Abstract
This study examines the impact of good agricultural practices (GAP) on the farm income and fertilizer usage of smallholders in Nepal. Using qualitative variables, we first construct a GAP-index, a measure of the intensity of GAP adoption. The findings show that a GAP-index constructed through principal component analysis performs better than a GAP-index constructed with Markowitz’s portfolio method. Results reveal a positive and significant relationship between the GAP-index and farm income and a negative and significant relationship between the GAP-index and fertilizer usage. Public and private partnerships that incentivize the adoption of GAP can help increase the income of and reduce fertilizer usage by smallholders.
Original language | English (US) |
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Pages (from-to) | 471-491 |
Number of pages | 21 |
Journal | Agribusiness |
Volume | 35 |
Issue number | 3 |
DOIs | |
State | Published - Jul 2019 |
Keywords
- GAP-index
- Markowitz’s portfolio method (MPM)
- Nepal
- farm income
- good agricultural practices (GAP)
- input usage
- principal component analysis (PCA)
ASJC Scopus subject areas
- Food Science
- Geography, Planning and Development
- Animal Science and Zoology
- Agronomy and Crop Science
- Economics and Econometrics