Agricultural practices, price shocks, and weather shocks- impact on household food security: Empirical evidence from Malawi
Sehgal, Mrignyani
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https://hdl.handle.net/2142/125720
Description
Title
Agricultural practices, price shocks, and weather shocks- impact on household food security: Empirical evidence from Malawi
Author(s)
Sehgal, Mrignyani
Issue Date
2024-07-12
Director of Research (if dissertation) or Advisor (if thesis)
Michelson, Hope C
Doctoral Committee Chair(s)
Michelson, Hope C
Janzen, Sarah Ann
Almanza, Catalina Herrera
Committee Member(s)
Upton, Joanna B
Department of Study
Agr & Consumer Economics
Discipline
Agricultural & Applied Econ
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Food Security
Malawi
Weather Shocks
Price Shocks
Dietary Diversity
Abstract
This research explores three critical aspects affecting household food security (HFS) in rural Malawi. Malawi is an agrarian subsistence-based economy where farm-holders primarily consume from own production. In Chapter 1, we test if diversifying farm-level crop production can improve HFS. To address the endogeneity between household crop diversification decisions and dietary diversity, an instrumental variable approach is used. Findings indicate a positive impact of production diversity on HFS, particularly reducing the reporting of more severe food insecurity strategies. Chapter 2 examines the seasonal and unexpected variations in maize prices and its association with HFS. Using panel fixed effects model, the study finds that unexpected increases in maize prices generally improve food security. Improvements in food security are driven by poor or middle-income households when maize prices are unexpectedly higher in the harvest season, as poor households are typically net sellers during this period. In chapter 3 we focus on reallocation of labor in response to a cyclone, a significant co-variate shock differentially impacting households within and across villages. High dependence on rain-fed agriculture makes the country vulnerable to weather shocks and households rely on labor markets to smooth consumption. Results from difference-in-difference analysis suggest that households affected by the weather shock decrease their participation in agricultural piecework immediately after the shock as well as in the following agricultural season. This reduction is hypothesized to be due to decreased labor demand in shock-affected areas, as wealthier households, also negatively impacted by the weather shock, reduce their hiring.
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