Journal of Economics and Development, Vol. 25 No. 2, pp. 153-170. https://doi.org/10.1108/JED-10-2022-0204
Reported shocks, households' resilience and local food commercialization in Thailand
Menglan Wang; Manh Hung Do
The authors examine the factors affecting households' resilience capacities and the impacts of these capacities on household consumption and crop commercialization.
The authors use panel data of 1,648 households from Thailand collected in three years, 2010, 2013 and 2016. The authors employ an econometric model with an instrumental variable approach to address endogenous issues.
The study results show that the experience of shocks in previous years positively correlates with households' savings per capita and income diversification. Further, a better absorptive capacity in the form of better savings and a better adaptive capacity in the form of higher income diversification have a significant and positive influence on household expenditure per capita and crop commercialization.
Development policies and programs aiming to improve income, increase savings and provide income diversification opportunities are strongly recommended.
The authors provide empirical evidence on the determinants of resilience strategies and their impacts on local food commercialization from a country in the middle-income group.
Keywords:Absorptive capacity, Adaptive capacity, Crop commercialization, Panel data, Instrumental variable