Commercial cash crop production and households'economic welfare:Evidence from the pulse farmers in rural China

Whether promoting cash crop production can increase household welfare has long been the focus of the food policy debate.This study first investigated the determinants of household behavior in commercial pulse farming.It then examined how households'commercial pulse production improves their economic welfare.We used a dataset of 848 households collected from 2018 to 2019 to estimate the determinants of household behavior in commercial pulse farming by the Heckman two-step model.The endogenous treatment regression(ETR)method was employed to examine the impact of commercial pulse farming on household economic welfare.The results showed that factors such as market purchase prices,agricultural technology services,farmers'access to loans,and government subsidies promoted smallholders'commercial pulse farming;production costs and perceptions of climate change risks constrained smallholders'commercial pulse production.Overall,commercial pulse production has increased household farm income but there was a limited impact on household off-farm income.Our findings suggest that policies aiming to increase households'cash crop production and market access could significantly improve the economic welfare of pulse farmers.

The interaction effect of foreign capital inflows and financial development on economic welfare in sub-Saharan Africa

This study examines the interaction effects of foreign capital inflows and financial development on economic welfare in sub-Saharan Africa(SSA).Estimates based on the system-GMM estimator using panel data on 23 SSA countries for 2000 to 2013 establish several results.First,the interaction between foreign capital inflows and financial development positively affects economic welfare in SSA.However,this effect was negative after one year.Second,the partial indirect effects of foreign capital inflows on economic welfare,conditional on the level of financial development,are positive,though they become negative after one year.Third,the total effect of foreign capital inflows on economic welfare is positive.The effect becomes negative after a year,though the predominant source of financial development is domestic credit.The consistency of these results indicates the importance of financial development in transmitting foreign capital to economic welfare enhancement.Developing the SSA’s financial sector to meet specific welfare-enhancing demands may potentially convert a large share of capital inflows into improved economic welfare and eliminate the negative effects.

Changes in the Supply of Public Intermediate Goods,Fixed Wage,and the Relative Price in the Harris-Todaro Model

Since the Harris-Todaro model was proposed in 1970,it has played a crucial role in analyzing various environmental and trade issues in developing countries.This paper analyzes the effects of the amount of public intermediate goods provided by the government,the increase in the fixed wage rate in the urban sector,and the changes in the relative international prices of agricultural and manufacturing goods on labor employment,unemployment,and the economic welfare in the context of a small open economy.It also proposes relevant policies to reduce the unemployment rate while improving national welfare.

Can the integration between urban and rural areas be realized?A new theoretical analytical framework

Urban-rural integration is an advanced form resulting from the future evolution of urban-rural relationships.Nevertheless,little research has explored whether urban and rural areas can move from dual segmentation to integrated development from a theoretical or empirical perspective.Based on the research framework of welfare economics,which offers an appealing paradigm to frame the underlying game between cities and villages,this study clarifies the ideal state of urban-rural integration.It then proposes a series of basic assumptions,and constructs a corresponding objective function and its constraints.Moreover,it assesses the possibility of seeing the transmutation from division to integration between urban and rural areas with continuous socio-economic development.The authors argue that the ideal state of urban-rural integration should be a Pareto-driven optimal allocation of urban-rural resources and outputs,and the maximization of social welfare in the entire region.Based on a systematic demonstration using mathematical models,the study proposes that urban and rural areas can enter this ideal integrated development pattern when certain parameter conditions are met.In general,this study demonstrates the theoretical logic and scientific foundations of urban-rural integration,enriches theoretical studies about urban-rural relationships,and provides basic theoretical support for large developing countries to build a coordinated and orderly urban-rural community with a shared future.