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Commercialization & Food Security
          Outcomes:
        chi-square Test



          Source: Babu and Sanyal (2009)
Commercialization
• Concept: Refers to growing cash crops; it may
  also include traditional crops (grown for self-
  consumption) if one markets the produced
  surplus or adopts a purchased input
  technology.

• Measure:     Proportion     of     agricultural
  production that is marketed
Commercialization
• Advantages: Growth in income, hence, food
  and nutrition security.
• Disadvantages: Growth at the cost of
  subsistence crops, hence, food and nutrition
  security.
• Query: Trace the macro economic and
  distributional consequences with respect to
  socio-economic-regional profiles.
Commercialization
• Advantages Process specification:
1. cash crops contribute to livelihood diversification and improve
    food and nutrition security by directly increasing the farm
    household’s income earning potential which, in turn, increases the
    household’s spending potential.
2. Most cash crops tend to be labor intensive, cash cropping entails a
    substantial expansion of the demand for hired labor. This
    employment effect for households that hire out labor may
    represent significant livelihood improvement
3. Introduction of cash crops contributes to the development of rural
    financial markets, which partially relieves the cash constraints.
4. Cash cropping opportunities are also accompanied by improved
    technology.
Commercialization
• Counter arguments:
   1. Missing Factor Markets and hence limited scope
     for uniform spread of income and employment
     benefits of commercialization across households
   2. Weak financial markets for expenditure and
     consumption smoothing.
• Issue: Verify empirical evidence on
  commercialization, food and nutrition security.
Effects of Commercialization
• Crucial three characteristics of intrahousehold
  decision making:
  1. Household consumption expenditure allocation
    between food and non-food (mainly health and
    sanitation).
  2. Allocation of food expenditure among the various
    types and quantities of foods.
  3. Distribution of food and other consumption items
    among household members.
  4. Gender allocation of time, labor and control of
    income.
Issues
• Is it more likely for a cash crop growing
  household than a traditional crop growing
  household to be food secure?
• Is it more likely for a cash crop growing
  household than a traditional crop growing
  household to have children with adequate
  nutrition, i.e. absence of malnutrition?
Verification Requirements
• Information on household characteristics such
  as incomes by family members, expenditure on
  food and non-food items, demographic
  characteristics of the members and food intake
  by family members.
• Measures of the children’s nutritional status.
• Test procedure: Pearson’s chi-square test to
  determine if the observed relationship between
  the nominal or categorical variable is statistically
  significant or is due to random variability.
Empirical Analysis
• Evidence from Malawi
• CASHCROP: tobacco, groundnuts, cotton and
  plantain (major cash crops in Malawi).
• Dummy variable CASHCROP = 1 if the
  household grows at least one of these four
  major cash crops and 0 otherwise.
• CASHCROP a measure of commercialization
  of agriculture at the household level.
Empirical Analysis
• Household food security measures:
1) f(dependency ratio, number of meals)
2) Per adult equivalent calorie intake
  (CALADEQ)
• Food security: Households that can satisfy at
  least 80 per cent of the requirement for
  calorie intake.
Nutrition Measures
• ZHANEW, ZWANEW, and ZWHNEW:
  – the Z-scores that identify malnutrition in children
    ZHA (height for age Z-score), ZWA (weight for age
    Z-score) and ZWH (weight for height Z-score).
  – ZHANEW indicates presence or absence of
    stunting,
  – ZWANEW indicates if the child has low weight for
    age ,
  – ZWHNEW indicates the presence or absence of
    wasting.
Nutrition Measures

• Procedure:

1. Exclude Z-scores with absolute values ≶ 5
  (outliers)
2. two categories for three indicators of
  malnutrition are: (i) Z-score <-2 and (ii) Z-
  score ≥2
Criteria for classification

          1 if ZHA - 2(No stunting)
ZHANEW
             0 otherwise(Stunting)

         1 if ZWA - 2(Not under weight)
ZWANEW
            0 otherwise(under wei
                                ght)


           1 if ZWH - 2(No wasting)
ZWHNEW
              0 otherwise(Wasting)
Descriptive analysis: cross-tabulation
               results
• First, Association between CASHCROP, and the
  two food security measures.
• It is important to note that all the above
  variables are nominal or categorical variables.
• H0 : No relationship between commercialization
  (CASHCROP) & food security (CALREQ and
  INSECURE).
• This is tested using cross-tabulation procedures
  (Table 3.1).
Test of Independence between
Commercialization and Nutrition
    Food Security Measure: Calorie
              adequacy
Table 3.1 Cross-tabulation results of cash crop growers
                     and CALREQ


                                   CASHCROP

                     No                Yes             Total

             No            225                 126              351

                          64.10%              35.90%

    CALREQ   Yes           169                 84               253

                          66.80%              33.20%

             Total         394                 210             604 = n
Commercialization and Nutrition
• Cross-tabulation results: 35.9 per cent of the
  cash crop growing households are food
  insecure (as measured by CALREQ) compared
  to 64.1 per cent of the non-cash crop growing
  households.
• Cash crop generates additional income for
  the household to purchase more food.
Test of Independence between
Commercialization and Nutrition
  Food Security Measure: Dependency
        ratio & number of meals
Table 3.2 Cross-tabulation results of cash crop growers
                    and INSECURE
                                                 CASHCROP

                                   No                Yes             Total

             Secure                      49                  26               75

                                        65.30%              34.70%

             Moderately insecure         64                  23               87

                                        73.60%              26.40%
  INSECURE
             Highly insecure             116                 77               193

                                        60.10%              39.90%

             Totally insecure            165                 84               249

                                        66.30%              33.70%

             Total                       394                 210             604 =n
Commercialization and Nutrition
• Cash crop growers are relatively more food
  secure compared to non-cash crop growers.
• This could be due to household’s
  participation in a commercialized crop
  scheme enables it to acquire resources that
  otherwise would not be available.
Commercialization and Child
       Nutrition
Nutrition Measures: Anthropometric
            Indicators
Table 3.3 Cross-tabulation results of cash crop growers
 and height for age Z-scores for children under 5 years


                                   CASHCROP

                     No                Yes             Total

           Low             66                  57               123

                          53.70%              46.30%
  ZHANEW
           Normal          54                  43               97

                          55.70%              44.30%

           Total           120                 100             220=n
Commercialization and Child
         Nutrition - Stunting
• Cross-tabulation: 53.7 per cent of preschoolers
  of the households not growing cash crops are
  stunted, while 46.3 per cent of preschoolers for
  households growing cash crops are stunted.
• Extra income generated through sale of cash
  crops achieves greater income, which helps in
  moderating food insecurity of the household.
• Household members can obtain higher energy
  intake as well as greater dietary diversity. The
  higher energy intake results in better child
  nutritional status.
Table 3.4 Cross-tabulation results of cash crop growers
and weight for age Z-scores for children under 5 years

                                   CASHCROP

                     No                Yes             Total

          Low              97                  79               176

                           55.1               44.90%

 ZWANEW   Normal           44                  38               82

                          53.70%              46.30%

          Total            141                 117             258=n
Commercialization and Child
       Nutrition -Underweight
• The incidence of underweight preschoolers
  was 55.1 per cent for households who did not
  grow cash crops, and 44.9 per cent for
  households who grew cash crops.
• Underweight children are less likely to occur
  in cash crop growing households relative to
  non-cash crop growing households.
Table 3.5 Cross-tabulation results of cash crop growers
  and weight for height Z-scores for children under 5
                         years

                                   CASHCROP

                     No                Yes             Total

            Low            121                 91               212

                          57.08%              42.92%
   ZWHNEW
            Normal          7                  15               22

                          31.82%              68.18%

            Total          128                 106             234 =n
Commercialization and Child
         Nutrition - Wasting
• Incidence of wasting (42.9 per cent) among
  commercial crops grower is less compared to
  households who did not grow the crops (57.1
  per cent).
• Statistical verification calls for test: chi-
  square test.
Chi-square test
• Issue under review: Relationship between cash
  crop growing and household food security and
  nutrition situation.
• Test: Chi-square test
• Purpose: Compare two characteristics and
  verify if they are linked or related to each other.
• Task: Compare the observed frequencies with
  the expected frequencies derived under the
  hypothesis of independence.
Chi-square test
• The square of a standard normal variable
  follows chi-square distribution
• Chi-square test:
   – often used with contingency tables (cross tabulations),
     say, gender and smoking.
   – Test of independence: To verify if the columns are
     contingent on the rows in the table.
   – Null hypothesis: No relationship between row and
     column frequencies.
      • H0: The 2 variables are independent
Assumptions

• Random sample

• Data are in the form of frequencies

• Variables are independent

• Categories for each variable are mutually
  exclusive and exhaustive
Crosstab: Gender x Smoking


                                         Total
                 Smoker     Non Smoker
                                         ( Tj )

                 46         71
Male                                     117
                  (40.97)    (76.02)



                 37         83
Female                                   120      Observed
                  (42.03)    (77.97)
                                                  Expected

Total ( Ti )     83         154          237
                                                             31
Table 3.6 Chi-square tests between CASHCROP and
                      CALREQ




                           Value   p value

          Test statistic   0.471   0.492
         Number of valid
                           604
            cases
Commercialization and Nutrition
• H0 : No relationship exists commercialization and food
  security.
• The value of Pearson chi-square is 0.471 with significance
  level (P value) of 0.492, the null hypothesis cannot be
  rejected at the 10 per cent level.
• The incidence of food insecurity is not statistically different
  between cash crop growers and non-growers.
• Although we find that cash crop growers have better food
  security using the cross-tabulation tests, we cannot infer
  that this relationship is statistically significant.
Table 3.7 Chi-square tests between CASHCROP and
 height for age Z-scores for children under 5 years




                            Value   p value

           Test statistic   0.089   0.766
          Number of valid
                            220
             cases
Commercialization and Stunting
• p value of the test statistic is quite high (0.766).
• Do not reject the null hypothesis.
• There is no observed pattern of relationship
  between cash crop growing and stunted
  preschoolers.
• Although, from the cross-tabulation results we
  find that cash crop growing reduces stunting,
  this relationship is not significant and is only due
  to random variability.
Table 3.8 Chi-square tests between CASHCROP and
 weight for age Z-scores for children under 5 years




                           Value   p value

          Test statistic   0.048   0.827
         Number of valid
                           258
            cases
Commercialization and Underweight
• p value = 0.827 > 0.1.
• Do not reject null hypothesis that there is no
  observed pattern of relationship between
  cash crop growing and underweight
  preschoolers.
• Incidences of underweight preschoolers are
  not statistically different between these two
  groups.
Table 3.9 Chi-square tests between CASHCROP and
weight for height Z-scores for children under 5 years




                            Value   p value

           Test statistic   5.131   0.023
          Number of valid
                            234
             cases
Commercialization and Wasting
• p value = 0.023 and is significant.
• Cash crop growing reduces the incidence of wasting
  among preschoolers.
• Weight for height Z scores (WHZ) are a short-term
  indicator of nutritional status and, at least in the
  short run, cash crop growing can benefit households
  by generating greater income and achieving food
  security.
• Improvement in food security status leads to greater
  distribution of food and other resources at the intra-
  household level which, in turn, alleviates the problem
  of malnutrition for preschoolers.

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Topic 11 commercialization

  • 1. Commercialization & Food Security Outcomes: chi-square Test Source: Babu and Sanyal (2009)
  • 2. Commercialization • Concept: Refers to growing cash crops; it may also include traditional crops (grown for self- consumption) if one markets the produced surplus or adopts a purchased input technology. • Measure: Proportion of agricultural production that is marketed
  • 3. Commercialization • Advantages: Growth in income, hence, food and nutrition security. • Disadvantages: Growth at the cost of subsistence crops, hence, food and nutrition security. • Query: Trace the macro economic and distributional consequences with respect to socio-economic-regional profiles.
  • 4. Commercialization • Advantages Process specification: 1. cash crops contribute to livelihood diversification and improve food and nutrition security by directly increasing the farm household’s income earning potential which, in turn, increases the household’s spending potential. 2. Most cash crops tend to be labor intensive, cash cropping entails a substantial expansion of the demand for hired labor. This employment effect for households that hire out labor may represent significant livelihood improvement 3. Introduction of cash crops contributes to the development of rural financial markets, which partially relieves the cash constraints. 4. Cash cropping opportunities are also accompanied by improved technology.
  • 5. Commercialization • Counter arguments: 1. Missing Factor Markets and hence limited scope for uniform spread of income and employment benefits of commercialization across households 2. Weak financial markets for expenditure and consumption smoothing. • Issue: Verify empirical evidence on commercialization, food and nutrition security.
  • 6. Effects of Commercialization • Crucial three characteristics of intrahousehold decision making: 1. Household consumption expenditure allocation between food and non-food (mainly health and sanitation). 2. Allocation of food expenditure among the various types and quantities of foods. 3. Distribution of food and other consumption items among household members. 4. Gender allocation of time, labor and control of income.
  • 7. Issues • Is it more likely for a cash crop growing household than a traditional crop growing household to be food secure? • Is it more likely for a cash crop growing household than a traditional crop growing household to have children with adequate nutrition, i.e. absence of malnutrition?
  • 8. Verification Requirements • Information on household characteristics such as incomes by family members, expenditure on food and non-food items, demographic characteristics of the members and food intake by family members. • Measures of the children’s nutritional status. • Test procedure: Pearson’s chi-square test to determine if the observed relationship between the nominal or categorical variable is statistically significant or is due to random variability.
  • 9. Empirical Analysis • Evidence from Malawi • CASHCROP: tobacco, groundnuts, cotton and plantain (major cash crops in Malawi). • Dummy variable CASHCROP = 1 if the household grows at least one of these four major cash crops and 0 otherwise. • CASHCROP a measure of commercialization of agriculture at the household level.
  • 10. Empirical Analysis • Household food security measures: 1) f(dependency ratio, number of meals) 2) Per adult equivalent calorie intake (CALADEQ) • Food security: Households that can satisfy at least 80 per cent of the requirement for calorie intake.
  • 11. Nutrition Measures • ZHANEW, ZWANEW, and ZWHNEW: – the Z-scores that identify malnutrition in children ZHA (height for age Z-score), ZWA (weight for age Z-score) and ZWH (weight for height Z-score). – ZHANEW indicates presence or absence of stunting, – ZWANEW indicates if the child has low weight for age , – ZWHNEW indicates the presence or absence of wasting.
  • 12. Nutrition Measures • Procedure: 1. Exclude Z-scores with absolute values ≶ 5 (outliers) 2. two categories for three indicators of malnutrition are: (i) Z-score <-2 and (ii) Z- score ≥2
  • 13. Criteria for classification 1 if ZHA - 2(No stunting) ZHANEW 0 otherwise(Stunting) 1 if ZWA - 2(Not under weight) ZWANEW 0 otherwise(under wei ght) 1 if ZWH - 2(No wasting) ZWHNEW 0 otherwise(Wasting)
  • 14. Descriptive analysis: cross-tabulation results • First, Association between CASHCROP, and the two food security measures. • It is important to note that all the above variables are nominal or categorical variables. • H0 : No relationship between commercialization (CASHCROP) & food security (CALREQ and INSECURE). • This is tested using cross-tabulation procedures (Table 3.1).
  • 15. Test of Independence between Commercialization and Nutrition Food Security Measure: Calorie adequacy
  • 16. Table 3.1 Cross-tabulation results of cash crop growers and CALREQ CASHCROP No Yes Total No 225 126 351 64.10% 35.90% CALREQ Yes 169 84 253 66.80% 33.20% Total 394 210 604 = n
  • 17. Commercialization and Nutrition • Cross-tabulation results: 35.9 per cent of the cash crop growing households are food insecure (as measured by CALREQ) compared to 64.1 per cent of the non-cash crop growing households. • Cash crop generates additional income for the household to purchase more food.
  • 18. Test of Independence between Commercialization and Nutrition Food Security Measure: Dependency ratio & number of meals
  • 19. Table 3.2 Cross-tabulation results of cash crop growers and INSECURE CASHCROP No Yes Total Secure 49 26 75 65.30% 34.70% Moderately insecure 64 23 87 73.60% 26.40% INSECURE Highly insecure 116 77 193 60.10% 39.90% Totally insecure 165 84 249 66.30% 33.70% Total 394 210 604 =n
  • 20. Commercialization and Nutrition • Cash crop growers are relatively more food secure compared to non-cash crop growers. • This could be due to household’s participation in a commercialized crop scheme enables it to acquire resources that otherwise would not be available.
  • 21. Commercialization and Child Nutrition Nutrition Measures: Anthropometric Indicators
  • 22. Table 3.3 Cross-tabulation results of cash crop growers and height for age Z-scores for children under 5 years CASHCROP No Yes Total Low 66 57 123 53.70% 46.30% ZHANEW Normal 54 43 97 55.70% 44.30% Total 120 100 220=n
  • 23. Commercialization and Child Nutrition - Stunting • Cross-tabulation: 53.7 per cent of preschoolers of the households not growing cash crops are stunted, while 46.3 per cent of preschoolers for households growing cash crops are stunted. • Extra income generated through sale of cash crops achieves greater income, which helps in moderating food insecurity of the household. • Household members can obtain higher energy intake as well as greater dietary diversity. The higher energy intake results in better child nutritional status.
  • 24. Table 3.4 Cross-tabulation results of cash crop growers and weight for age Z-scores for children under 5 years CASHCROP No Yes Total Low 97 79 176 55.1 44.90% ZWANEW Normal 44 38 82 53.70% 46.30% Total 141 117 258=n
  • 25. Commercialization and Child Nutrition -Underweight • The incidence of underweight preschoolers was 55.1 per cent for households who did not grow cash crops, and 44.9 per cent for households who grew cash crops. • Underweight children are less likely to occur in cash crop growing households relative to non-cash crop growing households.
  • 26. Table 3.5 Cross-tabulation results of cash crop growers and weight for height Z-scores for children under 5 years CASHCROP No Yes Total Low 121 91 212 57.08% 42.92% ZWHNEW Normal 7 15 22 31.82% 68.18% Total 128 106 234 =n
  • 27. Commercialization and Child Nutrition - Wasting • Incidence of wasting (42.9 per cent) among commercial crops grower is less compared to households who did not grow the crops (57.1 per cent). • Statistical verification calls for test: chi- square test.
  • 28. Chi-square test • Issue under review: Relationship between cash crop growing and household food security and nutrition situation. • Test: Chi-square test • Purpose: Compare two characteristics and verify if they are linked or related to each other. • Task: Compare the observed frequencies with the expected frequencies derived under the hypothesis of independence.
  • 29. Chi-square test • The square of a standard normal variable follows chi-square distribution • Chi-square test: – often used with contingency tables (cross tabulations), say, gender and smoking. – Test of independence: To verify if the columns are contingent on the rows in the table. – Null hypothesis: No relationship between row and column frequencies. • H0: The 2 variables are independent
  • 30. Assumptions • Random sample • Data are in the form of frequencies • Variables are independent • Categories for each variable are mutually exclusive and exhaustive
  • 31. Crosstab: Gender x Smoking Total Smoker Non Smoker ( Tj ) 46 71 Male 117 (40.97) (76.02) 37 83 Female 120 Observed (42.03) (77.97) Expected Total ( Ti ) 83 154 237 31
  • 32. Table 3.6 Chi-square tests between CASHCROP and CALREQ Value p value Test statistic 0.471 0.492 Number of valid 604 cases
  • 33. Commercialization and Nutrition • H0 : No relationship exists commercialization and food security. • The value of Pearson chi-square is 0.471 with significance level (P value) of 0.492, the null hypothesis cannot be rejected at the 10 per cent level. • The incidence of food insecurity is not statistically different between cash crop growers and non-growers. • Although we find that cash crop growers have better food security using the cross-tabulation tests, we cannot infer that this relationship is statistically significant.
  • 34. Table 3.7 Chi-square tests between CASHCROP and height for age Z-scores for children under 5 years Value p value Test statistic 0.089 0.766 Number of valid 220 cases
  • 35. Commercialization and Stunting • p value of the test statistic is quite high (0.766). • Do not reject the null hypothesis. • There is no observed pattern of relationship between cash crop growing and stunted preschoolers. • Although, from the cross-tabulation results we find that cash crop growing reduces stunting, this relationship is not significant and is only due to random variability.
  • 36. Table 3.8 Chi-square tests between CASHCROP and weight for age Z-scores for children under 5 years Value p value Test statistic 0.048 0.827 Number of valid 258 cases
  • 37. Commercialization and Underweight • p value = 0.827 > 0.1. • Do not reject null hypothesis that there is no observed pattern of relationship between cash crop growing and underweight preschoolers. • Incidences of underweight preschoolers are not statistically different between these two groups.
  • 38. Table 3.9 Chi-square tests between CASHCROP and weight for height Z-scores for children under 5 years Value p value Test statistic 5.131 0.023 Number of valid 234 cases
  • 39. Commercialization and Wasting • p value = 0.023 and is significant. • Cash crop growing reduces the incidence of wasting among preschoolers. • Weight for height Z scores (WHZ) are a short-term indicator of nutritional status and, at least in the short run, cash crop growing can benefit households by generating greater income and achieving food security. • Improvement in food security status leads to greater distribution of food and other resources at the intra- household level which, in turn, alleviates the problem of malnutrition for preschoolers.