Browsing by Subject "INSTITUTIONAL CHANGE"

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  • Sell, Mila; Vihinen, Hilkka; Gabiso, Galfato; Lindström, Kristina (2018)
    This article describes the process and analyses the results of a project in Ethiopia establishing an innovation platform (IP) as a tool for co-creation from an innovation systems perspective. The results are encouraging, suggesting positive effects both on yields, but more importantly on the capacity and role of participants as communicators and agents of change in the community. The IP seems promising in creating new networks and modes of communication. The importance of good facilitation, commitment by all members from the start, and feedback loops driving the process was found to be essential.
  • Ren, Yang; Kuuluvainen, Tauno Jari Mikael; Yang, Liu; Yao, Shumbo; Xue, Caixia; Toppinen, Anne (2018)
    To investigate the effect of improved property rights and, in particular, village democracy under China's Collective Forest Tenure Reform (Tenure Reform) on household forestry investments, we estimate both tobit models and the more general Cragg models for farmers' labor and monetary inputs into forestry, using survey data of 652 households from the southern collective forest region of China. The results reveal that the improved forestland use and disposition rights had a significant effect on household investments in forestry, while the beneficiary right did not. In addition, the results suggest that village democracy had a positive effect on households' forestry investments. More importantly, we find that village democracy was able to significantly strengthen the investment incentive effect of the improved property rights under the Tenure Reform. These effects may be explained by the fact that village democracy improved households' perception, cognition, and, subsequently, confidence toward, in particular, the use and disposition rights of the forests entitled to them. Therefore, the findings suggest that to increase the investment incentives of the Tenure Reform further, governments could strengthen the bundle of households' use and disposition rights, as well as their related policies. Also, our findings indicate that governments could significantly improve the performance of public policies by effectively employing democratic procedures in the process of policy implementation.
  • Zhang, Han; Kuuluvainen, Jari; Yang, Hongqiang; Xie, Yi; Liu, Can (2017)
    China's new round tenure reform has devolved collective forests to individuals on an egalitarian basis. To balance the equity-efficiency dilemma, forestland transfers are highly advocated by policymakers. However, the forestland rental market is still inactive after the reform. To examine the role of off-farm employment in forestland transfers, a simultaneous Tobit system of equations was employed to account for the endogeneity, interdependency, and censoring issues. Accordingly, the Nelson-Olson two-stage procedure, embedded with a multivariate Tobit estimator, was applied to a nationally representative dataset. The estimation results showed that off-farm employment plays a significantly negative role in forestland rent-in, at the 5% risk level. However, off-farm activities had no significant effect on forestland rent-out. Considering China's specific situation, a reasonable explanation is that households hold forestland as a crucial means of social security against the risk of unemployment. In both rent-in and rent-out equations, high transaction costs are one of the main obstacles impeding forestland transfer. A remarkable finding was that forestland transactions occurred with a statistically significant factor equalization effect, which would be helpful to adjust the mismatched labor-land ratio and improve the land-use efficiency.