Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia

This paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments...

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Bibliographic Details
Main Authors:	Nose, Manabu, Yamauchi, Futoshi
Format:	Journal Article
Language:	en_US
Published:	Taylor and Francis 2016
Subjects:	Food price crisis Farm investment Supply response terms-of-trade cash crops
Online Access:	http://hdl.handle.net/10986/24609

id	okr-10986-24609
recordtype	oai_dc
spelling	okr-10986-246092021-05-25T10:54:39Z Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia Nose, Manabu Yamauchi, Futoshi Food price crisis Farm investment Supply response terms-of-trade cash crops This paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments. 2016-07-05T19:53:55Z 2016-07-05T19:53:55Z 2016-05-12 Journal Article The Journal of Development Studies 0022-0388 http://hdl.handle.net/10986/24609 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research Indonesia
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	Food price crisis Farm investment Supply response terms-of-trade cash crops
spellingShingle	Food price crisis Farm investment Supply response terms-of-trade cash crops Nose, Manabu Yamauchi, Futoshi Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia
geographic_facet	Indonesia
description	This paper estimates farmers’ investment response to food price spikes using household panel data collected before and after the 2007/08 food price crisis in Indonesia. We found that an increase in farmers’ terms-of-trade allowed relatively large crop-producing farmers to increase their investments at both extensive and intensive margins. Food price spikes had a significant income effect among farmers whose production surplus is large for market sales. During the food price crisis, large farmers particularly increased machine investments, which saved some labour inputs, pointing to the importance of complementarities between land and machine investments.
format	Journal Article
author	Nose, Manabu Yamauchi, Futoshi
author_facet	Nose, Manabu Yamauchi, Futoshi
author_sort	Nose, Manabu
title	Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia
title_short	Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia
title_full	Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia
title_fullStr	Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia
title_full_unstemmed	Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia
title_sort	long-term impacts of global food crisis on production decisions : evidence from farm investments in indonesia
publisher	Taylor and Francis
publishDate	2016
url	http://hdl.handle.net/10986/24609
_version_	1764457178025951232

Long-term Impacts of Global Food Crisis on Production Decisions : Evidence from Farm Investments in Indonesia

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