The effect of shocks on household consumption in rural Nigeria

This paper examines the impact of both exogenous idiosyncratic and covariate shock events on the consumption of farm households in rural Nigeria by using an ordinary least square method. The result of the overall sample shows that whilst idiosyncratic and climatic shock have no significant effect on household consumption, price shocks are having a significant negative impact on household consumer. By disaggregating the sample into poor and non-poor households the result suggests that that the non-poor households are able to adequately insure against the effect of idiosyncratic shocks as well as the climatic shock on their consumption while the poorer ones had not been able to insure against the effect of shocks related to death, livestock loss, climate change and price changes on their consumption. This suggests that the farm households should be provided with an adequate and effective social protection measures that would mitigate the effect of shocks on their welfare

Determinants of food security among households in Nigeria

Background and Objective: Although the government has demonstrated a commitment to confronting the issue of food security in Nigeria with different policies, the result indicates that the target is far from being realized, as the country is still listed among the hungry and food-insecure nations. More than 50% of the household income goes to meeting food requirements. This paper was attempted to explore the factors affecting food security status among urban and rural households in Nigeria. Materials and Methods: Using the econometric method, the study used the food consumption score as a proxy for food security to measure the impact of some determinants of household food security on rural and urban households in Nigeria. Results: The result of the ordinary least square (OLS) analysis and the multinomial log it models revealed that education, food and non-food expenditures and the number of adults have a significant positive influence on food security. However, age, gender and household size affect food security slightly and negatively. Land size was expected to be positively affect food security but it was insignificant, which can be explained by the land acquisition and ownership system of the country. Conclusion: The findings of this study suggest that the government needs to intensify efforts for programs that will promote the education of household headsʼ by improving the access of poor households to formal education, increasing income, increasing social capital and reviewing land ownership policies to allow for the transfer of land to rural house holds. These efforts will create opportunities for improving food security in the country

Productivity for sustainable growth in Malaysian oil palm production: a system dynamics modeling approach

Productivity is posited as the key to shape a more sustainable oil palm industry. This study, through a systemic perspective, explores the main drivers of productivity growth and its impacts on its associated factors using a system dynamics model. Of all four simulations, research and development (R&D) intervention is demonstrated to enhance oil palm production albeit at the cost of seemingly unstoppable land loss. This, in turn, leads to lower carbon emissions. Automation and mechanization are found effective in reducing farm operating cost. These findings suggest that R&D is key, and related policy options are discussed for steering the sustainability and growth of oil palm production in Malaysia

Consistency tests of comparative advantage measures: an empirical evidence from the Malaysian and selected Asian shrimp products

The aim of this study is to examine the consistency between the Balassa index and Vollrath indices in measuring comparative advantages of the Malaysian shrimp products with other major shrimp exporting nations as comparator. The study uses Balassa index and Vollrath indices to measure comparative advantages of the Malaysian shrimp products. The indices then are compared by consistency tests. Malaysia was generally not competitive in shrimp trade; however, revealed comparative advantage (RCA) and relative export advantage (RXA) indices show some extent of competitiveness on non-frozen shrimp product. Thailand had a remarkable competitiveness in shrimp trade as compared to other major exporting countries. Although we found that double-counting problem in the Balassa index is insignificant in measuring export performance of the Malaysian shrimp sector, import could be an important variable in accessing its trade competitiveness. Marginal import of a sector may lead to relative trade advantage (RTA) index consistent with RCA and RXA indices. Considering exports and imports of a particular commodity in measuring competitiveness is more consistent with the real world phenomenon of two-way trade. Selecting measurement of comparative advantage should rigorously base on trade behaviour of a sector as well as theoretical constructs. The competitiveness of the Malaysian shrimp products remains unclear due to the lack of contemporary analyses backed by formal testing procedures. The results and policy implications of this study provide stakeholders insights into comparative advantage as well as trade position of the products. Better measurement for revealed comparative advantage, particularly for shrimp products, is discussed in this paper

A cointegration analysis of crude palm oil price in Thailand

Reliazing the pass-through effects of global commodity prices on domestic prices, this study develops a vector error correction model (VECM) to test for the determinants and direction of causality between global prices and crude palm oil (CPO) price in Thailand. Malaysian crude palm oil, world soybean oil and world crude oil prices were investigated as factors affecting the Thai CPO price. Using the Johansen cointegration test, the result unveils a presence of long-run relationship among the determinants. This long-run relationship, proposes that CPO price flows in Thailand are positively influenced by the Malaysian CPO price and the error correction term suggests that approximately 35 percent of total disequilibrium in Thai CPO price was corrected in the following month. Moreover, the findings show Granger causality from each of the Malaysian CPO price and the world soybean oil price for the Thai CPO price. Information flow regarding the price movements of the Malaysian CPO and soybean oil affect the Thai CPO price and vice-versa. Whereas, the evidence for a causal relationship that runs from the world crude oil price to the Thai CPO price is found, but not in reverse

Asymmetric adjustments in the Thai palm oil market

Drastic movements of global commodity prices and their impact on the Thai palm oil market is a major concern due to Thailand being the third largest producer of crude palm oil (CPO). Although the country is not a net importer, global price changes of the commodity can transmit to domestic markets for palm oil products. This paper analyzed the transmission of Malaysian CPO and world crude oil price changes to the changes in the Thai CPO price using an asymmetric error correction model. The price data used in this paper covers the period from January 1996 to September 2015. The findings showed that the speed of adjustments towards long-run equilibrium were asymmetric and the effects of the world prices on Thai CPO price were significant in both positive and negative deviations. This result calls for policy measures to mitigate the impact of global price movements because CPO is an essential intermediate input in various products and any changes in the Thai CPO price definitely affects the welfare of domestic consumers

The effects of behavior and attitudes on drop-off recycling activities

To reduce the amount of waste entering landfills, policymakers and governments have implemented various recycling and waste reduction programs such as source reduction, curbside recycling and drop-off recycling programs. The success of a recycling program largely depends on household participation and sorting activities. A better understanding of recycling behavior will help us aid the design and improve the effectiveness of recycling policies. This paper studies the profile of people who utilize drop-off recycling sites and analyzes the factors influencing their site usage. The results show that the usage of drop-off recycling sites is influenced by demographic factors such as age, education, income and household size. Attitudinal factors are also found to affect site usage. Recyclers tend to use the drop-off sites more when they feel that recycling is a convenient activity and when they are more familiar with the sites

Competitive Advantage between Malaysia and World Halal Producers of Ruminant Meat

The gap created by the mismatch between high domestic demand and low domestic supply of halal meat has been filled by ruminant meat sourced from the international markets. However, the exporting countries are still limited due to stringent halal requirements. This study examined the competitive advantage of trading partners in the exportation of ruminant meat. Moreover, this study also identified factors underlying the import of ruminant meat and determined the comparative advantage of local production of ruminant meat. This study employed Vollrath indices through the utilization of relative export advantage, relative import advantage, and overall relative trade advantage. Analysis was conducted on 26 countries and 15 product codes of ruminant meat. The findings disclosed that the possession of competitive advantage did not exclusively belong to traditional sources but to other countries, particularly Pakistan and the Netherlands

Road transport system in Southeast Asia; problems and economic solutions

In Southeast Asian countries (SEA), road transport accounts for the main energy consumption and CO2 emission. Air pollution is a major concern in densely populated cities such as Bangkok, Manila, and Kuala Lumpur. The main objective of this paper is to give insights on trends of transport development, car ownership, and CO2 emissions in Southeast Asia. This study also attempts to review the successful transportation policies around the globe and to introduce the possible instruments that can help reduce air pollution in Southeast Asian countries. Economic instruments to estimate the benefits of a cleaner environment due to new policies are introduced as well. The results of this research could help policy makers consider approaches that could internalize external costs of transportation and maximize the societal welfare