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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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becomes a very attractive option for educated individuals. This is more likely to happen under the condition that there are enough non-farm working opportunities outside a household or when the access to those opportunities is not difficult. Therefore, a high level of education would be associated with higher chances for a household to invest less in agricultural activities and transition to non-farm activities. Successful migration would help a household to stay away from farming because financial support through remittance would sustain the livelihood of a household while one or multiple household members find non-farm occupations, such as wage, salary jobs, or even start a new business.

On the contrary, if there are not enough off-farm opportunities in a given region and the access to those opportunities is relatively difficult, it would be more attractive to invest in farming than in non-farm activities. In this case, a high level of education could mean better knowledge about modern agricultural products and techniques, such as proper ways of using chemical fertilizer or genetically modified seeds, better understandings in the agricultural market economy of a given region, and better management of farming and harvested agricultural products. In sum, a high level of education would significantly increase the accessibility to information sources for better methods of agricultural activities. In this case, remittances, experience and information from migration would rather support a household to stay and invest better in farming than to getting a job in the non-farm sector.

Second, natural capital would moderate the relationship between migration and the agricultural transition. Natural capital involves environmental perceptions and the possession of land. Environmental perceptions, measured by the perceptions on water

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environmental conditions compared to the past. Previous studies show that how farmers perceive the conditions of land has significant impacts on agricultural transition (Raut et al. 2010; Paudel and Thapa 2004). This is so because agriculture is highly dependent on the surrounding environmental conditions and it is very difficult to continue farming under the condition of a degrading environment. A poor environmental condition would make a household to stay away from agricultural activities and to consider other options, like finding a job in the non-farm sector. This means that negative environmental perceptions would be associated with high chances for a household to move away from agricultural activities. This pattern would be affected by successful migration since migration would provide relevant resources and new ideas for the transition. When the perception is positive, migration would be more likely to support agricultural intensification since farming would be a more promising option with less risk of losing crop productivity. When the perception is negative, on the other hand, migration would help a household to transition away from agricultural activities and change the modes of production since they would not be an encouraging option when it is expected not to meet the required productivity for their livelihood.

Another component of natural capital is a possession of land. When a household owns land that produces enough for their livelihood, social and financial remittances from migration would work in a way that encourages a household to invest more in agriculture. It would be less risky for households to pursue an already stable income generating source, which is farming in this case. If a household owns unprofitable land or does not own land at all, the accumulated resources and experience from migration would

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salary jobs. Thus, I expect that the effects of natural capital are dependent on 1) whether a household owns land or not, and 2) what type of land a household possesses. In the context of Chitwan, Nepal, there are mainly two types of land: bari and khet. Khet land (irrigated lowland) is considered to be good quality farm land suitable for rice cultivation while bari land (upland) is considered as relatively low quality farm land (Bhandari 2004).

Therefore, having khet land would be associated with the expectation for high crop production, and having bari land would be associated with low expectation. As migration moderates environmental perceptions, a household with bari land would be less likely to invest in agricultural activities and stay away from them in the future while a household with khet land would be more likely to invest in agricultural activities.

Third, physical capital would moderate the relationship between migration and agricultural transition. Physical capital consists of housing quality, agricultural equipment and consumer items. Housing quality represents the symbolic socioeconomic status of a household in general. Having a house with good housing quality would imply that the household is affluent since building a good house or upgrading the materials used for a house requires substantial resources. I expect that if a household had accumulated their wealth through farming, they are more likely to stay in farming, and migration would assist the household to intensify it. On the other hand, if the household had accumulated wealth through non-farm activities, such as salary employment or business, they are more likely to move out of farming. My speculation is that the pattern is inclined towards households moving away from farming since the direction of socioeconomic development in progress in most countries has been towards the decrease in the size of

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there would be more and more opportunities in the non-farm sector, and as a result, investing a household’s time and resources in agricultural activities would become very unattractive for most households in the future.

Besides housing quality, another physical capital, agricultural equipment and consumer items, would also moderate the relationship between migration and agricultural transition. Agricultural equipment includes tools for farming, such as a tractor and a pumpset, and consumer items include items, such as television and radio. Successful migration would encourage a household to keep investing in agriculture especially when a household has many pieces of agricultural equipment to maximize the use of their current investment. When a household owns many consumer items, however, the household would be more likely to move away from agricultural activities and migration would hasten it. Considering that the most components of consumer items in my dissertation are the ones that deliver information, I assume that having many consumer items is linked with a high exposure to the media. In fact, most information from the media is from India and western countries in the context of Chitwan (Yabiku 2006). And the exposure to the media, such as television, radio, and newspapers, has significant influence on accepting new values, norms and information (Lee and Tse 1994). Thus, those households with more consumer items would have lower threshold to accept new ideas, values, norms, and information from the media, which would encourage them to pursue non-farm activities, compared to other households with few consumer items.

Fourth, financial capital would moderate the relationship between migration and agricultural transition. As discussed in the theoretical considerations, referred to Ellis

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liquidated easily or used directly as cash in the context of an agricultural society. In fact, since the poultry farming became popular in 1995, Chitwan supplies more than 60% of the total poultry of Nepal (Bohra-Mishra 2013). Considering the market conditions, it would not be difficult for households to liquidate their poultry into cash. Having many of them would also indicate that a household is in favor of agriculture since raising a substantial number of livestock and poultry represent agricultural assets that farming households invest their resources in. Therefore, being rich in financial capital with successful migration would more likely to be associated with a high chance of a household to invest in agricultural activities rather than the opposite direction. But it should be noted that the fact that livestock and poultry can be easily substituted with cash indicates that they can merely be used as cash for various activities including non-farm activities despite agricultural nature of those two.

Last, social capital would moderate the relationship between migration and agricultural transition as well. Social capital would be an indicator of what other people do in the same context. For example, if there are numerous households trying to move away from agricultural activities and seeking opportunities in the non-farm sector, like a salary or wage employment in an urban area of a given region, it would create a certain network at the neighborhood level sharing information about the pros and cons of the livelihood under the new modes of production. This trend would affect how a household in a neighborhood would react to the rapidly changing socioeconomic conditions.

Migration would encourage or discourage this transition and it is dependent on the social condition of a given neighborhood. In the case of a high proportion of households

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would support a household to intensify agricultural activities. In the opposite case, migration would support a household to invest their resources in the non-farm sector, such as getting a salary job in more urbanized area. Based on these considerations, two main hypotheses and following sub-hypotheses are derived.

A. Changes in agricultural activities: To test these hypotheses, there are four dependent variables: the size of farming land, the size of land for rent, the amount of chemical fertilizer used, and the number of poultry a household raises.

Household capitals:

HA1: Households rich in human capital are associated with less investment in agricultural activities.

HA2: Households rich in natural capital are associated with more investment in agricultural activities.

HA3: Physical capital is associated with the changes in agricultural activities.

HA3a: Households possessing more consumer items are associated with less

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HA3b: Households possessing more pieces of agricultural equipment are associated with more investment in agricultural activities.

HA4: Households rich in financial capital are associated with more investment in agricultural activities.

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Interaction effects: How migration is associated with the agricultural activities is likely to be dependent on the capitals available to the households. In other words, the effect of migration is shaped by household capitals: human, natural, physical, financial and social capitals.

Human capital:

HA6-1: When households are rich in labor, migration will be associated with less

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Natural capital:

HA6-3: When households have poorer environmental perceptions, migration will be associated with less investment in agricultural activities HA6-4: When households own more productive and valued farmland (khet land), migration will be associated with more investment in agricultural activities HA6-5: When households own less productive and valued farmland (bari land), migration will be associated with less investment in agricultural activities

Physical capital:

HA6-6: When households possess many consumer items, migration will be associated with less investment in agricultural activities.

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be associated with more investment in agricultural activities.

Financial capital:

HA6-8: When households raise many poultry or livestock, migration will be associated with more investment in agricultural activities.

Social capital:

HA6-9: When a high proportion of households in the same neighborhood invest in agricultural activities, migration will be associated with more investment in agricultural activities.

B. Changes in the modes of production: To test these hypotheses, there are three dependent variables: transition from farming to non-farming at the household level, transition to the first salary employment and transition to the first business outside the home at the individual level.

Household capitals:

HB1: Households rich in human capital are associated with a higher chance of the changes in the modes of production.

HB2: Households rich in natural capital are associated with a lower chance of the changes in the modes of production HB3: Households rich in physical capital are associated with the changes in the modes of

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HB4: Households rich in financial capital are associated with a higher chance of the changes in the modes of production.

HB5: Households within a neighborhood with a high proportion of households participating in non-farm activities are associated with a higher chance of the changes in the modes of production.

Interaction effects: How migration is associated with the transition from farming to nonfarming, transition to the first salary employment, and transition to the outside home business is likely to depend on the capitals available to the households. In other words, the effect of migration is shaped by household capitals: human, natural, physical, financial and social capitals.

Human capital:

HB6-1: When households are rich in labor, migration will be associated with a higher chance of changes in the modes of production.

HB6-2: When households have more education, migration will be associated with a higher chance of changes in the modes of production.

Natural capital:

HB6-3: When households have poorer environmental perceptions, migration will be associated with a higher chance of changes in the modes of production.

HB6-4: When households own more productive and valued farmland (khet land), migration will be associated with a lower chance of the changes in the modes of

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Physical capital:



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