Puneet Vatsa, Hem Basnet and Frank Mixon
The purpose of this paper is to investigate the interlinkages among four major stock markets in Latin America, i.e., those in Argentina, Brazil, Chile, and Mexico, as well as…
Abstract
Purpose
The purpose of this paper is to investigate the interlinkages among four major stock markets in Latin America, i.e., those in Argentina, Brazil, Chile, and Mexico, as well as their associations with the US stock market, which influences financial markets globally.
Design/methodology/approach
Using the newly developed Hamilton filter methodology (Hamilton, 2018), the authors decompose each stock series to extract cyclical components.
Findings
Results indicate that the US S&P 500 is weakly contemporaneously correlated with stock market indices in Brazil, Mexico and Argentina, whereas it also leads the latter by three months. As such, sufficient time is available for policymakers and investors to enhance their forecasts of the latter.
Originality/value
Results indicate that the US S&P 500 is weakly contemporaneously correlated with stock market indices in Brazil, Mexico and Argentina, whereas it also leads the latter by three months. As such, sufficient time is available for policymakers and investors to enhance their forecasts of the latter.
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Puneet Vatsa and Frank G. Mixon
This paper aims to investigate the cyclical associations among energy prices and key macroeconomic variables for the USA.
Abstract
Purpose
This paper aims to investigate the cyclical associations among energy prices and key macroeconomic variables for the USA.
Design/methodology/approach
To this end, the recently developed Hamilton filter (HF) and the oft-used Hodrick–Prescott filter (HPF) are used. The two methods produce starkly different results regarding the relationships between energy prices on the one hand and output and employment on the other.
Findings
While the HF suggests that energy prices are acyclical, the HPF suggests they are procyclical. However, the associations between energy prices and inflation are robust across the two methods, indicating that energy prices are strongly correlated with – and lead – the consumer price index (CPI). Furthermore, unlike the results produced by the HPF, those produced by the HF are robust across seasonally adjusted and unadjusted data.
Research limitations/implications
Given the inherent seasonality in energy prices and the differences in the underlying processes that generate macroeconomic and energy prices, the results obtained from the HPF filter should be interpreted with caution.
Originality/value
To the best of the authors’ knowledge, this is the first study that uses the recently developed HF to examine the associations between the cyclical behaviors of three key macroeconomic variables in the USA – the industrial production index, the CPI, and total nonfarm employment – and the prices of natural gas, crude oil, gasoline, diesel, and heating oil. Second, this study presents a comparison of the results produced by the two filtering techniques. Third, recognizing that energy prices are characterized by seasonality, this study tests the robustness of the results produced by the two filters across seasonally adjusted and unadjusted data.
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Wanglin Ma, Puneet Vatsa, Xiaoshi Zhou and Hongyun Zheng
The purpose of this study is to explore the relationship between farmers' happiness and farm productivity, taking maize production in China as an example.
Abstract
Purpose
The purpose of this study is to explore the relationship between farmers' happiness and farm productivity, taking maize production in China as an example.
Design/methodology/approach
The conditional mixed process model is employed to account for the endogeneity that inevitably arises in regression models studying happiness and estimate the 2015 China Household Finance Survey data.
Findings
The empirical results show that a higher level of farmers' happiness is associated with higher maize productivity. The marginal return in maize productivity changes unevenly with increments in farmers' self-reported happiness on a five-point Likert scale. Farmers' happiness is positively determined by their age, educational level, farm size, machinery ownership, access to agricultural subsidy and car ownership. Machinery ownership and access to credit are two important factors that improve maize productivity.
Research limitations/implications
The finding suggests that promoting the subjective well-being of farmers is conducive to higher productivity and improved national food security. The results have implications for China and other developing countries aiming for sustainable agricultural development.
Originality/value
Firm-level data show that workers' happiness improves productivity. However, it is still unclear whether farmworkers' happiness affects farm productivity. Thus, this study provides the first empirical analysis of the impact of farmworkers' happiness on farm productivity.
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Puneet Vatsa, Hongyun Zheng and Wanglin Ma
We analyzed the effects of different combinations of organic soil amendments (OSAs) and chemical fertilizers on agrifood production, focusing on banana yields in China, the…
Abstract
Purpose
We analyzed the effects of different combinations of organic soil amendments (OSAs) and chemical fertilizers on agrifood production, focusing on banana yields in China, the second-largest producer of bananas globally.
Design/methodology/approach
We computed these combinations by dividing the expenditures on OSAs by those on chemical fertilizers and called them OSA-CF ratios. First, we classified farmers based on quintiles of expenditures on chemical fertilizers. Then, we studied the association between OSA-CF ratios and banana yields for each quintile. We also considered an alternate specification in which farmers were grouped along the OSA-CF ratio continuum. The first group comprised farmers not using OSAs. Their OSA-CF ratio was zero. Farmers applying low, medium, and high OSA-CF ratios constituted groups two, three, and four; the groups were delineated based on the OSA-CF ratio tertiles, and the associations between tertiles of OSA-CF ratios and banana yields for each quintile were analyzed. The data used in this study were collected by surveying 616 households in three major banana-producing provinces (Guangdong, Hainan, and Yunnan) of China. Standard linear regressions and the two-stage predictor substitution method were employed to complete the analysis.
Findings
There were variations in the effects of OSA-CF ratios on banana yields obtained by farmers iifferent quintiles. For the first and second quintiles, low, medium, and high OSA-CF ratios improved banana yields relative to not using OSAs. For farmers in the first quintile using only chemical fertilizers, applying a low OSA-CF ratio was associated with an improvement of 792 kg/mu in banana yields. For their counterparts in the second quintile, the same transition was associated with a gain of 534 kg/mu. For the fifth quintile, comprising farmers spending 320 yuan/mu or more on chemical fertilizers, applying a high OSA-CF ratio instead of using only chemical fertilizers was associated with a 401 kg/mu decline in banana yields. Even so, for this group, no differences were observed between the yields of farmers not applying OSAs and those using low and medium OSA-CF ratios.
Practical implications
Banana farmers in southern China, using only chemical fertilizers, can improve yields by combining them with OSAs if their chemical fertilizer expenditures are less than 66.67 yuan/mu. Those using only chemical fertilizers and spending between 68 yuan/mu and 300 yuan/mu on them can maintain yields by applying OSAs in conjunction with chemical fertilizers. However, yields may decline for farmers using only chemical fertilizers and spending 320 yuan/mu or more on them if they incorporate OSAs such that the OSA-CF ratio reaches 0.78 or higher. Overall, combining OSAs with chemical fertilizers can improve yields while attenuating the adverse effects of chemical fertilizers on the environment. Policymakers should inform farmers of these benefits and accelerate the transition to sustainable agriculture through educational and awareness programs.
Originality/value
Farmers apply OSAs such as organic fertilizers and farmyard manure to adjust and remedy soil nutrition to improve farm productivity. However, little is known about how combining OSAs with chemical fertilizers affects banana yields. This study provided the first attempt to explore the associations between OSA-CF ratios and banana yields using cross-sectional data on farming households.
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Eva Panetti, Daniele Leone, Andrea Caporuscio and Maria Cristina Pietronudo
This paper aims to explore the evolutionary dynamics of innovation ecosystems in the food industry by adopting both open innovation and convergence approaches to derive practical…
Abstract
Purpose
This paper aims to explore the evolutionary dynamics of innovation ecosystems in the food industry by adopting both open innovation and convergence approaches to derive practical policy implications to develop impactful innovation ecosystems to promote food production sustainably.
Design/methodology/approach
Starting from the cutting-edge case of Foodvalley in the Netherlands, the study adopts a backcasting approach to reach a future vision of food ecosystems from a sustainable food production perspective. The authors set the backcasting analysis in four steps: (1) description of the present and trends analysis, (2) selection of trustworthy criteria and goals, (3) development of future images and (4) analysis of how to reach the images.
Findings
The trends analysis has identified three existing innovation fields – protein shift, circular agrifood and food and health – and two strategic directions – convergence and localness decrease. The study reports how a long-term commitment may lead the valley toward a best future scenario.
Practical implications
The study suggests that policymakers and stakeholders can promote innovation strategies in sustainable food production ecosystems by encouraging collaboration between different sectors, reducing regulatory barriers, attracting innovative actors, and investing in education and training programs. To achieve measurable environmental and social impact outcomes, policies should promote entrepreneurship and create an enabling environment that encourages innovation and risk-taking.
Originality/value
The originality of this paper concerns the backcasting perspective applied to the analysis of the food ecosystem. This approach facilitates the identification of a path direction for successfully managing open innovation and industry convergence toward a desirable future of sustainable food production.
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Michel Tavares Quinteiro Milcent Assis, Maria Raquel David Pereira Ventura Lucas and Maria Matos Rainho
The purpose of this work is to study the relationships of trust in a local agri-food supply chain in Southern Brazil. In an unsustainable context, where the number of…
Abstract
Purpose
The purpose of this work is to study the relationships of trust in a local agri-food supply chain in Southern Brazil. In an unsustainable context, where the number of mariculturists is decreasing, the authors seek to identify what the factors are and how they contribute to this problem, as well as find solutions aimed at the sustainability of that chain.
Design/methodology/approach
The authors carried out qualitative research with 15 semi-structured interviews that took place in the year 2021. The thematic analysis of the results applied the IRAMUTEQ software and the assessment of the narratives was guided by prior thematic analysis.
Findings
The supply chain under investigation requires better organisation. Communication and interpersonal trust proved important in the relationship between producers and control bodies. The university, as a seed supplier, needs predictability and efficiency to convey inter-organisational trust. Informal relationships are interpersonal and extremely trust-based and inter-organisational trust increases the performance of establishments and promotes the development of innovative structures. Furthermore, in crisis periods interpersonal trust increases.
Practical implications
The results allow policymakers to plan better their actions and build more effective tactics in order to reach sustainable development. This work is also important for stakeholders and managers, as it guides improvements in management, governance and sustainability of agri-food supply chains.
Originality/value
An unprecedented research was done on the studied supply chain, knowing the relationships of trust among them, identifying peculiar partnerships and recognising some constructs and outcomes of trust.
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Nicolas Depetris Chauvin, Fernández-Olmos Marta, Wenbo Hu and Giulio Malorgio
Using the behavioural perspective as a theoretical complement of rational models, this paper examines factors that influence the decision of producing organic wines.
Abstract
Purpose
Using the behavioural perspective as a theoretical complement of rational models, this paper examines factors that influence the decision of producing organic wines.
Design/methodology/approach
Based on a quantitative analysis of 687 wineries belonging to Denomination of Origin in Spain, the authors empirically examine the sequential relationships between manager's personality and winery and institutional level factors, on organic wine production activity and winery export performance.
Findings
This paper investigates the direct and indirect sequential relationships between wineries' factors including an organic production activity and two dimensions of export performance, namely: volume-based and value-based performance. The results of a sequential model provide evidence that openness to experience, a manager's personality trait, has a positive causal relationship with organic wine production.
Practical implications
This paper offers richer insights into the factors leading wine production managers to change from conventional to organic production methods. Specifically, the study shows that wine production managers are susceptible to make decisions to whether produce organic wine or not that may not be consistent with the current theoretical models based on economic efficiency (i.e. comparing costs and benefits). Instead, these decisions are, in part, based on their personality traits. Future research could study how the functional attribute affects the willingness to produce organic wines.
Originality/value
This study contributes to a new strategic implication of organic wine production activity and export performance linkage in behavioural and traditional theoretical perspectives. These findings are valuable for policy makers in the wine sector, as they can better inform and guide policies directed to identify organic production support programs.
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Yun-Cih Chang, Yir-Hueih Luh and Ming-Feng Hsieh
This study investigates the economic outcomes of organic farming controlling for the four major aspects of a cropping system, including climate, genotypes, management and soil…
Abstract
Purpose
This study investigates the economic outcomes of organic farming controlling for the four major aspects of a cropping system, including climate, genotypes, management and soil. Considering possible variations in treatment responses, this study also presents empirical evidence of heterogeneous treatment effects associated with spatial agglomeration or farm covariates.
Design/methodology/approach
Rice farm households data taken from the 2015 Agriculture Census is merged with township-level seasonal weather data, crop suitability index and average income per capita in Taiwan. To address the selection bias problem, the authors apply the Probit-2SLS instrumental variable (IV) method in the binary treatment model under homogeneous and heterogeneous assumptions.
Findings
It is found that organic farming leads to a significantly positive effect on rice farms' economic performances in terms of cost reduction and profit growth. This positive treatment effect is more sizable with spatial agglomeration. Furthermore, the treatment effect of organic farming is found to vary with the farm characteristics such as farmland area and the number of hired workers.
Practical implications
Two important implications for the promotion of sustainable agri-food production are inferred: (1) establishing organic agriculture specialized zones may benefit rural development; (2) providing economic incentives to small farms to expand their scale may be a more effective policy means to promote sustainable agri-food production.
Originality/value
The findings in this study complement the body of knowledge by drawing insights from the agriculture census data and providing profound evidence of the heterogeneous outcomes of organic farming due to spatial clustering and farm covariates.
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Enoch Owusu-Sekyere, Helena Hansson, Evgenij Telezhenko, Ann-Kristin Nyman and Haseeb Ahmed
The purpose of this paper was to assess the economic impact of investment in different animal welfare–enhancing flooring solutions in Swedish dairy farming.
Abstract
Purpose
The purpose of this paper was to assess the economic impact of investment in different animal welfare–enhancing flooring solutions in Swedish dairy farming.
Design/methodology/approach
The authors developed a bio-economic model and used stochastic partial budgeting approach to simulate the economic consequences of enhancing solid and slatted concrete floors with soft rubber covering.
Findings
The findings highlight that keeping herds on solid and slatted concrete floor surfaces with soft rubber coverings is a profitable solution, compared with keeping herds on solid and slatted concrete floors without a soft covering. The profit per cow when kept on a solid concrete floor with soft rubber covering increased by 13%–16% depending on the breed.
Practical implications
Promoting farm investments such as improvement in flooring solution, which have both economic and animal welfare incentives, is a potential way of promoting sustainable dairy production. Farmers may make investments in improved floors, resulting in enhanced animal welfare and economic outcomes necessary for sustaining dairy production.
Originality/value
This literature review indicated that the economic impact of investment in specific types of floor improvement solutions, investment costs and financial outcomes have received little attention. This study provides insights needed for a more informed decision-making process when selecting optimal flooring solutions for new and renovated barns that improve both animal welfare and ease the burden on farmers and public financial support.