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| Journal of Asian Business and Economic Studies |
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Vol. 30(2)
, June 2023, Page 126–142
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| Impact of food price increases on poverty in Indonesia: empirical evidence from cross-sectional data |
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| Faharuddin Faharuddin & M. Yamin & Andy Mulyana & Y. Yunita |
DOI: https://doi.org/10.1108/JABES-06-2021-0066
Abstract
Purpose
Using cross-sectional household survey data, this paper aims to determine the impact of food price increases on poverty in Indonesia.
Design/methodology/approach
This paper uses the quadratic almost ideal demand system applied to the 2013 Indonesian household survey data. The impact of food price increase on household welfare is calculated using a welfare measure, compensating variation.
Findings
Three food groups with the most outstanding price impact on poverty, rice, vegetables and fish, were studied. The 20% increase in the price of each food group causes an increase in the headcount ratio by 1.360 points (rice), 0.737 points (vegetables) and 0.636 points (fish). Maintaining food price stability for these food groups is very important because the more the price increases, the more the impact on poverty. Food price policies in rural areas are also more critical than in urban areas because the impact of food price increases in rural areas is higher.
Research limitations/implications
This paper does not consider the positive impact of rising food prices on food-producing households.
Practical implications
Implementing appropriate poverty alleviation policies through food policies for main food groups and social protection.
Social implications
Promoting rural development policies and agricultural growth.
Originality/value
This paper contributes to the existing literature by providing empirical results regarding the impact of domestic food prices increase on poverty in Indonesia.
Keywords
Food price increase, Poverty, Indonesia, QUAIDS, Compensating variation
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Determinants of demand for credit by smallholder farmers': a farm level analysis based on survey in Sindh, Pakistan
2021, Journal of Asian Business and Economic Studies
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Abstract
Purpose
In the developing countries, formal credit has dominant role for the development of agriculture sector. It increases the farmer's purchasing power for better farm inputs and agricultural technology for high crop productivity. The main purpose of this study is to examine the influence of socioeconomic characteristics of smallholder farmers for credit demand in Sindh, Pakistan.
Design/methodology/approach
A cross-sectional data set randomly collected from 90 smallholder farmers in Thatta district, Sindh, Pakistan, is examined. Descriptive statistics, correlation and the OLS regression method were used to demonstrate the important factors affecting the demand for formal credit.
Findings
The results revealed that formal education, experience of farming, landholding size, road access and extension contacts positively and significantly influenced the demand for formal credit.
Originality/value
This study is the first, to the best of authors' knowledge, to demonstrate the influence of various socioeconomic characteristics of smallholder farmers on demand for formal credit in Sindh, Pakistan. It also illustrates the imperative contribution to the literature regarding credit access and demand to improve the agricultural productivity.
Determinants of Agricultural Technology Adoption: A Case Study in Floricultural sector of Lam Dong province and Ho Chi Minh City, Vietnam
2020, Journal of Asian Business and Economic Studies
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Abstract
Floriculture is an important agricultural sector of Lam Dong province and Ho Chi Minh City, Vietnam. The favorable climate conditions of Lam Dong province have led to the strong development of the floriculture sector, while high demand due to lifestyle changes in Ho Chi Minh City promises a potential market for the cut orchid industry. The adoption of modern technology is vitally important for small-scale producers, because it not only improves the quality but also increases the yield of flower production. However, very little research has been conducted on the adoption of technology in the floriculture industry at the farm level. A sample of 228 producers was therefore collected in Lam Dong province and Ho Chi Minh City in 2018 to investigate the current status of, and influential factors for, technology adoption by floriculture producers in the South of Vietnam. Conditional mixed-process probit models were applied to examine decisions on the adoption of technologies associated with greenhouse, irrigation and seedlings in floriculture. The results reveal that farmers have strong preferences in terms of modern floriculture technologies and that demographic characteristics such as gender, age, education and income, as well as farm size, learning process, farmers’ perception of technology and market information are the key determinants of technology adoption in floriculture
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