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A review of agricultural production risk in the developing world

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  • Hurley, Terrance M.

Abstract

Many of the poor in the developing world rely on agriculture for their livelihood. Unfortunately, agricultural production is inherently risky, which puts these farmers at risk of not being able to meet even their basic subsistence needs. Therefore, understanding these farmers’ attitudes towards and responses to production risk is an important piece of the puzzle for designing effective interventions to help them overcome poverty. The purpose of this paper is to provide an overview of the empirical literature that investigates farmers’ risk attitudes and responses to production risk in developing countries. Some attention is given to the implications of production risk for the uptake and use of new technologies. The paper also provides a review of the theoretical foundations that have guided the bulk of this research. Finally, the paper discusses several opportunities for furthering the knowledge gained to date.

Suggested Citation

  • Hurley, Terrance M., 2010. "A review of agricultural production risk in the developing world," Working Papers 188476, HarvestChoice.
    • Handle: RePEc:ags:hcwpum:188476
    DOI: 10.22004/ag.econ.188476
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    4. Patil, V. & Veettil, P.C., 2018. "Experimental Evidence of Risk Attitude of Farmers from Risk-Preference Elicitation in India," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277331, International Association of Agricultural Economists.
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    7. de Brauw, Alan & Eozenou, Patrick, 2014. "Measuring risk attitudes among Mozambican farmers," Journal of Development Economics, Elsevier, vol. 111(C), pages 61-74.
    8. Terrance Hurley & Jawoo Koo & Kindie Tesfaye, 2018. "Weather risk: how does it change the yield benefits of nitrogen fertilizer and improved maize varieties in sub‐Saharan Africa?," Agricultural Economics, International Association of Agricultural Economists, vol. 49(6), pages 711-723, November.
    9. Jimena Gonzalez-Ramirez & Poonam Arora & Guillermo Podesta, 2018. "Using Insights from Prospect Theory to Enhance Sustainable Decision Making by Agribusinesses in Argentina," Sustainability, MDPI, vol. 10(8), pages 1-15, August.
    10. Saul Ngarava & Abbyssinia Mushunje & Amon Taruvinga & Peter Mukarumbwa & Simbarashe Tatsvarei & Ebenezer T Megbowon, 2018. "Determinants of Risk Behaviour in Livestock Development Programs: Evidence from South Africa's Kaonafatso Yadikgomo (Kyd) Scheme," Journal of Economics and Behavioral Studies, AMH International, vol. 10(5), pages 7-15.
    11. Bannor, Frank & Dikgang, Johane & Gelo, Dambala, 2021. "Agricultural total factor productivity growth, technical efficiency, and climate variability in sub-Saharan Africa," EconStor Preprints 231310, ZBW - Leibniz Information Centre for Economics.
    12. Beddow, Jason M. & Kriticos, Darren J. & Pardey, Philip G. & Sutherst, Robert W., 2010. "Potential global crop pest distributions using CLIMEX: HarvestChoice Applications," Working Papers 188474, HarvestChoice.
    13. Mohan, Sarah, 2020. "Risk aversion and certification: Evidence from the Nepali tea fields," World Development, Elsevier, vol. 129(C).
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    Production Economics; Risk and Uncertainty;

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