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Development policies, resource constraints, and agricultural expansion on the Philippine land frontier

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  • Coxhead, Ian
  • Shively, Gerald
  • Shuai, Xiaobing

Abstract

This paper examines ways in which development policies interact and influence incentives for agricultural expansion in frontier areas. We develop a model of household response to economic and technical stimuli, conditional on agronomic and household characteristics. We evaluate the model empirically using survey data gathered from low-income corn and vegetable farms near a national park in the southern Philippines. We find that within farms, land allocation is responsive to relative crop prices and yields. However, different crops elicit different responses. In particular, some crop expansion takes place primarily through land substitution and intensified input use, while changes in prices or yields of other crops induce an expansion of total farm area. Land and family labor constraint bind at different points for different crops. These results suggest that because multiple policies interact, environmental policies must have multiple strands in order to replace incentives to further land expansion.JEL codes: Q12, Q24, O13.

Suggested Citation

  • Coxhead, Ian & Shively, Gerald & Shuai, Xiaobing, 2002. "Development policies, resource constraints, and agricultural expansion on the Philippine land frontier," Environment and Development Economics, Cambridge University Press, vol. 7(2), pages 341-363, May.
    • Handle: RePEc:cup:endeec:v:7:y:2002:i:02:p:341-363_00
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    References listed on IDEAS

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    1. Coxhead, Ian A., 1997. "Induced innovation and land degradation in developing country agriculture," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 41(3), pages 1-28.
    2. Heath, John & Binswanger, Hans, 1996. "Natural resource degradation effects of poverty and population growth are largely policy-induced: the case of Colombia," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 65-84, February.
    3. Shively, Gerald E., 1998. "Economic policies and the environment: the case of tree planting on low-income farms in the Philippines," Environment and Development Economics, Cambridge University Press, vol. 3(1), pages 83-104, February.
    4. Shively, Gerald E., 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low-income farmers in the Philippines," Agricultural Economics, Blackwell, vol. 17(2-3), pages 165-177, December.
    5. Gerald E. Shively, 1997. "Consumption risk, farm characteristics, and soil conservation adoption among low‐income farmers in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 17(2-3), pages 165-177, December.
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    7. Shively, Gerald E., 1999. "Risks and returns from soil conservation: evidence from low-income farms in the Philippines," Agricultural Economics, Blackwell, vol. 21(1), pages 53-67, August.
    8. Gerald E. Shively, 1999. "Risks and returns from soil conservation: evidence from low‐income farms in the Philippines," Agricultural Economics, International Association of Agricultural Economists, vol. 21(1), pages 53-67, August.
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    Cited by:

    1. Barbier, Edward B., 2020. "Long run agricultural land expansion, booms and busts," Land Use Policy, Elsevier, vol. 93(C).
    2. Coxhead, Ian, 2000. "Consequences of a Food Security Strategy for Economic Welfare, Income Distribution and Land Degradation: The Philippine Case," World Development, Elsevier, vol. 28(1), pages 111-128, January.
    3. Coxhead, Ian A. & Jayasuriya, Sisira, 2003. "Trade, Liberalization, Resource Degradation and Industrial Pollution in Developing Countries: An Integrated Analysis," Staff Papers 12691, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    4. Barbier, Edward B., 2016. "Is green growth relevant for poor economies?," Resource and Energy Economics, Elsevier, vol. 45(C), pages 178-191.
    5. repec:phd:pjdevt:pjd_2002_vol__xxix_no__1-c is not listed on IDEAS
    6. Upadhyay, T.P. & Solberg, Birger & Sankhayan, Prem L., 2006. "Use of models to analyse land-use changes, forest/soil degradation and carbon sequestration with special reference to Himalayan region: A review and analysis," Forest Policy and Economics, Elsevier, vol. 9(4), pages 349-371, December.
    7. repec:phd:pjdevt:pjd_2002_vol__xxix_no__1-e is not listed on IDEAS
    8. Catherine C. Sang & Daniel O. Olago & Tobias O. Nyumba & Robert Marchant & Jessica P. R. Thorn, 2022. "Assessing the Underlying Drivers of Change over Two Decades of Land Use and Land Cover Dynamics along the Standard Gauge Railway Corridor, Kenya," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    9. Sarah Turner & Thi-Thanh-Hiên Pham, 2015. "“Nothing Is Like It Was Before”: The Dynamics between Land-Use and Land-Cover, and Livelihood Strategies in the Northern Vietnam Borderlands," Land, MDPI, vol. 4(4), pages 1-30, November.
    10. Coxhead, Ian A. & Demeke, Bayou, 2006. "Modeling Spatially Differentiated Environmental Policy in a Philippine Watershed: Tradeoffs between Environmental Protection and Poverty Reduction," 2006 Annual meeting, July 23-26, Long Beach, CA 21115, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    11. Eppink, Florian V. & van den Bergh, Jeroen C.J.M. & Rietveld, Piet, 2004. "Modelling biodiversity and land use: urban growth, agriculture and nature in a wetland area," Ecological Economics, Elsevier, vol. 51(3-4), pages 201-216, December.
    12. Coxhead, Ian A., 2002. "Development And The Environment In Asia: A Survey Of Recent Literature," Staff Papers 12650, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    13. Coxhead, Ian A. & Rola, Agnes, 1999. "Do National Markets And Price Policies Affect Land Use At The Forest Margin? Evidence From The Philippines," Staff Papers 12602, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    14. Reetz, Sunny W.H. & Schwarze, Stefan & Brümmer, Bernhard, 2012. "Poverty and Tropical Deforestation by Smallholders in Forest Margin Areas: Evidence from Central Sulawesi, Indonesia," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126326, International Association of Agricultural Economists.
    15. Jones, Alison Snow & Beach, Robert H. & Johnston, Stephen A., 2005. "Tobacco Farmer Interest and Success in Diversification," 2005 Annual meeting, July 24-27, Providence, RI 19151, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    16. Barbier, Edward B., 2013. "Structural change, dualism and economic development : the role of the vulnerable poor on marginal lands," Policy Research Working Paper Series 6456, The World Bank.
    17. Barbier, Edward B., 2020. "Is green rural transformation possible in developing countries?," World Development, Elsevier, vol. 131(C).
    18. Edward Barbier & John Bugas, 2014. "Structural change, marginal land and economic development in Latin America and the Caribbean," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-29, December.
    19. Bayou Demeke & Ian Coxhead, 2005. "The Effect of National Policies and Labor Market on Land Use Decisions in Developing Countries: An Application of Maximum Simulated Likelihood to System of Censored Acreages with Panel Data," Others 0503007, University Library of Munich, Germany.
    20. Shively, Gerald E. & Pagiola, Stefano, 2001. "Poverty, Agricultural Development, And The Environment: Evidence From A Frontier Region Of The Philippines," 2001 Annual meeting, August 5-8, Chicago, IL 20532, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Briones, Roehlano M. & David, Cristina C. & Inocencio, Arlene B. & Intal, Ponciano Jr. S. & Geron, Maria Piedad S. & Ballesteros, Marife M., 2012. "Monitoring and Evaluation of Agricultural Policy Indicators," Discussion Papers DP 2012-26, Philippine Institute for Development Studies.
    22. Neumann, Kathleen & Verburg, Peter H. & Stehfest, Elke & Müller, Christoph, 2010. "The yield gap of global grain production: A spatial analysis," Agricultural Systems, Elsevier, vol. 103(5), pages 316-326, June.
    23. Barbier, Edward B., 2012. "Natural capital, ecological scarcity and rural poverty," Policy Research Working Paper Series 6232, The World Bank.
    24. Edward B. Barbier & Jacob P. Hochard, 2019. "Poverty-Environment Traps," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(3), pages 1239-1271, November.

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    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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