[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/hic/wpaper/24.html
   My bibliography  Save this paper

Livestock, Activity Choices and Conflict: Evidence from Burundi

Author

Listed:
  • Tom Bundervoet

    (Free University of Brussels)

Abstract
Standard economic risk theory postulates that in the absence of credit markets, wealthier households will engage in higher-risk, higher profit activities to generate income while poor households will specialize in low-risk activities with low returns. The rationale is that wealthier households can deplete savings when things go wrong whereas poor household cannot. This theoretical argument has been tested for several countries and is generally validated by the data. However, existing studies on the relation between savings and activity choices implicitly assume that savings are certain or risk-free. This study suggests that explicitly allowing household savings or assets to be risky can yield results that differ considerably from the pattern predicted by the standard theoretical model. Using data from the 1998 household priority survey in Burundi, we estimate the relationship between household savings (livestock) and choices of incomegenerating activities (risky vs. less-risky activities). We exploit the fact that surveyed households in certain regions in Burundi were exposed to a relative higher level of risk and uncertainty due to the civil war preceding and during the time of the survey. We find that in general household savings exercise their usual risk-taking effect, though that this effect disappears and even reverses for households in the conflict affected regions. In those regions, wealthier households do not reduce allocation to low-risk low-return activities. We argue that this finding can probably (in part) explain the massive increase in poverty in the provinces exposed to the war during the 1990-1998 period. In this fashion, we argue that a type of �productive social safety net�, as recently discussed in the development literature, could possibly be an effective policy measure to lower the increased asset risk induced by conflict.

Suggested Citation

  • Tom Bundervoet, 2006. "Livestock, Activity Choices and Conflict: Evidence from Burundi," HiCN Working Papers 24, Households in Conflict Network.
    • Handle: RePEc:hic:wpaper:24
    as

    Download full text from publisher

    File URL: https://hicn.org/wp-content/uploads/2012/06/wp24.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    2. Sjaastad, Espen & Bromley, Daniel W., 1997. "Indigenous land rights in sub-Saharan Africa: Appropriation, security and investment demand," World Development, Elsevier, vol. 25(4), pages 549-562, January.
    3. Jayne, T. S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David & Benfica, Rui & Chapoto, Antony & Zulu, Ballard, 2003. "Smallholder income and land distribution in Africa: implications for poverty reduction strategies," Food Policy, Elsevier, vol. 28(3), pages 253-275, June.
    4. Deininger, Klaus & Castagnini, Raffaella, 2006. "Incidence and impact of land conflict in Uganda," Journal of Economic Behavior & Organization, Elsevier, vol. 60(3), pages 321-345, July.
    5. Newell, Andrew & Pandya, Kiran & Symons, James, 1997. "Farm Size and the Intensity of Land Use in Gujarat," Oxford Economic Papers, Oxford University Press, vol. 49(2), pages 307-315, April.
    6. Binswanger, Hans P & McIntire, John, 1987. "Behavioral and Material Determinants of Production Relations in Land-Abundant Tropical Agriculture," Economic Development and Cultural Change, University of Chicago Press, vol. 36(1), pages 73-99, October.
    7. Andre, Catherine & Platteau, Jean-Philippe, 1998. "Land relations under unbearable stress: Rwanda caught in the Malthusian trap," Journal of Economic Behavior & Organization, Elsevier, vol. 34(1), pages 1-47, January.
    8. Migot-Adholla, Shem, et al, 1991. "Indigenous Land Rights Systems in Sub-Saharan Africa: A Constraint on Productivity?," The World Bank Economic Review, World Bank, vol. 5(1), pages 155-175, January.
    9. Jean‐Philippe Platteau, 1996. "The Evolutionary Theory of Land Rights as Applied to Sub‐Saharan Africa: A Critical Assessment," Development and Change, International Institute of Social Studies, vol. 27(1), pages 29-86, January.
    10. Singh, Inderjit & Squire, Lyn & Strauss, John, 1986. "A Survey of Agricultural Household Models: Recent Findings and Policy Implications," The World Bank Economic Review, World Bank, vol. 1(1), pages 149-179, September.
    11. Tilman Brück, 2004. "The Welfare Effects of Farm Household Activity Choices in Post-War Mozambique," Discussion Papers of DIW Berlin 413, DIW Berlin, German Institute for Economic Research.
    12. Lastarria-Cornhiel, Susana, 1997. "Impact of privatization on gender and property rights in Africa," World Development, Elsevier, vol. 25(8), pages 1317-1333, August.
    13. Pak Hung Mo, 2003. "Land Distribution Inequality And Economic Growth: Transmission Channels And Effects," Pacific Economic Review, Wiley Blackwell, vol. 8(2), pages 171-181, June.
    14. Gershon Feder & Tongroj Onchan, 1987. "Land Ownership Security and Farm Investment in Thailand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 311-320.
    15. Feder, Gershon & Noronha, Raymond, 1987. "Land Rights Systems and Agricultural Development in Sub-Saharan Afric a," The World Bank Research Observer, World Bank, vol. 2(2), pages 143-169, July.
    16. Osama J. A. R. Abu Shair, 1997. "Privatization and Development," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-25374-6, October.
    17. Bruce, John W., 1998. "Review Of Tenure Terminology," Tenure Briefs 12814, University of Wisconsin-Madison, Land Tenure Center.
    18. Strasberg, Paul J. & Kloeck-Jenson, Scott, 2002. "Challenging Conventional Wisdom: Smallholder Perceptions And Experience Of Land Access And Tenure Security In The Cotton Belt Of Northern Mozambique," Working Papers 12794, University of Wisconsin-Madison, Land Tenure Center.
    19. Tschirley, David L. & Weber, Michael T., 1994. "Food security strategies under extremely adverse conditions: The determinants of household income and consumption in rural Mozambique," World Development, Elsevier, vol. 22(2), pages 159-173, February.
    20. Frank Place & Peter Hazell, 1993. "Productivity Effects of Indigenous Land Tenure Systems in Sub-Saharan Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 75(1), pages 10-19.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Verpoorten, Marijke, 2011. "Measure for measure: how well do we measure micro-level conflict intensity?," IOB Working Papers 2011.08, Universiteit Antwerpen, Institute of Development Policy (IOB).
    2. Marc Rockmore, 2012. "Living Within Conflicts: Risk of Violence and Livelihood Portfolios," HiCN Working Papers 121, Households in Conflict Network.
    3. Singh, Prakarsh, 2011. "Impact of terrorism on investment decisions of farmers: evidence from the Punjab insurgency," MPRA Paper 33328, University Library of Munich, Germany.
    4. Patricia Justino & Ivan Cardona & Rebecca Mitchell & Catherine M�ller, 2012. "Quantifying the Impact of Women�s Participation in Post-Conflict Economic Recovery," HiCN Working Papers 131, Households in Conflict Network.
    5. Patricia Justino, 2009. "The Impact of Armed Civil Conflict on Household Welfare and Policy Responses," HiCN Working Papers 61, Households in Conflict Network.
    6. Sam Desiere & Sanctus Niragira & Marijke D'Haese, 2015. "Cow or Goat? Population pressure and livestock keeping in Burundi," Agrekon, Taylor & Francis Journals, vol. 54(3), pages 23-42, September.
    7. Desiere, Sam & Niragira, Sanctus & D'Haese, Marijke, 2016. "Cow or Goat? Population pressure and livestock keeping in Burundi," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 54(3), January.
    8. Ciarli, Tommaso & Parto, Saeed & Savona, Maria, 2010. "Conflict and Entrepreneurial Activity in Afghanistan: Findings from the National Risk Vulnerability Assessment Data," WIDER Working Paper Series 008, World Institute for Development Economic Research (UNU-WIDER).
    9. Tegebu, Fredu Nega & Mathijs, Erik & Deckers, Jozef A. & Tollens, Eric, 2009. "Rural livestock asset portfolio in northern Ethiopia: A microeconomic analysis of choice and accumulation," 2009 Conference, August 16-22, 2009, Beijing, China 50039, International Association of Agricultural Economists.
    10. Patricia Justino, 2012. "Nutrition, Governance and Violence: A Framework for the Analysis of Resilience and Vulnerability to Food Insecurity in Contexts of Violent Conflict," HiCN Working Papers 132, Households in Conflict Network.
    11. Verteramo Chiu, Leslie J. & Turvey, Calum G., 2015. "Perception and Action in a Conflict Zone: a Study of Rural Economy and Rural Life amidst Narcos in Northeastern Mexico," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205447, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brück, Tilman & Schindler, Kati, 2009. "Smallholder Land Access in Post-War Northern Mozambique," World Development, Elsevier, vol. 37(8), pages 1379-1389, August.
    2. Place, Frank, 2009. "Land Tenure and Agricultural Productivity in Africa: A Comparative Analysis of the Economics Literature and Recent Policy Strategies and Reforms," World Development, Elsevier, vol. 37(8), pages 1326-1336, August.
    3. Gwendoline Promsopha, 2018. "Risk†Coping, Land Tenure And Land Markets: An Overview Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 176-193, February.
    4. Fenske, James, 2011. "Land tenure and investment incentives: Evidence from West Africa," Journal of Development Economics, Elsevier, vol. 95(2), pages 137-156, July.
    5. Thomas Vendryes, 2014. "Peasants Against Private Property Rights: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 971-995, December.
    6. Tilman Br�ck, 2003. "Investment in Land, Tenure Security and Area Farmed in Northern Mozambique," HiCN Working Papers 01, Households in Conflict Network.
    7. Jayne, T. S. & Yamano, Takashi & Weber, Michael T. & Tschirley, David & Benfica, Rui & Chapoto, Antony & Zulu, Ballard, 2003. "Smallholder income and land distribution in Africa: implications for poverty reduction strategies," Food Policy, Elsevier, vol. 28(3), pages 253-275, June.
    8. Séogo, Windinkonté & Zahonogo, Pam, 2023. "Do land property rights matter for stimulating agricultural productivity? Empirical evidence from Burkina Faso," Land Use Policy, Elsevier, vol. 125(C).
    9. Quisumbing, Agnes R. & Payongayong, Ellen & Aidoo, J. B. & Otsuka, Keijiro, 1999. "Women's land rights in the transition to individualized ownership," FCND discussion papers 58, International Food Policy Research Institute (IFPRI).
    10. Francis Mwesigye & Tomoya Matsumoto, 2013. "Rural-rural Migration and Land Conflicts: Implications on Agricultural Productivity in Uganda," GRIPS Discussion Papers 13-17, National Graduate Institute for Policy Studies.
    11. Deininger, Klaus & Feder, Gershon, 2001. "Land institutions and land markets," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 6, pages 288-331, Elsevier.
    12. Mwesigye, Francis & Matsumoto, Tomoya, 2016. "The Effect of Population Pressure and Internal Migration on Land Conflicts: Implications for Agricultural Productivity in Uganda," World Development, Elsevier, vol. 79(C), pages 25-39.
    13. Hagos, Hosaena Ghebru, 2012. "Tenure (in)security and agricultural investment of smallholder farmers in Mozambique:," MSSP working papers 5, International Food Policy Research Institute (IFPRI).
    14. Daniel Ayalew Ali & Stefan Dercon & Madhur Gautam, 2011. "Property rights in a very poor country: tenure insecurity and investment in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 42(1), pages 75-86, January.
    15. Bouquet, Emmanuelle, 2009. "State-Led Land Reform and Local Institutional Change: Land Titles, Land Markets and Tenure Security in Mexican Communities," World Development, Elsevier, vol. 37(8), pages 1390-1399, August.
    16. Ali, Daniel Ayalew & Deininger, Klaus & Goldstein, Markus, 2014. "Environmental and gender impacts of land tenure regularization in Africa: Pilot evidence from Rwanda," Journal of Development Economics, Elsevier, vol. 110(C), pages 262-275.
    17. Smith, Robert E., 2004. "Land Tenure, Fixed Investment, and Farm Productivity: Evidence from Zambia's Southern Province," World Development, Elsevier, vol. 32(10), pages 1641-1661, October.
    18. Klaus Deininger & Daniel Ayalew Ali & Takashi Yamano, 2008. "Legal Knowledge and Economic Development: The Case of Land Rights in Uganda," Land Economics, University of Wisconsin Press, vol. 84(4), pages 593-619.
    19. Ghebru, Hosaena, 2015. "Is There a Merit to the Continuum Tenure Approach? A Case of Demand for Land Rights Formulation in Rural Mozambique," 2015 Conference, August 9-14, 2015, Milan, Italy 211683, International Association of Agricultural Economists.
    20. Holden, Stein T. & Otsuka, Keijiro, 2014. "The roles of land tenure reforms and land markets in the context of population growth and land use intensification in Africa," Food Policy, Elsevier, vol. 48(C), pages 88-97.

    More about this item

    Keywords

    Assets; risk; conflict; activity choices; Africa; Burundi;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hic:wpaper:24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tilman Brück or the person in charge or the person in charge or the person in charge (email available below). General contact details of provider: https://hicn.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.