Details
| Original language | English |
|---|---|
| Pages (from-to) | 681-695 |
| Number of pages | 15 |
| Journal | Journal of Development Studies |
| Volume | 52 |
| Issue number | 5 |
| Early online date | 12 Dec 2015 |
| Publication status | Published - 3 May 2016 |
Abstract
This article addresses smallholder oil palm farming in Indonesia and the risk of falling into poverty by comparing contract and non-contract smallholders. We use an asset-based approach to define vulnerability and apply propensity score matching analysis to assess the impact of contract farming. Data were collected from a cross-sectional survey conducted in 2010 of 245 oil palm smallholder households, 126 of which were contract smallholders. The study finds that approximately 40 per cent of oil palm smallholders can be classified as stochastic-transient poor. We also show that while contract participation reduces the negative impact of oil palm price shocks, this is not the case for production shocks. The study concludes that despite positive income effects, contract smallholders also remain vulnerable to poverty.
ASJC Scopus subject areas
- Social Sciences(all)
- Development
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In: Journal of Development Studies, Vol. 52, No. 5, 03.05.2016, p. 681-695.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Contract Farming and Vulnerability to Poverty among Oil Palm Smallholders in Indonesia
AU - Cahyadi, Eko Ruddy
AU - Waibel, Hermann
PY - 2016/5/3
Y1 - 2016/5/3
N2 - This article addresses smallholder oil palm farming in Indonesia and the risk of falling into poverty by comparing contract and non-contract smallholders. We use an asset-based approach to define vulnerability and apply propensity score matching analysis to assess the impact of contract farming. Data were collected from a cross-sectional survey conducted in 2010 of 245 oil palm smallholder households, 126 of which were contract smallholders. The study finds that approximately 40 per cent of oil palm smallholders can be classified as stochastic-transient poor. We also show that while contract participation reduces the negative impact of oil palm price shocks, this is not the case for production shocks. The study concludes that despite positive income effects, contract smallholders also remain vulnerable to poverty.
AB - This article addresses smallholder oil palm farming in Indonesia and the risk of falling into poverty by comparing contract and non-contract smallholders. We use an asset-based approach to define vulnerability and apply propensity score matching analysis to assess the impact of contract farming. Data were collected from a cross-sectional survey conducted in 2010 of 245 oil palm smallholder households, 126 of which were contract smallholders. The study finds that approximately 40 per cent of oil palm smallholders can be classified as stochastic-transient poor. We also show that while contract participation reduces the negative impact of oil palm price shocks, this is not the case for production shocks. The study concludes that despite positive income effects, contract smallholders also remain vulnerable to poverty.
UR - http://www.scopus.com/inward/record.url?scp=84949547348&partnerID=8YFLogxK
U2 - 10.1080/00220388.2015.1098627
DO - 10.1080/00220388.2015.1098627
M3 - Article
AN - SCOPUS:84949547348
VL - 52
SP - 681
EP - 695
JO - Journal of Development Studies
JF - Journal of Development Studies
SN - 0022-0388
IS - 5
ER -