This is one of my PhD works titled "Effects of Non-farm Employments on Poverty among Small Households in Developed Villages of Bangladesh: A Case of Comilla Sadar Upazila" presented at
111 EAAE-IAAE Seminar ‘Small Farms: decline or persistence’ University of Kent, Canterbury, UK dated
26th-27th June 2009
1. 111 EAAE-IAAE Seminar ‘Small Farms: decline or persistence’ University of Kent, Canterbury, UK 26th-27th June 2009 Title Effects of Non-farm Employments on Poverty among Small Households in Developed Villages of Bangladesh: A Case of Comilla Sadar Upazila Authors Mohammad Abdul Malek The United Graduate School of Agricultural Sciences, Tottori University, Japan. Email: [email_address] And Koichi Usami, PhD Professor, Faculty of Agriculture, Yamaguchi University, Japan.
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6. Definitions of the exogenous variables Availability of government primary schools within 1 km reach (1 if yes) primy_s Proximity to school Availability of growth centers, market or bazar within 1 km reach (1 if yes) Growth_c Proximity to business center Community level Is household receiving any technical assistance/advice from formal sources? (1 if yes) Acc_ta Is household receiving any credit from formal sources? (1 if yes) Acc_credit Is household receiving any assistance from friends, relatives, neighbors? (1 if yes) Acc_frn Is household involved with any GO/NGO/Cooperative/business association etc.? (1 if yes) acc_org Social capital Household non-farm entrepreneurs` education (schooling years) Hhentr_edn Entrepreneur's education Per capita education squared (schooling years squared) hpc_edu2 Per capita education Per capita education (schooling years) hpc_edu hhh education (schooling years) Hhh_edu hhh education Dependents-workers ratio depwkrs Children-female adults ratio child_fem Female adults (numbers) femadult Economic dependency Household head (hhh) gender (1 if male) Hhh_gen Gender Household members (numbers) HH_size Size Household calorie needs (k.cal/day) hcaln Food requirement Household other unearned (rentals, pensions, interest, gifts, etc.) income (BDT) Oundinc Household out-country remittance employment income (BDT) Outc_remit Household in-country remittance employment income (BDT) iinc_remit Household non-farm wage-employment income (BDT) nfwempinc Household non-farm self-employment income (BDT) nfsempinc Household farm wage income (BDT) Famwaginc Sector-wise NFIs Household NFI total (BDT) hnfinc_t Non-farm income (NFI) total Household farm income (BDT) Farminc Farm income Household per capita income (BDT) Hhpc_inc Per capita income A household is diversified if a single income source contributes less than 75% of its income (1 if yes) divsn Income diversification At least one worker employed in out-country remittance employments (1 if yes) owoutcre At least one worker employed in in-country remittance employments (1 if yes) owincrem At least one worker employed as salaried employments in the local formal sector (1 if yes) owfors At least one worker employed as relatively high-productive non-farm enterprises (1 if yes) owhrnfe Strengths to non-farm labor market (SNFLM) No of working persons involved in HNFEs hnfel No of working persons involved in household farming Farm_l Production workers Whether household uses hired farm worker (1 if yes) hired_l Whether household owns poultry, fisheries and livestock (1 if yes) whhpl Share of principal (rice) crops (%) Sprincrp Landholdings under cultivation squared (acres squared) Land_culn2 Landholdings under cultivation (acres) Land_cultn Farm production structures Landholdings owned (acres) landhold Principle physical capital Household level Individual income sources (numbers) I_insc Multiple Income sources Individual education squared (schooling years squared) I_edu2 Individual education (schooling years) I_edu Education Individual age squared (years squared) I_age2 Individual age (years) I_age Age Individual gender (1 if male) I_gen Gender Individual level Description Var_names Characteristics Levels
7. Analytical models at a glance.. Do Do 1 if individual participates in non-farm wage employments Do Do Farm wage employment income Do Do Out-country remittance income Do Do In-country remittance income Do Do Non-farm wage employment income Do Do 1 if individual participates in in-country remittance employments Do Do 1 if individual participates in out-country remittance employments Do Do 1 if individual participates in farm wage employments Double hurdle (Censored Tobit) Do Non-farm self-employment income Level of participation in sector-wise NFEs Double hurdle (Probit) Do 1 if individual participates in non-farm self-employments Participation in sector-wise NFEs Double hurdle (Censored Tobit) Do Individual income gained from all NFEs Level of participation in overall NFEs Participation in overall NFEs Double hurdle (Probit) Individual level (gender, age, education, multiple income sources), household level (principal physical capital, income diversification, SNFLM, size, economic dependency, hhh education, social capital), community level (proximity to business center) 1 if individual participates Participating factors Methods Explanatory variables Dependent variables Models
8. Analytical models at a glance Tobit, OLS Principle physical capital, non-farm worker, income diversification, farm income, sector-wise NFIs, gender, size, entrepreneur's education, social capital, proximity to growth center Do Model 2 Tobit, OLS Farm production structures, farm production workers, income diversification, Farm income, sector-wise NFIs, gender, size, education, social capital, proximity to business center Do Model 2 Model 1 Model 1 Education poverty severity Education poverty gap Education poverty incidence Income poverty severity Income poverty gap Income poverty incidence Model 2 Model 1 OLS Do Squared education poverty gap ratio OLS Do Education poverty gap Probit Per capita income, Income diversification, SLFLM, gender, size, economic dependency, principal physical capital, proximity to school 1 if household is education poor, 0 Otherwise Education poverty (2considerations) OLS Do Squared Income poverty gap ratio OLS Do Income poverty gap Probit Income diversification, SLFLM, gender, size, per capita education, economic dependency, principal physical capital, proximity to growth center 1 if household is income poor, 0 Otherwise Income poverty 2SLS Food requirements, income diversification, farm income, sector-wise NFIs, farm production structures, size, economic dependency, education, proximity to growth center Do 2SLS Food requirements, income diversification, farm income, NFI total, farm production structures, size, economic dependency, education, proximity to growth center Log of calorie adequacy ratio for a household/day Calorie adequacy Consumption effects (Poverty) Tobit, OLS Principle physical capital, non-farm production worker, income diversification, farm income, NFI total, gender, size, entrepreneur's education, social capital, proximity to growth center Working capital at non-farm enterprises Non-farm Tobit, OLS Farm production structures, farm production workers, income diversification, farm income, NFI total, gender, size, hhh education, per capita education, social capital, proximity to business center C ash value of external inputs at household f arming Farm Production effects Methods Explanatory variables Dependent variables Models for the effects of NFEs
9. Study location- Study upazila Basic characteristics of Comilla Sadar Upazila , 2005 Source: Focus group discussion with key informants (2006) Being assigned “Export Processing Zone (EPZ)” at Comilla. 7) Others Farm input business, farm products trade and agro-processing, transport and construction business, restaurants, handicrafts and cottage industries, grocery, etc. 6)Major trade and commerce About 30 rural markets and 7 growth centers. 5) Rural markets/ Growth centers Connected by national highway and national railway with Dhaka and Chittagong. 4) Modes of transport Full-time farm households (10%), part-time farm households (70%), full-time non-farm households (20%). 3)Level of dependency on farming 75% 2) Literacy level Comilla district in the Division of Chittagong. About 100 km southwest of the capital city Dhaka. 1) Location Characteristics Item
10. Donpur Moddo Bijoypur Raicho Joshpur Study location- Study villages Urban area in Comilla Sadar Upazila
11. Sample of the study Sampling method : 2-stage sampling Population : 1148 (The hhs whose income sources are not only farming) Survey duration ◊ August 17–September 20 2006 ◊ 6 April-18 May 2008 Data collection Method Structured questionnaire, focus group discussion, and researcher's own observation. Sampling unit Sample size Small Households (landless 16%, marginal 54%and small landholdings 30%) 175
12. Participation and income share of small household workers by economic activities in Comilla Sadar Upazila 2007(N=377) Results and discussion 100.0 100.0 Total 2.11 33.8 16.0 Out-country remittance employments 1.02 4.3 4.2 In-country remittance employments 0.77 18.0 23.4 Non-farm wage employments 1.61 29.2 18.1 Non-farm self-employments 0.46 2.5 5.4 Farm wage employments 1.31 87.8 67.0 NFAs as a whole 0.37 12.3 33.0 Own farming Income share/ participation ratio Income share (%) Participation (%) Activities
13. Notes: 1) Numbers in parenthesis are standard errors; 2) Statistical significance: *** at 1%, **at 5%, * at 10% levels, respectively; and 3) Variables are standardized Determinants of individual participation and level of participation in overall NFEs among small household workers in Comilla Sadar Upazila in 2007 : Probit and Censored Tobit estimates (N=377) 61 .. Left censored obs at <=0 0.0000 0.0000 Prob> chi 2 141.31 155.41 LR Chi 2 (23) -50666.48(17683.64) .023(.512) Constant 20560.47 ** (9154.19) .657 ** (.286) Growth_c -2660.32(11178.22) .068(.370) Acc_frn 9664.95(11380.25) 1.032 ** (.472) Acc_ta -8743.68(9505.44) .198(.363) Acc_credit 15865.85 * (9062.29) -.689 ** (.331) acc_org 14305.28 *** (4569.36) .059(.148) landhold 531.80(13904.56) -.094(.564) hpc_edu2 -11818.68(14653.85) -.207(.561) hpc_edu 1562.08(3627.32) .274(.183) depwkrs 4357.31(5360.1) -.013(.190) child_fem 8301.28(6167.97) -.025(.220) femadult -5359.76(5751.48) -.017(.175) HH_size 18064.28 * (9832.62) -.686 ** (.342) owoutcre 29255.05 ** (13250.48) .239(.453) owincrem 26775.35 *** (10743.65) 1.284 ** (.617) owfors 34976.27 *** (7954.42) .367(.290) Owhrnfe -19188.29 *** (7466.60) .027(.247) divsn 5586.08(3891.13) 1.419 *** (.373) I_insc 3078.94(7764.44) 1.653 ** (.719) I_edu2 16864.39 * (9095.27) -.749(.511) I_edu -67344.26 *** (19770.99) -.758(.607) I_age2 56251.68 *** (19229.27) .1575(.624) I_age 60178.92 *** (11689.5) 1.553 *** (.309) I_gen Level of participation Participation Exogenous variables