villages by 0.16 %. Presence of acidic soil in APR villages reduces agricultural land
by 0.3 %.
The effects of travel time to market and acidic soil disappear in NPR villages: the
travel time coefficient for NPR villages ¼ 0.032; z ¼ 1.12; P > Z ¼ 0.26) and,
acidic soil dummy for NPR villages ¼ 0.033; z ¼ 0.48; P > z ¼ 0.63). Presence of
sufficient water for long run crops increases the total agricultural land in a village
by 0.14 %.
8.6 Discussion of Main Results
In this paper I explain the direction and magnitude of impacts on agricultural
intensity and extensive frontier using random effects equations for village agricultural land and intensity of cultivation. I discuss findings below:
8.6.1 Effect of Population
The study finds that a 10 % increase in population leads to a 4.3 % increase in
agricultural land. This is consistent with the findings in Cropper et al. (1999), who
report that a 10 % increase agricultural household density in North Thailand
increases agricultural land by 4 %. However, it is higher than the elasticity of
cleared land with respect to population reported in a spatially explicit study of the
effects of population and transportation costs in Cropper et al. (2001): In that study,
a 10 % increase in population leads to a 1.5 % increase in cleared land in the
forested areas of North Thailand.
33 It is lower than the elasticity reported by
Panayatou (1991) for Northeast Thailand. That study reports that a 10 % increase
in population leads to a 15 % decrease in forest cover.
The effects of population do not differ across the two sets of villages explored in
this paper i.e. villages with ambiguous property rights and villages with no secure
property rights. There is some evidence of a significant difference in direction of
impact for soybean cultivation, but the magnitudes of impact are very small.
8.6.2 Effect of Travel Costs
I find that transportation cost has a quantitatively modest impact on agricultural
decisions in the study area. For total agricultural land in a village, the effects of
33 In this study the elasticity for cleared land with population is smaller.
148
J. Puri
by 0.3 %.
The effects of travel time to market and acidic soil disappear in NPR villages: the
travel time coefficient for NPR villages ¼ 0.032; z ¼ 1.12; P > Z ¼ 0.26) and,
acidic soil dummy for NPR villages ¼ 0.033; z ¼ 0.48; P > z ¼ 0.63). Presence of
sufficient water for long run crops increases the total agricultural land in a village
by 0.14 %.
8.6 Discussion of Main Results
In this paper I explain the direction and magnitude of impacts on agricultural
intensity and extensive frontier using random effects equations for village agricultural land and intensity of cultivation. I discuss findings below:
8.6.1 Effect of Population
The study finds that a 10 % increase in population leads to a 4.3 % increase in
agricultural land. This is consistent with the findings in Cropper et al. (1999), who
report that a 10 % increase agricultural household density in North Thailand
increases agricultural land by 4 %. However, it is higher than the elasticity of
cleared land with respect to population reported in a spatially explicit study of the
effects of population and transportation costs in Cropper et al. (2001): In that study,
a 10 % increase in population leads to a 1.5 % increase in cleared land in the
forested areas of North Thailand.
33 It is lower than the elasticity reported by
Panayatou (1991) for Northeast Thailand. That study reports that a 10 % increase
in population leads to a 15 % decrease in forest cover.
The effects of population do not differ across the two sets of villages explored in
this paper i.e. villages with ambiguous property rights and villages with no secure
property rights. There is some evidence of a significant difference in direction of
impact for soybean cultivation, but the magnitudes of impact are very small.
8.6.2 Effect of Travel Costs
I find that transportation cost has a quantitatively modest impact on agricultural
decisions in the study area. For total agricultural land in a village, the effects of
33 In this study the elasticity for cleared land with population is smaller.
148
J. Puri