Transcript Region 1 - World Bank

Analysis of the field work and the
collected information of phase II
Gorée, Senegal - June, 2008
Goal of the data analysis
The surveys are only significant and
representative at the local level
 However, they can be illustrative of the
regional dynamics and trends…
 The surveys combined with the regional
studies and chain analyses provide:




a general description of local characteristics
a justification of the choice of the selected
regions
Information to respond to the program
hypotheses
Main characteristics
of the selected regions
Descriptive analysis
of the sample
Country
Region 1
LEVEL 1
LEVEL 2
LEVEL 3
LEVEL 4
Region 2
Region 3
Main characteristics of the regional sample
Analysis
of the heterogeneity
(local level)
Global income analysis
per quintile
Farm income
analysis
Level 1: regional data breakdown*

Main characteristic of the regional sample

Demography



Human capital


% of HH
Global income


*
Network index
Structure of economic activities


Education
Social capital


Size of the household in adult equivalent
Dependency ratio
Level, distribution and structure of income => which allows to test
the differences between regions
Mean: income shares are calculated for each household, and then the mean
of the household shares of each type of income is calculated
At the household level per region: mean, median, min/max, standard deviation
Level 2: explanation of the
heterogeneity or homogeneity of the
regional results

If the analysis of the global income at the
regional level gives a high standard
deviation
=> check of the heterogeneity at the local level
(locality, community, village)
*
mean, median, min/max, standard deviation
Level 3: Global income classes analysis
Sample
of region 1
Income quintile
Q1
Income quintile
Q2
Income quintile
Q3
Income quintile
Q4
Income quintile
Q5
1
20% of HH
20% of HH
20% of HH
20% of HH
20% of HH
2
20% of income
20% of income
20% of income
20% of income
20% of income
In
1
2
order to compare the income structure and their
characteristics among the 7 RS countries, we must split
our sample into 5 equal rural households’ quintiles
from the poorest to the richest
This
way of calculating the quintiles [or deciles] is
different from income distribution analysis (level 1)
Structure of global income
Agricultural
activities
ar
f
On
m
e
m
o
inc Livestock
production
Crop
production
Agricultural
wage employment
Non-agricultural
activities
No-agricultural
self-employment
Rents
Transfers
No-agricultural
wage employment
Off-farm income
Multiactivities &
income sources
of the rural HH
Level 3: Global income classes analysis
Sample
of region 1
Income quintile
Q1
Farm
income
Income quintile
Q2
Agricultural
wages
Importance
Income quintile
Q3
Selfemployment
Income quintile
Q4
Non
agricultural
wages
Income quintile
Q5
Transfers
Rents
of a given income source in the global income
at the household level
Mono-variable analysis on the main characteristics
per income quintile (mean, median, min/max, deviation)
=> Demography, human and social capital
Level 4: Farm income classes analysis
Sample
of region 1
Farm
income class
1
Farm
income class
2
Mono-variable
Farm
income class
3
Farm
income class
4
Farm
income class
x
analysis
> factor endowment : land, workforce, capital and
equipment
=>Demography, human and social capital
Test of cross-tab analysis on explanatory
variables (example)
Land size
< 1 ha
1 – 2 ha
2 – 5 ha
> 5 ha
Farm
income
class 1
Farm
income
class 2
Farm
income
class 3
Farm
income
class 4
Farm
income
class n
Example: Durable goods index
Durable
goods
Refrigerator
Radio
Region
1
HH1
54
Yes
126
Yes


Prefrigerator 

TV
60

81
No
Bicycle
75
Yes
Motorbike
12
No
3
No
Vehicle
54
 0,18
300
If HH 1 has a refrigerator, than:
1
Drefrigerat
or  1
No
Cell Phone
Number of HHs: n = 300
Probability of having a refrigerator:
Durable goods index:
1
1
D1  Drefrigerat
or  1  Prefrigerator   ...  DVehicle  1  Pvehicle 
D1  1 0,18  1 0,42  1 0,25  0,85

To allow cross-country comparison, the
number of durable goods has to be the same in
each country
Response to the main
hypothesis of RS
Existing processes
of differentiation
among rural households
H1: segmentation on the basis of
market access and integration process
Identification of the integrated chains or
variations among chains?
 Criteria of integration?




Contracts?
Structure of the value-chain?
Marketing channel?
Characteristics of the HH integrated/
participating in integrated value-chain?
 Implications of integration on farm
income?

Region 1
Traditional Contract channel
channel
(without
contracts)
Age of the chief of HH
Education
HH size (adult equivalent)
Network index of the chief of HH
Locality or distance to paved road
Farm size (ha)
Irrigation ratio
Use of fertilizers
Permanent employees (#/farm)
Casual labor (#/farm)
Family labor (% of permanent)
Farms with phone (%)
Equipped with irrigation system (%)
Equipped with transportation (%)
Equipment index
farms with a packing shed (%)
Capitalization level (% of land acquired over the last
5 year)
Capitalization level (variation of livestock stock over
the last 5 years)
% of HH income from farming
% of HH income from non agri. activities
Access or type of credit
H1: segmentation and integration
(result of Thursday’s pm discussion)


1. types of chains with integration  characteristics of
product / specific assets / market (product or demand
driven)
2. type of marketing (HH level)






3. formal / informal contracts
4. characteristics of contracts based on:





Spot market
Middlemen
Monopsony
S.Markets
Product characteristics
Inputs / services provision
5. Index of integration (% of farm income with integrated
chains)
6. Characteristics of the integrated HH
7. Implications of integration on farm income?
H3: Segmentation on the basis of
diversification of activities & income

What definition of diversification?


Farm / off-farm - Index of diversification?
State of diversification in the selected
regions



Importance of agricultural income
Development of waged labor (agri/non-agri)
Other activities and transfers
Characterization of the HH diversifying
their activities and income sources
 Implication of diversification on global
income
