Advertisement

Food Security

, Volume 11, Issue 3, pp 703–718 | Cite as

Nonfarm employment and household food security: evidence from panel data for rural Cambodia

  • Truong Lam DoEmail author
  • Trung Thanh Nguyen
  • Ulrike Grote
Original Paper

Abstract

Nonfarm employment has been increasingly important in improving food security of rural households in the developing world. In this paper, we (1) determine the factors explaining the participation in nonfarm employment and nonfarm income of rural households by employing a two-part random effects econometric model, and (2) examine the effects of nonfarm employment on rural household food security indicators by combining the propensity score matching with the difference-in-differences approach. We used a panel dataset of 561 households in 30 villages of Stung Treng province in Cambodia collected in 2013 and 2014. Our sample was divided into two groups, households with nonfarm employment, and households without nonfarm employment. Our findings show that (1) nonfarm employment contributed about 32% to total annual household income for the whole sample and 57% for the households with nonfarm employment; (2) participation in nonfarm employment and nonfarm income were significantly influenced by the education level of household heads, numbers of motorbikes and mobile phones, conditions of roads to the villages, farmland size, number of income shocks, and the distance from home to the nearest market; (3) there was no significant difference in terms of food availability between households with and households without nonfarm employment but the former have improved food access, utilization, and stability. We suggest that promoting rural education, improving road conditions, and empowering rural households to cope with income shocks would contribute to developing nonfarm employment and consequently improve food security of rural households.

Keywords

Nonfarm employment Impact assessment Propensity score matching Difference-in-differences Two-part random effects model Cambodia 

Notes

Acknowledgements

We thank the farmers in Stung Treng for their support and cooperation. Support from the Cambodia Development Resource Institute (CDRI) and our colleagues at the Leibniz University Hannover for data collection is highly appreciated. This paper is based on two discussion papers highlighting some first descriptive results of the survey in Cambodia (Bühler et al. 2015; Sharma et al. 2016). We would also like to thank the editor and the reviewers for their constructive comments, which have improved the article.

Compliance with ethical standards

Conflict of interest

We hereby declare that there is no conflict of interests regarding our submitted manuscript entitled “Nonfarm Employment and Household Food Security: Evidence from Panel Data for Rural Cambodia” for publication in Food Security.

Supplementary material

12571_2019_929_MOESM1_ESM.docx (71 kb)
ESM 1 (DOCX 71 kb)

References

  1. Abdulai, A., & CroleRees, A. (2001). Determinants of income diversification amongst rural households in Southern Mali. Food Policy, 26, 437–452.CrossRefGoogle Scholar
  2. Akaakohol, M. A., & Aye, G. C. (2014). Diversification and farm household welfare in Makurdi, Benue State, Nigeria. Development Studies Research, 1(1), 168–175.CrossRefGoogle Scholar
  3. Arouri, M., Ben Youssef, A., & Nguyen, C. (2017). Does urbanization reduce rural poverty? Evidence from Vietnam. Economic Modelling, 60, 253–270.CrossRefGoogle Scholar
  4. Asian Development Bank (2017). Cambodia: Economy. https://www.adb.org/countries/cambodia/poverty. Accessed 20 September 2017.
  5. Babatunde, R. O., & Qaim, M. (2010). Impact of off-farm income on food security and nutrition in Nigeria. Food Policy, 35, 303–311.CrossRefGoogle Scholar
  6. Baltagi, B. H. (2013). Econometric analysis of panel data (5th ed.). Rome: Wiley.Google Scholar
  7. Barrett, C. B., Reardon, T., & Webb, P. (2001). Nonfarm income diversification and household livelihood strategies in rural Africa: Concepts, dynamics, and policy implications. Food Policy, 26, 315–331.CrossRefGoogle Scholar
  8. Bilinsky, P., & Swindale, A. (2010). Months of adequate household food provisioning (MAHFP) for measurement of household food access: Indicator guide, version 4. Food and nutrition technical assistance project (FANTA). Washington D.C., USA.Google Scholar
  9. Brüssow, K., Faße, A., & Grote, U. (2017). Implications of climate-smart strategy adoption by farm households for food security in Tanzania. Food Security, 9, 1–16.  https://doi.org/10.1007/s12571-017-0694-y.CrossRefGoogle Scholar
  10. Bühler, D., Grote, U., Hartje, R., Ker, B., Lam, D.T., Nguyen, L.D., Nguyen, T.T. & Tong, K. (2015): Rural livelihood strategies in Cambodia: Evidence from a household survey in Stung Treng. ZEF working paper series no.137, Center for Development Research (ZEF), Bonn.Google Scholar
  11. Caliendo, M., & Kopeinig, S. (2008). Some practical guidance for the implementation of propensity score matching. Journal of Economic Surveys, 22, 31–72.CrossRefGoogle Scholar
  12. Cerulli, G. (2015). Econometric evaluation of socio-economic programs. Theory and applications (pp. 189–202). Heidelberg: 495 Springer.Google Scholar
  13. Chang, H. H., & Mishra, A. (2008). Impact of off-farm labor supply on food expenditures of the farm household. Food Policy, 33(6), 657–664.CrossRefGoogle Scholar
  14. Chilonda, P., & Otte, J. (2006). Indicators to monitor trends in livestock production at national, regional and international levels. Livestock Research for Rural Development, 18, Article #117. http://www.lrrd.org/lrrd18/8/chil18117.htm. Accessed 20 September 2016.
  15. Claro, R. M., Levy, R. B., Bandoni, D. H., & Mondini, L. (2010). Per capita versus adult-equivalent estimates of calorie availability in household budget surveys. Cadernos de Saúde Pública, 26(11), 2188–2195.CrossRefGoogle Scholar
  16. Coates, J. (2013). Build it back better: Deconstructing food security for improved measurement and action. Global Food Security, 2, 188–194.CrossRefGoogle Scholar
  17. Coates, J., Swindale, A., & Bilinsky, P. (2007). household food insecurity access scale (HFIAS) for measurement of household food access: Indicator guide version 3. Food and nutrition technical assistance project academy for educational development. Washington DC.Google Scholar
  18. de Janvry, A., & Sadoulet, E. (2001). Income strategies among rural households in Mexico: The role of off-farm activities. World Development, 29(3), 467–480.CrossRefGoogle Scholar
  19. de Janvry, A., Sadoulet, E., & Zhu, N. (2005). The role of non-farm incomes in reducing rural poverty and inequality in China. UC Berkeley Department of Agricultural and Resource Economics, UCB. CUDARE Working Paper No. 1001. http://escholarship.org/uc/item/7ts2z766. Accessed 02 June 2017.
  20. Démurger, S., Fournier, M., & Yang, W. (2010). Rural households’ decisions towards income diversification: Evidence from a township in northern China. China Economic Review, 21, 32–44.CrossRefGoogle Scholar
  21. Di Falco, S., Veronesi, M., & Yesuf, M. (2011). Does adaptation to climate change provide food security? A micro-perspective from Ethiopia. American Journal of Agricultural Economics, 93(3), 829–846.CrossRefGoogle Scholar
  22. Dibba, L., Zeller, & Diagne, A. (2017). The impact of new Rice for Africa (NERICA) adoption on household food security and health in the Gambia. Food Security, 9, 929–944.CrossRefGoogle Scholar
  23. Do, T. L., Nguyen, T. T., & Grote, U. (2019). Livestock production, rural welfare, and perceived shocks: Evidence from panel data for Vietnam. Journal of Development Studies, 55(1), 99–119.CrossRefGoogle Scholar
  24. Duan, N., Manning, W. G., Morris, C. N., & Newhouse, J. P. (1983). A comparison of alternative models for the demand for medical care. Journal of Business & Economic Statistics, 1, 115–126.Google Scholar
  25. Ebers, A., Nguyen, T. T., & Grote, U. (2017). Production efficiency of Rice farms in Thailand and Cambodia: A comparative analysis of Ubon Ratchathani and Stung Treng provinces. Paddy and Water Environment, 15, 79–92.CrossRefGoogle Scholar
  26. Ersado, L. (2006). Income diversification in Zimbabwe: Welfare implications from urban and rural areas. Washington DC: World Bank Publications.CrossRefGoogle Scholar
  27. Fabusoro, E., Omotayo, A. M., Apantaku, S. O., & Okuneye, P. A. (2010). Forms and determinants of rural livelihoods diversification in Ogun state, Nigeria. Journal of Sustainable Agriculture, 34, 417–438.CrossRefGoogle Scholar
  28. FAO (2013). Sourcebook on climate-smart agriculture, forestry, and fisheries. Rome.Google Scholar
  29. FAO, IFAD, & WEP. (2014). The state of food insecurity in the world (p. 2014). Rome: Strengthening the Enabling Environment for Food Security and Nutrition. Food and Agriculture Organization of the United Nations, FAO.Google Scholar
  30. Goodwin, B., & Mishra, A. (2004). Farming efficiency and the determinants of multiple job holding by farm operators. American Journal of Agricultural Economics, 86(3), 722–729.CrossRefGoogle Scholar
  31. Hsiao, C. (2007). Panel data analysis-advantages and challenges. TEST, 16, 1–22.CrossRefGoogle Scholar
  32. Huffman, W. E. (1991). Agricultural household models: Survey and critique. In M. C. Hallberg, J. L. Findeis, & D. A. Lass (Eds.), Multiple job holding among farm families (pp. 79–111). Ames: Iowa State Univ. Press.Google Scholar
  33. Lanjouw, P., & Shariff, A. (2004). Rural non-farm employment in India: Access, incomes and poverty impact. Economic and Political Weekly, 39, 4429–4446.Google Scholar
  34. Lema, A. A., Munishi, L. K., & Ndakidemi, P. A. (2014). Assessing vulnerability of food availability to climate change in Hai District, Kilimanjaro region, Tanzania. American Journal of Climate Change, 3, 261–271.CrossRefGoogle Scholar
  35. Leroy, J. L., Ruel, M., Frongillo, E. A., Harris, J., & Ballard, T. J. (2015). Measuring the food access dimension of food security: A critical review and mapping of indicators. Food and Nutrition Bulletin, 36, 167–195.CrossRefGoogle Scholar
  36. Manning, W. G., Duan, N., & Rogers, W. H. (1987). Monte Carlo evidence on the choice between sample selection and two-part models. Journal of Econometrics, 35, 59–82.CrossRefGoogle Scholar
  37. Maxwell, D., & Caldwell, R. (2008). The coping strategies index: Field methods manual 2nd edition. https://www.wfp.org/content/coping-strategies-index-field-methods-manual-2nd-edition. Accessed 09 February 2017.Google Scholar
  38. Maxwell, D., Coates, J., & Vaitla, B. (2013). How do different indicators of household food security compare? Empirical evidence from Tigray. Feinstein international center. Medford: Tufts University.Google Scholar
  39. Mekonnen, D. A., & Gerber, N. (2017). Aspirations and food security in rural Ethiopia. Food Security, 9, 371–385.CrossRefGoogle Scholar
  40. Mishra, A. K., & Sandretto, C. L. (2002). Stability of farm income and the role of nonfarm income in U.S. agriculture. Review of Agricultural Economics, 24, 208–221.CrossRefGoogle Scholar
  41. Mishra, A. K., Mottaleb, K. A., & Mohanty, S. (2015). Impact of off-farm income on food expenditures in rural Bangladesh: An unconditional quantile regression approach. Agricultural Economics, 46(2), 139–148.CrossRefGoogle Scholar
  42. Nguyen, T. T., Do, T. L., Bühler, D., Hartje, R., & Grote, U. (2015). Rural livelihoods and environmental resource dependence in Cambodia. Ecological Economics, 120, 282–295.CrossRefGoogle Scholar
  43. Nguyen, T. T., Nguyen, L. D., Lippe, R. S., & Grote, U. (2017). Determinants of farmers’ land use decision-making: Comparative evidence from Thailand and Vietnam. World Development, 89, 199–213.CrossRefGoogle Scholar
  44. Nguyen, T. T., Do, T. L., & Grote, U. (2018a). Natural resource extraction and household welfare in rural Laos. Land Degradation and Development, 29, 3029–3038.CrossRefGoogle Scholar
  45. Nguyen, T. T., Do, T. L., Parvathi, P., Wossink, A., & Grote, U. (2018b). Farm production efficiency and natural Forest extraction: Evidence from Cambodia. Land Use Policy, 71, 480–493.CrossRefGoogle Scholar
  46. Olugbire, O. O., Falusi, A. O., Adeoti, A. I., Oyekale, A. S., & Adeniran, O. A. (2011). Non-farm income diversification and poverty reduction in Nigeria: A propensity-score matching analysis. Continental Journal of Agricultural Science, 5, 21–28.Google Scholar
  47. Owusu, V., Abdulai, A., & Abdul-Rahman, S. (2011). Non-farm work and food security among farm households in northern Ghana. Food Policy, 36, 108–118.CrossRefGoogle Scholar
  48. Pangaribowo, E.H., Gerber, N., & Torero, M. (2013). Food and nutrition security indicators: a review. ZEF Working Paper No 108. Center for Development Research, University of Bonn.Google Scholar
  49. Rao, E. J. O., & Qaim, M. (2011). Supermarkets, farm household income, and poverty: Insights from Kenya. World Development, 39, 784–796.CrossRefGoogle Scholar
  50. Reardon, T., Stamoulis, K., Balisacan, A., Cruz, M. E., Berdegue, J., & Banks, B. (1998). Rural nonfarm income in developing countries. Special chapter in the state of food and agriculture 1998. Food and agricultural Organization of the United Nations. Rome.Google Scholar
  51. Ruben, R., & Van Den Berg, M. (2001). Nonfarm employment and poverty alleviation of rural farm households in Honduras. World Development, 29, 549–560.CrossRefGoogle Scholar
  52. Senadza, B. (2012). Non-farm income diversification in rural Ghana: Patterns and determinants. African Development Review, 24, 233–244.CrossRefGoogle Scholar
  53. Seng, K. (2015). The effects of nonfarm activities on farm households’ food consumption in rural Cambodia. Development Studies Research, 2, 77–89.CrossRefGoogle Scholar
  54. Sharma, R., Nguyen, T., Grote, U., & Nguyen, T.T (2016). Changing livelihoods in rural Cambodia: Evidence from panel household data in Stung Treng. Center of Development Research (ZEF) Working Paper 149, University of Bonn.Google Scholar
  55. Smith, J. A., & Todd, P. E. (2005). Does matching overcome LaLonde’s critique of nonexperimental estimators? Journal of Econometrics, 125, 305–353.CrossRefGoogle Scholar
  56. Stark, O., & Wang, Y. (2002). Inducing human capital formation: Migration as a substitute for subsidies. Journal of Public Economics, 86, 29–46.CrossRefGoogle Scholar
  57. Swindale, A., & Bilinsky, P. (2006). Household dietary diversity score (HDDS) for measurement of household food access: Indicator guide, version 2. Food and nutrition Technical Assistance Project (FANTA). Washington D.C., USA.Google Scholar
  58. Taylor, J. E., Rozelle, S., & de Brauw, A. (2003). Migration and incomes in source communities: A new economics of migration perspective from China. Economic Development and Cultural Change, 52, 75–101.CrossRefGoogle Scholar
  59. Tsiboe, F., Zereyesus, Y. A., & Osei, E. (2016). Non-farm work, food poverty, and nutrient availability in northern Ghana. Journal of Rural Studies, 47(A), 97–107.CrossRefGoogle Scholar
  60. United Nations. (2005). Designing household survey samples: Practical guidelines. Department of Economic and Social Affairs. New York: United Nations.Google Scholar
  61. United Nations Development Program (2018). Global multidimensional poverty index (MPI) 2018: Cambodia. https://ophi.org.uk/wp-content/uploads/Table-1-National-MPI-2018-1.xlsx. Accessed 17.12.2018.Google Scholar
  62. United States Agency for International Development (2014). Cambodia: Nutrition Profile. https://www.usaid.gov/what-we-do/global-health/nutrition/countries/cambodia-nutrition-profile. Accessed 11 December 2018.
  63. van Leeuwen, E., & Dekkers, J. (2013). Determinants of off-farm income and its local patterns: A spatial microsimulation of Dutch farmers. Journal of Rural Studies, 31, 55–66.CrossRefGoogle Scholar
  64. Vhurumuku, E. (2014). Food security indicators. Workshop on integrating nutrition and food security programming for emergency response and resilience building. Kenya, Nairobi.Google Scholar
  65. Weersink, A., Nicholson, C., & Weerhewa, J. (1998). Multiple job holdings among dairy farm families in New York and Ontario. Agricultural Economics, 18, 127–143.CrossRefGoogle Scholar
  66. Wenban-Smith, H., Faße, A., & Grote, U. (2016). Food security in Tanzania: The challenge of rapid urbanisation. Food Security, 8, 973–984.CrossRefGoogle Scholar
  67. World Bank (2017). World bank national accounts data, and OECD National Accounts data files. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD. Accessed 13 September 2017.
  68. World Food Programme (2008). Food consumption analysis: Calculation and use of the food consumption score in food security analysis. Rome, Italy.Google Scholar
  69. Zereyesus, Y. A., Embaye, W. T., Tsiboe, F., & Amanor-Boadu, V. (2017). Implications of non-farm work to vulnerability to food poverty-recent evidence from northern Ghana. World Development, 91, 113–124.CrossRefGoogle Scholar

Copyright information

© International Society for Plant Pathology and Springer Nature B.V. 2019

Authors and Affiliations

  1. 1.Department of Planning and Investment, Faculty of Economics and Rural DevelopmentVietnam National University of AgricultureHanoiVietnam
  2. 2.Institute for Environmental Economics and World TradeLeibniz University HannoverHannoverGermany

Personalised recommendations