No abstract

This study examines the impact and implications of the East African Community and the Common Market for Eastern and Southern Africa preferential trade agreements on coffee export performance of eight East and Southern African countries. The analysis employed a static and dynamic gravity modelling framework for the period 1998-2013. Following several robustness checks, the study found that regional trade agreements play a vital role in increasing coffee trading in East and Southern African countries. Factors including geographical distances, income, and population size in importing and exporting countries are also statistically significant determinants of coffee exports. The study also found that the exporting countries are currently under-performing with respect to their maximum potential to the global market indicating room for improvement.

Mussel farming has been suggested as a low-cost option for reducing nutrient content in eutrophied waters. This study examines whether mussel farming contributes to reductions in total nutrient abatement cost and increases in equity for achieving nutrient load reduction targets to the Baltic Sea under different international policy regimes (cost-effective, country targets set by the Baltic Sea Action Plan (BSAP), and nutrient-trading markets). A cost-minimizing model is used to calculate the cost savings, and the analytical results show that mussel farming is a cost-effective option only when the marginal abatement cost is lower than for other abatement measures. The numerical cost-minimizing model of the Baltic Sea indicates that the largest abatement cost reductions from introduction mussel farming, approximately 3.5 billion SEK (9.36 SEK = 1 Euro), are obtained under the cost-effective and nutrient-trading systems. Equity, as measured by abatement cost in relation to affordability in terms of gross domestic product, is improved by mussel farming under the cost-effective regime but reduced under the BSAP country targets and nutrient-trading regimes.

This article examines the effects of neighborhood on the farmer's technical efficiency (TE) level, adopting a stochastic frontier and spatial Durbin regression models. Our study exploits a three-wave household-level panel data from the Ethiopian Rural Socioeconomic Survey (ERSS) collected between 2011 and 2015. We find that farmers have an average TE score of 53%, implying a substantial potential for improvement in the production level. We further find that there is a positive and statistically significant spatial interdependence in TE levels between farms in neighboring communities. Input use, education, and other demographic characteristics are found to have significant positive direct and indirect effects. The findings suggest that policies and programs targeting productivity improvements in agriculture need to consider spatial spillover effects.

Previous studies indicate that cash crop producers in developing countries are, in comparison to other farmers, more inclined to spend a share of their income on information communication technologies (ICT). In some cases however, it is not known whether the larger cash crop producers are spending more on ICT because they are wealthier, or if the cash crop farms that make more use of ICT services have in the past been able to accumulate wealth faster. This paper attempts to understand this causality for the case of smallholder farmers in rural villages of southern Ethiopia. In the analysis, special emphasis is placed on the role of market participation and the role of investments into ICTs for household income generation. Results from Two Stage Least Square (2SLS) regressions indicated that income is the most significant driver of farmers' spending behavior on ICT goods and services, while being a cash crop producer is the most important determinant of having a relatively high income. Thus, especially investment into mobile phones and cash crop production appear to be complementary.