Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Location and economic resilience in rubber farming communities in southwest China

Location and economic resilience in rubber farming communities in southwest China In rural areas, geographic location is key to market access and labor mobility of farm households. This paper aims to investigate the opportunities and constraints of smallholder rubber farmers in southwest China to adjust to the changes in economic and institutional conditions, namely the declining rubber prices, emerging land rental markets and growing off-farm job opportunities.Design/methodology/approachThe empirical basis is a dataset of some 600 rubber farmers in Xishuangbanna Dai Autonomous Prefecture, Yunnan Province, collected in March 2015. The study uses instrumental variable and recursive bivariate probit models to account for possible endogeneity and selection bias.FindingsWith rubber prices in decline, the elevation of rubber plantations is an essential factor for the costs of access to the local factor markets and influences farm households' possibilities to adopt coping strategies. Notably, we find a U-shape type of relationship between the location and renting-out land due to the decline in rubber profitability. Rubber producers in low elevations are better bestowed with access to local markets. Households in high elevations, where rubber planting came in later, can shift to new crops like tea. However, the economic resilience of farmers in middle elevations is low due to their higher adjustment costs.Originality/valueThe paper provides a constructive basis for designing more location-specific development policies and can help avoid the past often ineffective blanket measures. Its implications have significant relevance for areas with similar conditions, for example, the remote, ethnic minority–dominated and mountainous rural areas in China. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png China Agricultural Economic Review Emerald Publishing

Location and economic resilience in rubber farming communities in southwest China

Loading next page...
 
/lp/emerald-publishing/location-and-economic-resilience-in-rubber-farming-communities-in-8rNKPrt3Z0
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1756-137X
DOI
10.1108/caer-06-2020-0153
Publisher site
See Article on Publisher Site

Abstract

In rural areas, geographic location is key to market access and labor mobility of farm households. This paper aims to investigate the opportunities and constraints of smallholder rubber farmers in southwest China to adjust to the changes in economic and institutional conditions, namely the declining rubber prices, emerging land rental markets and growing off-farm job opportunities.Design/methodology/approachThe empirical basis is a dataset of some 600 rubber farmers in Xishuangbanna Dai Autonomous Prefecture, Yunnan Province, collected in March 2015. The study uses instrumental variable and recursive bivariate probit models to account for possible endogeneity and selection bias.FindingsWith rubber prices in decline, the elevation of rubber plantations is an essential factor for the costs of access to the local factor markets and influences farm households' possibilities to adopt coping strategies. Notably, we find a U-shape type of relationship between the location and renting-out land due to the decline in rubber profitability. Rubber producers in low elevations are better bestowed with access to local markets. Households in high elevations, where rubber planting came in later, can shift to new crops like tea. However, the economic resilience of farmers in middle elevations is low due to their higher adjustment costs.Originality/valueThe paper provides a constructive basis for designing more location-specific development policies and can help avoid the past often ineffective blanket measures. Its implications have significant relevance for areas with similar conditions, for example, the remote, ethnic minority–dominated and mountainous rural areas in China.

Journal

China Agricultural Economic ReviewEmerald Publishing

Published: Jun 1, 2021

Keywords: Rubber; Elevation; Land rental; Off-farm employment; Southwest China; J61; Q12; Q15

References