Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/117325
Authors: 
Krishna, Vijesh V.
Euler, Michael
Siregar, Hermanto
Fathoni, Zakky
Qaim, Matin
Year of Publication: 
2015
Series/Report no.: 
EFForTS Discussion Paper Series 13
Abstract: 
The study examines the heterogeneous livelihood impacts of oil palm expansion among smallholder farmers in Jambi Province, Sumatra. Per-capita annual consumption expenditure (PACE) is chosen as a quantitative measure of livelihood status of farm-households. Its determinants are estimated using standard treatment-effect and endogenous switching regression models. After controlling for self-selection bias, adopters of oil palm are found increasing their PACE significantly in comparison to the counterfactual. On the other hand, most of the non-adopters are better-off without oil palm, presenting a strong case of comparative advantage. Differential consumption impacts of observed variables are evident across adoption and non-adoption regimes. In general, farm-households with higher opportunity cost of family labour benefit disproportionately more with oil palm adoption.
Subjects: 
adoption
agricultural development
endogenous switching
impact
Indonesia
farmer welfare
JEL: 
O12
O33
Q12
P36
R14
Persistent Identifier of the first edition: 
Creative Commons License: 
http://creativecommons.org/licenses/by-nd/4.0/
Document Type: 
Working Paper

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