Prices and tree planting on hillside farms in Palawan.
Shively G. E.
Author Affiliation: Purdue University, West Lafayette, Indiana, USA.
World Development (Oxford) 27 : 937-949
Abstract : This paper investigates determinants of tree planting decisions on a sample of 100 low-income farms surveyed in 1994 in an upland area of Brooke's Point in south east Palawan, Philippines. The analysis quantifies the extent to which agricultural prices, price uncertainty, and farm-specific characteristics help to explain mango planting decisions on hillside farms. Regression analysis is applied to data on tree planting for 1981-94. Results indicate that tree planting is positively correlated with mango prices and negatively correlated with prices of competing crops. Relative price uncertainty and farm size also play important roles in explaining tree planting patterns. Implications for policies to encourage tree planting are discussed.