Gambling with Liberalization: Smallholder Livelihoods in Contemporary Rural Malawi

This paper examines the livelihoods of smallholder households in Malawi based on information derived from six villages in various parts of the country. Through detailed analysis of own-farm production and off-farm economic activities, the study explores similarities, diversities, and disparities in rural livelihoods. Liberalization policies and the high risk of crop failure have produced large disparities between those who achieve high income from own-farm production and those who do not. Off-farm income can help to reduce the risk of own-farm production, but is also a source of income disparity and provides little opportunity for upward economic mobility to escape poverty.

Diversities and Disparities among Female-Headed Households in Rural Malawi

Using data obtained from a survey carried out in six villages in various parts of rural Malawi, this paper examines some of the main characteristics of female-headed households. In the study villages, most female-headed households are in a disadvantageous position relative to their male counterparts in terms of labour endowment, farm size, and agricultural productivity. The high cost of inputs, especially of fertilizer, prevents resource-poor female-headed households from improving maize self-sufficiency through increased productivity and from engaging in high-return agriculture such as tobacco production. The paper also shows that there are marked disparities within the category of female-headed households. Factors that enable some female-headed households to achieve high income include the availability of high-return nonfarm income opportunities, use of social networks to obtain labour and income opportunities, land acquisition through flexible applications of inheritance rules, and the existence of informal tobacco marketing. Livelihood diversification is adopted by both male- and female-headed households, but many of the female-headed households engage in low-return and low-entry-barrier activities such as agricultural wage labour. On the other hand, the high off-farm income in the wealthier female-headed households enables them to purchase fertilizer for own-farm production, contributing to an improvement in productivity and resultant increases in their total income.

Measuring the effect of agricultural cooperatives on household income using PSM-DID : a case study of a rice-producing cooperative in China

Agricultural cooperatives in China, known as Farmers' Professional Cooperatives (FPCs), are becoming popular and have been intensely promoted by the Chinese government to improve the economic welfare of small farmers. However, very few studies on Chinese agricultural cooperatives have measured the benefits to farmers who participate in FPCs after controlling for time-invariant attributes of farmers. This paper investigates the treatment effect of participation in a rice-producing cooperative in suburban China using propensity score matching (PSM) and difference-in-differences (DID) method. Estimated results show that no significant difference is observed between participants and non-participants of the cooperative in terms of net income from rice production when controlling for the difference in farmers' rice incomes before the treatment. In addition, there is no significant heterogeneity of the treatment effects between large and small farmers, although the probability of participation in the cooperative is significantly higher when the size of cultivated rice farmland is greater. These results indicate that the benefits of the cooperative appear to be overestimated considering the vigorous policy supports for FPCs from the Chinese government.