commercialization & food security outcomes: chi-square test

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Commercialization & Food Security Outcomes: chi-square Test. Source: Babu and Sanyal (2009). Commercialization. - PowerPoint PPT Presentation

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Table 3.1 Cross-tabulation results of cash crop growers and CALREQ

Commercialization & Food Security Outcomes:chi-square TestSource: Babu and Sanyal (2009)CommercializationConcept: Refers to growing cash crops; it may also include traditional crops (grown for self-consumption) if one markets the produced surplus or adopts a purchased input technology.

Measure: Proportion of agricultural production that is marketedCommercializationAdvantages: Growth in income, hence, food and nutrition security.Disadvantages: Growth at the cost of subsistence crops, hence, food and nutrition security.Query: Trace the macro economic and distributional consequences with respect to socio-economic-regional profiles.

CommercializationAdvantages Process specification:1. cash crops contribute to livelihood diversification and improve food and nutrition security by directly increasing the farm households income earning potential which, in turn, increases the households spending potential. 2. Most cash crops tend to be labor intensive, cash cropping entails a substantial expansion of the demand for hired labor. This employment effect for households that hire out labor may represent significant livelihood improvement3. Introduction of cash crops contributes to the development of rural financial markets, which partially relieves the cash constraints. 4. Cash cropping opportunities are also accompanied by improved technology.

CommercializationCounter arguments:1. Missing Factor Markets and hence limited scope for uniform spread of income and employment benefits of commercialization across households 2. Weak financial markets for expenditure and consumption smoothing.Issue: Verify empirical evidence on commercialization, food and nutrition security.

Effects of CommercializationCrucial three characteristics of intrahousehold decision making: 1. Household consumption expenditure allocation between food and non-food (mainly health and sanitation). 2. Allocation of food expenditure among the various types and quantities of foods. 3. Distribution of food and other consumption items among household members. 4. Gender allocation of time, labor and control of income.

IssuesIs it more likely for a cash crop growing household than a traditional crop growing household to be food secure? Is it more likely for a cash crop growing household than a traditional crop growing household to have children with adequate nutrition, i.e. absence of malnutrition?

Verification RequirementsInformation on household characteristics such as incomes by family members, expenditure on food and non-food items, demographic characteristics of the members and food intake by family members. Measures of the childrens nutritional status. Test procedure: Pearsons chi-square test to determine if the observed relationship between the nominal or categorical variable is statistically significant or is due to random variability.

Empirical AnalysisEvidence from MalawiCASHCROP: tobacco, groundnuts, cotton and plantain (major cash crops in Malawi).Dummy variable CASHCROP = 1 if the household grows at least one of these four major cash crops and 0 otherwise. CASHCROP a measure of commercialization of agriculture at the household level. Empirical AnalysisHousehold food security measures:1) f(dependency ratio, number of meals)2) Per adult equivalent calorie intake (CALADEQ)Food security: Households that can satisfy at least 80 per cent of the requirement for calorie intake.Nutrition MeasuresZHANEW, ZWANEW, and ZWHNEW: the Z-scores that identify malnutrition in children ZHA (height for age Z-score), ZWA (weight for age Z-score) and ZWH (weight for height Z-score). ZHANEW indicates presence or absence of stunting,ZWANEW indicates if the child has low weight for age ,ZWHNEW indicates the presence or absence of wasting.

Nutrition MeasuresProcedure:

1. Exclude Z-scores with absolute values 5 (outliers)2. two categories for three indicators of malnutrition are: (i) Z-score 0.1. Do not reject null hypothesis that there is no observed pattern of relationship between cash crop growing and underweight preschoolers.Incidences of underweight preschoolers are not statistically different between these two groups.

Table 3.9 Chi-square tests between CASHCROP and weight for height Z-scores for children under 5 yearsValue p valueTest statistic5.1310.023Number of valid cases 234Commercialization and Wastingp value = 0.023 and is significant. Cash crop growing reduces the incidence of wasting among preschoolers. Weight for height Z scores (WHZ) are a short-term indicator of nutritional status and, at least in the short run, cash crop growing can benefit households by generating greater income and achieving food security. Improvement in food security status leads to greater distribution of food and other resources at the intra-household level which, in turn, alleviates the problem of malnutrition for preschoolers.

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