari, Yaghoob & Britz, Wolfgang & Hasan, Dudu & Roson, Roberto & Sartori, Martina, 2020. "Can Food Waste Reduction in Europe Help to Increase Food Availability and Reduce Pressure on Natural Resources Globally?," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 69(2), May.
    19. Savona, Maria & Ciarli, Tommaso, 2019. "Structural Changes and Sustainability. A Selected Review of the Empirical Evidence," Ecological Economics, Elsevier, vol. 159(C), pages 244-260.
    20. Stone, Susan F. & Strutt, Anna & Hertel, Thomas, 2009. "Assessing Socioeconomic Impacts of Transport Infrastructure Projects in the Greater Mekong Subregion," Conference papers 331872, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajarec:v:67:y:2023:i:1:p:56-82. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.