SRI LANKAN JOURNAL OF AGRICULTURAL ECONOMICS
Volumes 22 Number 1. 2021
Author - B. M. D. C. Balasooriya , J. C. Edirisinghe1 and P. Seneviratne
The adoption of recommended practices in agriculture boosts production and thereby increases farmer income. It ensures that scarce resources are optimally utilized. Awareness and perception of recommendations are precursors to adoption in the rubber smallholder sector. This research tested the causal links between awareness, perception and adoption. Data were collected using a pretested questionnaire covering four rubber growing districts. Three indices were developed for awareness, perception and adoption. Three behavioral equations were developed to estimate the relationship between awareness, perception and adoption and they were simultaneously estimated using a three stage least square technique. Results revealed that awareness of recommendations significantly influences perception and the perception in turn significantly influences adoption and therefore, the link between these was clear. The role of extension effort is significant in creating awareness while peer effect and human capital significantly assist in formation of favorable perception on technologies. Keywords: Adoption, Awareness, Perception, Rubber smallholders, Three stage least square
Author - K.R.H.M. Ranjan , J.C. Edirisinghe , H.M.L.K. Herath , U.K. Jayasinghe-Mudalige , I.V. Kuruppu , H.A.C.K. Jayathilake , M.A. Wijeratne , W. Wijesuriya , D.C. Balasooriya , A.D.K.S.S. Somarathna , S. Karunaratne and S. Jayawardana
This paper applied a stochastic frontier model to measure total factor productivity growth, technical efficiency change, and technical change in tea production in the estate sector in Sri Lanka. Monthly data from 35 tea estates relating to the period 2005 to 2019 were used. Two functional forms with two distributional assumptions were tested. A Translog production frontier with the inefficiency term distributed as a truncated normal distribution was found to be the best fit for data. Results revealed that on average estate sector tea production operates 48% below the potential output indicating possibilities of increasing performance without any significant changes in inputs. Further, the overall rate of technical progress was estimated at 0.002 percent per year. The overall rate of technical efficiency change declined by 0.013 percent per year. The combined effect of slow technical progress, dominated by the fall in technical efficiency resulted in the decline in the total factor productivity in the corporate tea sector at a rate of 0.002 percent per year. This net effect of declining Total Factor Productivity raises concerns about the sustainability of the tea sector in Sri Lanka in the long run. Policies to shift up the production frontier and improvements in managerial practices to combat declining efficiency levels are recommended.
Author - R. A. P. I. S. Dharmadasa and K. P. A. L. K. Dharmadasa
The purpose of this study was to find out the effect of migration on the livelihood security of the estate sector in Sri Lanka as none of the other reported studies covered livelihood security issues with respect to whole country. Data for the study come from the Household Income and Expenditure Survey (2016) conducted by the Department of Census and Statistics of Sri Lanka. A composite index approach was applied to construct the livelihood security index which was formulated based on economic
security, food security, education security, health security, and habitat security. The propensity score matching (PSM) method was employed to illustrate the impact of migration and remittances on livelihood security and its outcomes, while addressing the self-selection problem. Average treatment effect (ATT) results showed significant differences in ATT effect of remittances on economic security, food security, and education security, and no significant difference in ATT of receiving remittances with health security and habitat security. Remittance receiving households consisted of high education security and health security than the non-remittance-receiving households with low economic security, food security, and habitat security. The study concludes that migration and remittances affect livelihood
security of estate sector households positively.
Author - J. Weerahewa, H. Kanthilanka, R.J. Farquharson, S. Thrikawala, T. Ramilan, and D. Dayananda
Participation in off-farm employment is a strategy adopted by farmers in many developing countries to increase and stabilize their incomes. However, empirical evidence on its effects on management of natural resources is context specific. This study examines the pattern on labor use with special emphasis on determinants and potential effects of participation in off-farm employment by the villagers reside in Thirappane tank cascade system in Sri Lanka. Data gathered from a primary survey conducted among 134 households were used for analysis. The results of probit models revealed that the farmers who possess agricultural assets have a higher probability of joining employment in other-farms and those who are educated and own large farms participate in non-farm sector employment. Community management of the village tank cascade systems will be challenging owing to the increased interest in off-farm activities by the able.