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Micro insights on the pathways to agricultural transformation: Comparative evidence from Southeast Asia and Sub‐Saharan Africa

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  • Mulubrhan Amare
  • Priyanka Parvathi
  • Trung Thanh Nguyen

Abstract

Most studies of agricultural transformation document the impact of agricultural income growth on macroeconomic indicators of development. Much less is known about the micro‐scale changes within the farming sector that signal a transformation precipitated by agricultural income growth. This study provides a comparative analysis of the patterns of micro‐level changes that occur among small‐holder farmers in Uganda and Malawi in Sub‐Saharan Africa (SSA), and Thailand and Vietnam in Southeast Asia (SEA). Our analysis provides several important insights on agricultural transformation in these two regions. First, agricultural income in all examined countries is vulnerable to changes in precipitation and temperature, an effect that is nonlinear and asymmetric. SSA countries are more vulnerable to these weather changes. Second, exogenous increases in agricultural income in previous years improve non‐farm income and trigger a change in labor allocation within the rural sector in SEA. However, this is the opposite in SSA where the increase in agricultural income reduces non‐farm income, indicating a substitution effect between farm and non‐farm sectors. These findings reveal clear agricultural transformation driven by agricultural income in SEA but no similar evidence in SSA. La plupart des études sur la transformation agricole documentent l'impact de la croissance des revenus agricoles sur les indicateurs macroéconomiques de développement. On en sait beaucoup moins sur les changements à petite échelle au sein du secteur agricole qui signalent une transformation précipitée par la croissance des revenus agricoles. Cette étude fournit une analyse comparative des modéles de micro‐changements qui se produisent chez les petits exploitants agricoles en Ouganda et au Malawi en Afrique subsaharienne (ASS), et en Thaїlande et au Vietnam en Asie du Sud‐Est (SEA). Notre analyse fournit plusieurs informations importantes sur la transformation agricole dans ces deux régions. Premiérement, le revenu agricole dans tous les pays examinés est vulnérable aux variations des précipitations et de la température, un effet non linéaire et asymétrique. Les pays d'ASS sont plus vulnérables à ces changements climatiques. Deuxiémement, les augmentations exogénes du revenu agricole au cours des années précédentes améliorent le revenu non agricole et déclenchent un changement dans la répartition de la main‐d'œuvre au sein du secteur rural en SEA. Cependant, c'est l'inverse en ASS où027;augmentation des revenus agricoles réduit les revenus non agricoles, indiquant un effet de substitution entre les secteurs agricole et non agricole. Ces résultats révélent une transformation agricole claire induite par le revenu agricole en SEA, mais aucune preuve similaire en ASS.

Suggested Citation

  • Mulubrhan Amare & Priyanka Parvathi & Trung Thanh Nguyen, 2023. "Micro insights on the pathways to agricultural transformation: Comparative evidence from Southeast Asia and Sub‐Saharan Africa," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(1), pages 69-87, March.
    • Handle: RePEc:bla:canjag:v:71:y:2023:i:1:p:69-87
    DOI: 10.1111/cjag.12326
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