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Typhoon and Agricultural Production Portfolio -Empirical Evidence for a Developing Economy

Author

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  • Tran, Thi Xuyen
Abstract
In this paper, we investigate whether and how households adjust their agricultural practices such as cultivation and livestock to adapt to a severe typhoon. We, therefore, make use of a natural experiment coming from the strong typhoon Ketsana in 2009. We apply the difference-in-differences approach using micro-data on the household level and spatial data of this severe typhoon. Our empirical findings suggest that households alter their agricultural activities in response to a strong typhoon. While they decrease the area planted for staple crops, i.e., rice and cassava, they tend to purchase more livestock, i.e., pigs, in the short term and in the medium term. Our paper not only indicates the adjustment to the croplivestock system as a livelihood adaptation strategy to a severe typhoon, but it also suggests the shifting trend from crop planting to livestock raising, which emphasizes the contraction of crop farming in the aftermath of this type of event.

Suggested Citation

  • Tran, Thi Xuyen, 2021. "Typhoon and Agricultural Production Portfolio -Empirical Evidence for a Developing Economy," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242411, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc21:242411
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    File URL: https://www.econstor.eu/bitstream/10419/242411/1/vfs-2021-pid-50140.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Typhoon; Agricultural production; Crops; Livestock; Vietnam;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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