Agriculture Reference
In-Depth Information
APPENDIX: ECONOMETRIC RESULTS
Two sets of econometric analyses were carried out. The first examined the deter-
minants of individual access to non-farm employment. The second concentrated on
the possible effects of non-farm income on farm decision-making and natural
resource management.
Access to non-farm employment
Table A1.1 presents the detailed results from the estimation of an ordered probit
model with the extent of individual participation in non-farm employment as the
dependent variable. This takes three possible values: 0 for absence of non-farm
employment, 1 for some non-farm employment, and 2 for only non-farm employ-
ment. The table presents the coefficients for the various explanatory variables, as
well as the marginal effects (together with standard errors) evaluated at the means of
the explanatory variables, for each of the three possible values of the extent of non-
farm employment. Various specifications of explanatory variables were evaluated,
using information criteria tests (as described in Cameron and Trivedi 2005).
The principal results have been summarized in the main text of the chapter, in
particular the increase in probability that an individual engages either part-time or
full-time in non-farm employment associated with zones closer to urban centres.
Note that the traditional zone is the benchmark and is, thus, not listed in Table A1.1.
An additional point worth mentioning here is the marginal effect of location on the
extent of non-farm employment. This is actually somewhat higher in the leakage to
urban areas zone than in the new urban links. But the difference is modest and we
concentrate attention on the comparison with the locally linked and traditional
zones.
Use of external inputs by households and soil fertility management
Table A1.2 presents results of two simple lognormal regression models of farm
management variables: use of variable inputs and the soil nitrogen balance. As with
Table A1.1, the traditional zone is the benchmark. The main results are described in
the text, as well as those of the more detailed analysis of fertilizer use, where the
models are interpreted primarily from a descriptive perspective.
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