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Non-traditional crops, traditional constraints : long-term welfare impacts of export crop adoption among guatemalan smallholders

Author:	Carletto, Calogero; Kilic, Talip; Kirk, Angeli;	Collection Title:	Policy Research working paper ; no. WPS 5142
Country:	Guatemala;	Date Stored:	2009/11/30
Document Date:	2009/11/01	Document Type:	Policy Research Working Paper
Language:	English	Major Sector:	Agriculture, fishing, and forestry
Rel. Proj ID:	GT-Non-Traditional Crops, Traditional Constraints: Are Smallholder -- -- P111817;	Region:	Latin America & Caribbean
Report Number:	WPS5142	Sub Sectors:	Crops
SubTopics:	Regional Economic Development; Economic Theory & Research; Crops and Crop Management Systems; Rural Poverty Reduction; Rural Development Knowledge & Information Systems	Volume No:	1 of 1

Summary: This study documents the long-term welfare effects of household non-traditional agricultural export (NTX) adoption. The analysis uses a unique panel dataset, which spans the period 1985-2005, and employs difference-in-differences estimation to investigate the long-term impact of non-traditional agricultural export adoption on changes in household consumption status and asset position in the Central Highlands of Guatemala. Given the heterogeneity in adoption patterns, the analysis differentiates the impact estimates based on a classification of households that takes into account the timing and duration of non-traditional agricultural export adoption. The results show that while, on average, welfare levels have improved for all households irrespective of adoption status and duration, the extent of improvement has varied across groups. Long-term adopters exhibit the smallest increase in the lapse of two decades, in spite of some early gains. Conversely, early adopters who withdrew from non-traditional agricultural export production after reaping the benefits of the boom period of the 1980s are found to have fared better and shown greater improvements in durable asset position and housing conditions than any other category.


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