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«A Dissertation Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy Approved November 2014 by the Graduate ...»

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However, the gap reduces significantly as the duration of migration increases. This implies that education for a young household member plays a role in keeping a household away from farming, but migration represses the influence of education when the duration increases.

Second, the interaction between migration and natural capital, especially the possession of bari or khet land, has a significant impact on the size of farming land.

These results are visualized in Figure 6 and Figure 7. They show that migration is negatively associated with the size of farming land when a household changed to own any type of land. This result is somewhat the opposite of my expectation. Having own land could indicate that a household does not need to farm as a tenant anymore, and as a result, they reduce the size of farming land, use their land for subsistence, and seek better income-generating opportunities in the non-farm sectors.

Third, the interaction between migration and physical capital, especially agricultural equipment, has significant impact on the size of farming land. The result is visualized in Figure 8. When a household owned the same number of agricultural equipment over time, migration shows positive nor negative effect on the size of farming land. However, when a household owned less pieces of agricultural equipment, for example, two less pieces of agricultural equipment, they farm less as the duration of migration increases. On the other hand, when a household owned more pieces of

–  –  –

farm more as the duration of migration increases. These results tell us that a household investing more in agricultural assets would probably want to keep farming while a household investing less in them would seek other opportunities besides farming over time.

Last, the interaction between migration and financial capital, especially livestock, has significant impact on the size of farming land. These results are visualized in Figure

9. The pattern is almost the same with the one of the interaction between migration and agricultural equipment: there is negative association between migration and the size of farming land when a household owns less valuable livestock, and positive association when a household owns more valuable livestock. The result shows that how much a household invests in agricultural assets, here in livestock, decides the future investment of their resources in agricultural activities.

In sum, analysis results support hypotheses HA1, HA3a, HA6-2, HA6-4, HA6-7, and HA6-8. In detail, the result of the level of education supports the hypothesis HA1 stating the negative effect of human capital on the changes in agricultural activities. The result of consumer items supports the hypothesis HA3a stating the negative effect of physical capital on the changes in agricultural activities. The result of the interaction between migration and education supports the hypothesis HA6-2 stating the negative association between migration and agricultural activities in case there is a highly educated person in a household. The result of the interaction between migration and khet land supports the hypothesis HA6-4 stating the positive association between migration and agricultural activities in case a household acquires khet land. The results of the

–  –  –

stating the positive association between migration and agricultural activities in case a household possess many agricultural equipment. Last, the results of the interaction between migration and livestock support the hypothesis HA6-8 stating the positive association between migration and agricultural activities in case a household raises many valuable livestock.

As the last step of the analysis on the size of farming land, additional analysis was done to test the effects of domestic and international migration on the size of farming land by using the secondary dataset including the information from the Life History Calendar. Though most results of household capitals are consistent with the previous results discussed, both domestic and international migration show no significant effects on the size of farming land.

Size of Land for Rent. The second analysis is to test the effects of migration and household capitals on the changes in the size of land for rent. This is a household-level analysis. The most appropriate model for this analysis is the first difference model. In this model, the changes in the size of land for rent between 2001 and 2006 are the results of the changes in migration and the changes in household capitals between 1996 and 2001.

In case a household does not rent land out, the size of land for rent is considered to be zero square meters. As a result, all the households that did not rent their land out in 2001 or 2006 are included in the sample.

The descriptive statistics of the size of land for rent by migration status is presented in Table 6. In both years, 2001 and 2006, the size of land for rent is larger

–  –  –

the difference is about 470 square meters, and it reduced down to 325 square meters in 2006.

The results of the first different model are summarized in Table 8A. Two models test the main effects of the changes in migration and household capitals on the changes in the size of land for rent. Model 1 includes only migration, and household capitals are added in Model 2. The results in Model 1 and 2 show that duration of migration does not have any direct impact on the size of land for rent. Among the household capitals, possession of khet land (irrigated low land) and the value of livestock show significant effects on the size of land for rent. In detail, gaining khet land increases the size of land for rent by 560 square meters. This is natural in that a household has more land to rent out by purchasing new land. Having higher value of livestock, on the other hand, decreases the size of land for rent. This could be due to the fact that raising livestock requires a certain amount of land to keep them. It also could indicate the tendency of the households with additional investment in agricultural activities to continue what they have been doing (agriculture) rather than diversifying into nonagricultural activities. As a result, the purchase of additional livestock keeps a household from renting their land out more.





The interaction effects are summarized in Table 8B. Model 3 tests the interactions between migration and human capital, Model 4 tests the interactions between migration and natural capital, Model 5 tests the interactions between migration and physical capital, Model 6 tests the interactions between migration and financial capital, and Model 7 tests the interactions between migration and social capital. The interaction

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capital.

The interaction results between migration and number of household member of working age are visualized in Figure 10. The result shows that additional labor, represented by the number of household members of working age, represses positive effect of migration on the size of land for rent. When a household gained a labor over time, one more member for example, migration has positive association with the size of land for rent. When a household lost a labor, one less member of working age for example, migration still has positive association with the size of land for rent, but at the lesser degree. The results indicate the substantial influence of labor loss in addition to migration for agricultural activities.

The interaction between migration and livestock shows the same pattern, and it is visualize in Figure 11. In case a household possessed more valuable livestock than before, they are likely to reduce the size of land for rent as the duration of migration increases. On the contrary, when a household possessed less valuable livestock than before, they are likely to increase the size of land for rent as the duration of migration increases. Both results are consistent with the result in the analysis of the changes in the size of farming land: 1) more available labor in a household gives the household more options to secure their livelihood by diversifying their livelihood; 2) more investment in agricultural assets makes a household to keep doing so in the same types of activities as before.

As the last step of the analysis on the size of land for rent, additional analysis was done to test the effects of domestic and international migration on the size of land for rent

–  –  –

The results indicate that both domestic and international migration show no effects on the size of land for rent.

In sum, the analysis results only support the hypothesis HA6-7 stating the positive association between migration and agricultural activities in case a household possesses multiple pieces of agricultural equipment.

As the last step of the analysis on the size of land for rent, additional analysis is done to test the effects of domestic and international migration on the size of land for rent by using the secondary dataset including the information from the Life History Calendar.

The results indicate that both domestic and international migration show no effects on the size of land for rent.

Number of Poultry. The third analysis is to test the effects of migration and household capitals on the changes in the number of poultry. This is a household-level analysis. The most appropriate model for this analysis is the first difference model. In this model, the changes in the number of poultry between 2001 and 2006 are the results of the changes in migration and the changes in household capitals between 1996 and 2001. In case a household does not raise any poultry, the number of poultry is considered to be zero. As a result, all the households with or without poultry are included in the sample.

The descriptive statistics of the number of poultry by migration status is presented in Table 6. In both years, 2001 and 2006, the number of poultry is larger for the households without migrants compared to the households with migrants. In 2001, the difference is about nine poultry, and it becomes wider to fourteen poultry in 2006.

–  –  –

models test the main effects of the changes in migration and household capitals on the changes in the number of poultry. Model 1 includes only migration, and household capitals are added in Model 2. The results of Model 1 show that duration of migration does have negative impact on the number of poultry. This result persists after controlling for household capitals in Model 2. In Model 2, one additional month in duration of migration decreases the number of poultry by.7. This might be an indicator that households are using remittances from migration to stay away from farming rather than intensify farming. Among household capitals, only consumer items show negative impacts on the number of poultry. One additional consumer item is associated with a 9.5 decrease in the number of poultry. This is as expected in that households with many consumer items tend to seek opportunities in the non-farming sector.

The interaction effects are summarized in Table 9B. Model 3 tests the interactions between migration and human capital, Model 4 tests the interactions between migration and natural capital, Model 5 tests the interactions between migration and physical capital, Model 6 tests the interactions between migration and financial capital, and Model 7 tests the interactions between migration and social capital. The interaction results show significant interaction effects between migration and household capitals except human capital.

The interaction between migration and khet land is visualized in Figure 12. It shows that having good quality land (khet land) makes a household reduce their investment in poultry. Once a household owns khet land, they are likely to decrease the number of poultry they raise as the duration of migration increases. The interaction

–  –  –

visualized in Figure 13. When a household owns more pieces of agricultural equipment over time, migration is negatively associated with the number of poultry.

When a household owns less pieces of agricultural equipment, migration is positively associated with the number of poultry. The results imply that rural households in Chitwan tend to decide either investing more in farming or in raising poultry especially when they have available resources from migration, and it depends upon how much they invested in agricultural assets before. Considering that farming and raising poultry are both laborintensive agricultural activities, investing resources in one activity would not allow a household to invest further in the other activity. In addition, the interaction between migration and livestock is visualized in Figure 14. When a household raises less valuable livestock than before, migration shows a positive association with the number of poultry. On the other hand, when a household raises more valuable livestock, migration shows a negative association with the number of poultry. Again, it seems like it is a matter of choice between two labor-intensive activities, raising livestock or poultry, as we have seen in the case of the interaction between migration and livestock in the analysis on the size of land for rent.

The interaction of social capital with migration also shows a significant effect, and it is visualized in Figure 15. How many households in the same neighborhood invest in poultry affects the number of poultry a given household raises. When there was a 50% decrease in the proportion of the households raising poultry in the same neighborhood, migration is negatively associated with the number of poultry. On the contrary, when there was a 50% increase in the proportion of the households raising

–  –  –

poultry, but not as strong as in the previous scenario.

In sum, the analysis results only support the hypothesis HA3a stating the negative effect of physical capital on the changes in agricultural activities.

As the last step of the analysis on the number of poultry, additional analysis is done to test the effects of domestic and international migration on the number of poultry by using the secondary dataset including the information from the Life History Calendar.

The results indicate that both domestic and international migration show no effects on the number of poultry.



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