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ФЕДЕРАЛЬНАЯ СЛУЖБА ПО НАДЗОРУ В СФЕРЕ СВЯЗИ, ИНФОРМАЦИОННЫХТЕХНОЛОГИЙ И МАССОВЫХ КОММУНИКАЦИЙ (РОСКОМНАДЗОР)РОССИЙСКИЙ ЖУРНАЛ СЕЛЬСКОХОЗЯЙСТВЕННЫХ И СОЦИАЛЬНО-ЭКОНОМИЧЕСКИХ НАУКRUSSIAN-ENGLISH JOURNAL<strong>Russian</strong> <strong>Journal</strong><strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong><strong>Sciences</strong>№8(8), August 2012ISSN 2226-1184, http://www.rjoas.com


СОДЕРЖАНИЕРоссийский журналсельскохозяйственных и социальноэкономическихнаукCONTENT<strong>Russian</strong> <strong>Journal</strong><strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong><strong>Sciences</strong>выпуск 8(8) issueавгуст 2012 AugustМ.О. ИзотовОсобенности экономического подхода приисследовании феномена коррупцииС. НайэмThe rationale behind weakly tied networking<strong>of</strong> the bangladeshi diaspora in MalaysiaС. Мустафа, П. Бзугу,И. Али, А. АбдуллахиDeterminants <strong>of</strong> adaptation to deforestationamong farmers in Madagali local governmentarea <strong>of</strong> Adamawa state, NigeriaГ.Д. АкквахA threshold cointegration analysis <strong>of</strong> asymmetricadjustments in the Ghanaian maize marketsЛ.А. ШиловаСоциально-экономическое развитиеЦентрального федерального округаРоссийской Федерации с учетомметодологических аспектов инновационногоуправления отходами3 M. IzotovFeatures <strong>of</strong> an economic approach at research<strong>of</strong> corruption phenomenon6 S. NayeemThe rationale behind weakly tied networking<strong>of</strong> the bangladeshi diaspora in Malaysia15 S.B. Mustapha, P.M. Bzugu,I.M. Ali, A. AbdullahiDeterminants <strong>of</strong> adaptation to deforestationamong farmers in Madagali local governmentarea <strong>of</strong> Adamawa state, Nigeria21 H. de-Graft AcquahA threshold cointegration analysis <strong>of</strong> asymmetricadjustments in the ghanaian maize markets26 L. Shilova<strong>Socio</strong>-economic development <strong>of</strong> the Centralfederal district <strong>of</strong> <strong>Russian</strong> Federation withmethodological aspects <strong>of</strong> innovation wastemanagement


M.O. IZOTOV, Orel State Agrarian UniversityABSTRACTFEATURES OF AN ECONOMIC APPROACH AT RESEARCHOF CORRUPTION PHENOMENON M.O. Izotov, Researcher.. , !"#$%Orel State Agrarian University, Orel City, Russia"&!%$ '!#"!( '"" $("!$(, '. ")&, !!$*Phone: +7 (920) 812-90-64, E-mail: max198522@mail.ruReceived August 10, 2012In article features <strong>of</strong> an economic approach are considered when developing the anti-corruptionmeasures directed on restriction <strong>of</strong> possibilities <strong>of</strong> any discretion <strong>and</strong> excessive intervention <strong>of</strong> civilservants in economic activity, including through differentiation <strong>of</strong> functions <strong>and</strong> specification <strong>of</strong> competences.The special urgency <strong>of</strong> researches <strong>of</strong> a problem <strong>of</strong> corruption as special social phenomenonis noted.+ -, - , . ! - .KEY WORDSCorruption; Social <strong>and</strong> economic researches; Phenomenon; Model; <strong>Economic</strong> approach.,- " ; # - ; $ ; % ; & . .!&(#(( "(/* !"(/(/ "!!$ -!%/ 01(!( !& %" ( %&2 ."-0&(/ $!!&(#$* %"".3$$ %% !0'!3$&2' *&($*. ( $($(/ $/(!*3(& "*# !3$&24 $ '/$"4 %,%5#* $ %"4 !$ ! !1(!(%&# "$$( ."0&(/$%$ %"".3$$ $0"20 ! ( . 6%/$(!% %(, "/%4 ($-!$3$&2 7%& 70-( ''. XX .,!8"/$"&!* ! .#4# $!!&(#$$8(/( %"".3$$. '&! (/, %"".-3$* $(!* $!4#* $ .!&%$, *-&*(!* "3$&2 ($ #5( "/&2 ) "-$#!29 .(#($*, ."&( -45#($( .$/&2' !.!0 "(&$3$$$("(! !&$*4 '"$(!$ "(!"-!. (!2, «"(7($( #2 (*2) *% .$-"(!* 5( %&2%&*3$9 " $ '#, $ &90( #"'( 6%/$(!%( "(7($(»[1]. ."$/(", . -%%("/, #' $!(&( #' .#4#, %"".3$* .-"(#(&*(!* %% «"$#!2 6%/$(!%-' .(#($* !&$*4 "$!%, 0!&&(-' !("7($(/ ."(!.&($* $ /5/%$(/ ('» [2]..$!(!* %"".3$( .(#($(."$ ./1$ /#(&$ «."$3$.& – '(», #(-&2 .$!9 "04 ''("! [3]. /#(&2 4"%("$( $/7($*"(4 !$%: ."$3$.&, '( $ %&$(-. "$3$.&/ *&*(!* &$3 $&$ "'$-3$*, !*1$( .("(# !0 3(&$ $ 0&#91$("(!"!/$ #&* $4 "(&$3$$. (' "&$ /'!.2 %% -&$0 '!#"!( "'$&$ (#/!, '!#"! $&$ 01(! 3


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<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012THE RATIONALE BEHIND WEAKLY TIED NETWORKING OF THE BANGLADESHIDIASPORA IN MALAYSIAABSTRACTSultana Nayeem, Associate Pr<strong>of</strong>essorDepartment <strong>of</strong> Development Studies, University <strong>of</strong> Dhaka, Dhaka-1000, BangladeshPhone: +880-1924752886, E-mail: sultana_nayeem@yahoo.caReceived August 7, 2012This paper is an exploration <strong>of</strong> the survival strategies <strong>of</strong> the Bangladeshi Diaspora in Malaysia. Tocope with the realities, Bangladeshi migrants develop different forms <strong>of</strong> survival strategies. As a resultintra <strong>and</strong> inter-ethnic strong <strong>and</strong> weak ties are formed in the receiving country. Empirical analysisdepicts that respondents with weak ties have higher income mobility than those with strong ties. It alsodemonstrates that the Bangladeshi migrants <strong>of</strong> the study areas do not restrict themselves only to theirclose social networks; rather they develop distant networks for higher social mobility. Or in otherwords, though the ideal socio-cultural model emphasizes community cohesion (something that can beconceptualized as an example <strong>of</strong> a tightly structured social system), the actual behavior <strong>of</strong> the Bangladeshimigrants indicates a loosely or disintegrated social system. Migrant’s embeddedness in the ongoingsocial relations <strong>and</strong> power structures regulates the nature <strong>and</strong> strength <strong>of</strong> these ties.KEY WORDSMixed embeddedness; Bangla bazaar; Bangladeshi diaspora; Strong ties; Weak ties.Migration <strong>and</strong> settlement <strong>of</strong> Bangladeshis inMalaysia is a common fact during this period <strong>of</strong>globalization. The question is, therefore, notwhether Bangladeshis migrate, instead, how theysurvive in a foreign country <strong>and</strong> develop differentstrategies to improve their fortunes. Bearing thisquestion in mind an intensive ethno-survey wasconducted both in Bangladesh (country <strong>of</strong> origin)<strong>and</strong> Malaysia (country <strong>of</strong> residence) 1 . These migrantsare found as the heterogeneous groups <strong>of</strong>people, embedded in the diverse realities <strong>and</strong> liabilities<strong>of</strong> the origin <strong>and</strong> host societies 2 .Therefore, in this study, the readers maycome across their non-homogeneous interests <strong>and</strong>1 Sultana, N. 2008. The Bangladeshi Diaspora in Malaysia. OrganizationalStructure, Survival Strategies <strong>and</strong> Networks, ZEF DevelopmentStudies. LIT: Berlin2 Research for this study was carried out through the financial assistance<strong>of</strong> DAAD (German Academic Exchange Service). Field researchin Malaysia <strong>and</strong> Bangladesh was conducted among the immigrants<strong>and</strong> their families from June 2005 till August 2006. Fieldresearch data are derived from an interview-survey among 150current Bangladeshi migrants in Malaysia <strong>and</strong> intensive ethnographicfieldwork in Bangladesh <strong>and</strong> Malaysia. Along with 165 semistructuredinterviews (with returned <strong>and</strong> current migrants), somegroup discussions were arranged with returned migrants, their families,friends <strong>and</strong> neighbourhoods as well as with a N.G.O (establishedby well-<strong>of</strong>f repatriated migrants). Sources <strong>of</strong> secondary datawere literature reviews, newspaper articles, published <strong>and</strong> unpublishedreports <strong>and</strong> conference papers.concomitant coping strategies. There (in the receivingsociety) networking is an asset. Our analysishas moreover evidenced that depending ontheir dem<strong>and</strong>s firstly <strong>of</strong> adaptation (to cope <strong>and</strong>survive in a foreign country) <strong>and</strong> secondly <strong>of</strong>upward mobility both strong <strong>and</strong> weak ties havebeen developed along the lines <strong>of</strong> horizontal <strong>and</strong>vertical networking. These networking are formulated(by the migrants) on the basis <strong>of</strong> the diverseeveryday realities they face through their“mixed embeddedness” 3 . Regarding this, both thesocio-economic, political <strong>and</strong> institutional structures<strong>of</strong> the origin <strong>and</strong> receiving countries as wellas migrants’ socio-economic statuses, transnationalcontacts <strong>and</strong> duties are found as the regulators.Thus, along with bonds <strong>of</strong> strong <strong>and</strong> weakties different types <strong>of</strong> alliances <strong>and</strong> cleavages aredeveloped by the well-<strong>of</strong>f <strong>and</strong> poor migrants inthe horizontal level. Consequently, instead <strong>of</strong>homogeneity, heterogeneity <strong>and</strong> diversity are thecommon criteria for the Bangladeshi Diaspora inMalaysia.However, apart from these primordial types<strong>of</strong> networking, a kind <strong>of</strong> inter-ethnic strong (in-3 Robert Kloosterman, Joanne van der Leun <strong>and</strong> Jan Rath. 1999.Mixed Embeddedness: (In) formal <strong>Economic</strong> Activities <strong>and</strong> ImmigrantBusinesses in the Netherl<strong>and</strong>s, p. 2.6


SULTANA NAYEEM, University <strong>of</strong> Dhakater-ethnic friendship, marital <strong>and</strong> other kinds <strong>of</strong>intimate relationships) <strong>and</strong> weak ties (commercialnetworking like partnership in business etc.) werealso found as the outcome <strong>of</strong> the migrants’ embeddednessin the receiving society, with whichafter all they had to cope with.The question is which <strong>of</strong> these characteristicsare prominent, how do they contribute to theorganizational structure <strong>of</strong> the community <strong>and</strong> inwhat context does that happen? Therefore, in thenext sections at first we will define how strong<strong>and</strong> weak ties are operationalized. Later on, Granovetter’s(1973, 1983, <strong>and</strong> 1985) conception <strong>of</strong>“strong” <strong>and</strong> “weak ties” <strong>and</strong> the concomitantstrength <strong>of</strong> weak ties (posited by him) will beanalyzed testing against the data <strong>of</strong> this study 4 .This type <strong>of</strong> comparison is important on theground that the formulation <strong>of</strong> different forms <strong>of</strong>networking, like friendship (for adaptation) ordistant relationships (for survival in the host society),were defined by the migrants as a mustthat may bear a resemblance to his (Granovetter)point <strong>of</strong> view. This study will continue discussionhighlighting the following aspects: methodology;operational definitions <strong>of</strong> strong <strong>and</strong> weak ties;revisiting Granovetter’s conception on strong <strong>and</strong>weak ties.Methodology. A brief overview <strong>of</strong> thesources <strong>of</strong> data <strong>and</strong> the methods that were appliedto collect data is important to support the arguments<strong>of</strong> this study. Field research in Malaysia<strong>and</strong> Bangladesh was conducted among the immigrants<strong>and</strong> their families from June 2005 till August2006. Field research data are derived froman interview-survey among 150 current Bangladeshimigrants in Peninsular Malaysia <strong>and</strong> intensiveethnographic fieldwork (with returned <strong>and</strong>current migrants) in Bangladesh <strong>and</strong> PeninsularMalaysia.Applying snowball sampling (somethingusually applied to find hidden population) Bangladeshirespondents were selected. In fact, neitherthe immigration department <strong>of</strong> the host countrynor the emigration authorities <strong>of</strong> the homecountry had any concrete information about Bangladeshimigrants. Likewise, the central statisticsbureau, the local police as well as the Bangladesh4 Mark S. Granovetter. 1973. The Strength <strong>of</strong> Weak Ties. AJS volume78, Number 6 <strong>and</strong> Mark S. Granovetter. 1983. The Strength <strong>of</strong>Weak Ties: A Network Theory Revisited. <strong>Socio</strong>logical Theory,volume 1. See also Mark Granovetter. 1985. The University <strong>of</strong>Chicago. <strong>Economic</strong> Action <strong>and</strong> Social Structure: The Problem <strong>of</strong>Embeddedness. AJS Volume 91 Number 3, p. 481-510.High Commission in Malaysia failed to provideany data about the “hotspots” <strong>of</strong> Bangladeshi migrantsor their statistical figure in Malaysia. Onthe contrary, each <strong>of</strong> them spoke <strong>of</strong> the migrants’essentially mobile character. They also emphasizedthat Bangladeshi migrants used to stay <strong>and</strong>work there as undocumented workers <strong>and</strong> even,some <strong>of</strong> them could be found as husb<strong>and</strong>s <strong>of</strong> Malaysians.Consequently, some open-ended questionswere added in the survey questionnaires thatprovided information about the nature <strong>of</strong> theirintegration, embeddedness in local society <strong>and</strong>coping strategies.Besides, utilizing the networks <strong>of</strong> the respondentsselected for interview-survey, intervieweeswere selected for more intensive interviews.These in-depth interviews were conducted to seewhether or not the best solution was taken byBangladeshi migrants to deal with their multidimensionalembeddedness. Data, collected inthat way, revealed that social networks, developedalong the lines <strong>of</strong> horizontal <strong>and</strong> verticalnetworking, supported the migrants bearing theirsocio-cultural <strong>and</strong> psychological responsibilitiesin the transnational hubs. The said networks,moreover, decreased their costs <strong>of</strong> migration.Operational definitions <strong>of</strong> strong <strong>and</strong>weak ties. Trust is a common factor in close socialnetworks. Unless an extreme situation(struggle for a scarce resource, e.g. an opportunity<strong>of</strong> migration to a foreign country) arrives, respectivefellow feelings, duties <strong>and</strong> moral obligationsremain intact within these strong ties thatmay echo the examples <strong>of</strong> the Chinese Gunaximodel as portrayed in Hammond’s work 5 . Referringto the work <strong>of</strong> Gao <strong>and</strong> Ting Toomey (1998)he has argued that the unconditional sharing <strong>of</strong>information (even secret) within the insider networks,is the main function <strong>of</strong> the Gunaxi relationship.In these relationships members are consideredhighly trustworthy <strong>and</strong> they are obliged tomaintain that honor. According to him, within theinsider networks relationships are perceived asfamily or like a family that cannot be altered exceptunder extreme conditions. However, it isnow known to us from the previous section’s discussionthat with the exception <strong>of</strong> friends (thatmeans fictive ties) most <strong>of</strong> the actors <strong>of</strong> strongties always remain intimate since they possesscommon goals as each other’s consanguine <strong>and</strong>affine.5 Scott et al. (2004)7


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012For weak ties, the opposite situation is supposedto be normal, since this relationship is developedto mitigate different kinds <strong>of</strong> supply <strong>and</strong>dem<strong>and</strong>. Since their (migrants’) close networksfail to fulfill their necessities (because <strong>of</strong> limitedcapabilities), they develop weak ties. For example,managing a way <strong>of</strong> migration or finding alternativesources <strong>of</strong> income etc. are fulfilled bydeveloping weak ties. The actors <strong>of</strong> weak ties arenot closely related to each other <strong>and</strong> hence do notmeet frequently. In the same way, these peopleare not morally bound to assist each other, unlesstheir service is purchased by the clients. Thoughthe relationship is also developed instrumentalizingnational brotherhood, but it mainly worksdepending on commercial exchange, instead <strong>of</strong>relying only on moral obligations (that can beseen in strong ties).Due to mutual dem<strong>and</strong> for upward mobilitywell-<strong>of</strong>f brokers support their clients (after extractingservice charges from them) as parts <strong>of</strong>their manpower business; while on the otherh<strong>and</strong>, in order to find ways <strong>of</strong> migration or higherincome mobility, poor migrants develop relationshipswith them. Better-<strong>of</strong>f businessmen cumbrokers depend on poor migrants to make a pr<strong>of</strong>itvia manpower <strong>and</strong> “hundy” business. They (thepoor migrants) are also the buyers <strong>of</strong> Bangladeshigoods <strong>and</strong> food stuffs from these entrepreneurs’enterprises, which operate in the study areas.Hence the actors <strong>of</strong> weak ties know that these tiesare secondary (derivative/unoriginal) in nature<strong>and</strong> are essentially a tool for upward mobility.Accordingly it delineates that within the weakties - all the actors cannot belong to the same socio-economicposition <strong>and</strong> are not the possessors<strong>of</strong> equal capabilities (as well).As a matter <strong>of</strong> fact, if they all held equalpower, information <strong>and</strong> capabilities to comm<strong>and</strong>any act, then none <strong>of</strong> them would waste money<strong>and</strong> time on these then essentially useless theirweak ties. Rather, as a rational human being, theywould find their own way depending solely ontheir strong ties. As an opposite form <strong>of</strong> relationshipthe strong ties on the other h<strong>and</strong>, are informal<strong>and</strong> primary (fundamental/original) in nature.They become parts <strong>of</strong> their close social networksnaturally, owing to their embeddedness in kinship(blood related <strong>and</strong> marital kin) <strong>and</strong> friendshipcircles. So, these are the strong <strong>and</strong> weak tiesituations in the study areas <strong>of</strong> Peninsular Malaysia.Nevertheless, to make clear how strong <strong>and</strong>weak ties are operationalized in this research,discussion on the following variables are incorporatedto extract ideas about the roles <strong>and</strong> modes<strong>of</strong> networking as a potential survival strategy.The variables <strong>and</strong> values are:Frequency - the following questions wereasked to find out how <strong>of</strong>ten actors <strong>of</strong> a networkmeet or get chances for interpersonal interaction:With whom are you living here? With whomare you working here? Do you have any fixedplace or area for community get together? Whereis this meeting place? When do you usually meet?How do you pass your leisure time? Normallywhere do you meet your inter-ethnic friends?Concerning these queries the following tableis constructed:Ethnic (61.3%)HousemateAlone (6.7%)Ethnic<strong>and</strong> inter-ethnic(32%)Co-workersEthnicAnd inter-ethnic(94.6%)Not fixed(5.3%)Source: Survey data in Peninsular Malaysia.Table 1 – Frequency <strong>of</strong> NetworksFixedplace forcommunityget togetherYes(97.3%)No(2.7%)WithinNeighbor-hood1-Enjoyingmovies athome (9.3%)2-Gossiping inlocal restaurant(12%)3-Visiting localfriends (10%)Passingleisure timeOutside1-Visiting Kotaraya(23.3%)2-Going to pub 12.7%)3-Attending religious,political meetings <strong>and</strong>community get together(32.6%)Get togetherwith inter-ethnicfriends1-Housemates(18%)2-Workmates(48.7%)3-Mosjid <strong>and</strong>restaurant(15.3%)4-Neighbour(18%)8


SULTANA NAYEEM, University <strong>of</strong> DhakaTable 1 denotes that apart from maintainingnetworks with their housemates, workmates <strong>and</strong>neighbors, Bangladeshis also attend different political<strong>and</strong> religious meetings <strong>and</strong> cultural celebrations.There are certain places for this kind <strong>of</strong>celebration which the migrants (both poor <strong>and</strong>better-<strong>of</strong>f) try to visit. It is found that the better<strong>of</strong>fmigrants become the conveners <strong>of</strong> these cultural<strong>and</strong> politico-religious programs, where poormigrants participate in their free times. They visitKotaraya (‘Bangla Bazaar’) to buy Bangladeshigoods from ethnic enterprises as well as to meetpowerful labor brokers.The data also indicates that the migrants’common living <strong>and</strong> working environment providesthem the opportunity for regular contactwith their ethnic <strong>and</strong> inter-ethnic friends. Thecommon living <strong>and</strong> working niche as well as everydayinteractions enable them to develop friendshipswith each other. In fact, along with thecommon experiences <strong>of</strong> immigration <strong>and</strong> everydaycontacts, they (the Bangladeshis) face moreor less the same realities as neighbors <strong>and</strong> workmates.Besides, they are found to spend their leisurehours together in their common surroundings(apart from visiting distant places <strong>and</strong> weaktie based networks). However, while the locals donot need to face an alien way <strong>of</strong> life (since theyare all insiders there), owing to regular correspondenceeither in local restaurants or at theirhome <strong>and</strong> work places both <strong>of</strong> these groups stillget the chance to construct networks. Bangladeshismeet the locals <strong>of</strong> Muslim belief in localmosque <strong>and</strong> “suraus”. Because <strong>of</strong> the same religiousbackground (Islam) most <strong>of</strong> the Bangladeshimigrants <strong>and</strong> their (Malay, Indian Muslim <strong>and</strong>Indonesians etc.) friends enjoy <strong>and</strong> practice moreor less similar religious festivals <strong>and</strong> rituals.Strength <strong>and</strong> Intensity - To pull out informationon the emotional intensity, reciprocal exchange<strong>and</strong> respective obligations to each othersin the network some questions were asked, suchas:Whom do you consider your friend? How doyou define your friend? Why do you maintainnetworks? How do you manage jobs <strong>and</strong> workpermits? How did you get your dwelling place?Who introduced you to your employer? Where doyou go to acquire a better job <strong>and</strong> other facilities?Do you pay them? Why do you assistpoor/undocumented workers? How did you migrate?How do you send remittance to homecountry? How did you learn Bahasa? How doyou manage to cope here? Why are you livingtogether with others? How did/will you manageto stay longer? Why do you maintain homel<strong>and</strong>contacts? Why did you prefer inter-ethnic marriage?How did you meet your inter-ethnicspouse? How did you manage your business visa?How did you get this property? How did youmanage risks?As a matter <strong>of</strong> fact, friendship ties werefound primarily within people <strong>of</strong> the same socioeconomicbackground. For example, un-skilled<strong>and</strong> semi-skilled workers identified other workersas their friends who <strong>of</strong>ten also were their housemates,neighbors <strong>and</strong> workmates. In the sameway, no pr<strong>of</strong>essional <strong>and</strong> businessman was foundwho considered a semi-skilled <strong>and</strong> un-skilledworker as his or her friend. It is not likely that all<strong>of</strong> the neighbors or co-workers converted eachother’s friend. Nor was national brotherhood consideredas the only factor for friendship. Rather,migrants emphasized those as their friends whomthey could trust in need. According to RanjanMallik (he used to work in a furniture factory <strong>of</strong>Kajang),“My co-workers, likewise Bangladeshiworkers in Kajangjaya, are my friends. We arenot so well-<strong>of</strong>f. We have to send money to ourfamilies. I also have some friends in my hometown. They take care <strong>of</strong> my family. Sometimes Isend gifts for them or try to make phone calls.But I don’t have any girlfriend. I also don’t likethe rich <strong>and</strong> educated Bangladeshis. They behavelike we are not their countrymen. I know theywould not assist me in danger. I don’t know anyfemale workers. It is better to avoid them, becausethey might create extra burdens <strong>and</strong> ourfamilies would not be happy about that.”It can be ascertained (from the above comment)that pr<strong>of</strong>essionals <strong>and</strong> businessmen generallyare not friends with poor income groups. Atthe same time, it also assists us to know whatthey (the poor migrants) expect from theirfriends. Provision <strong>of</strong> trust, certainty, regular correspondence<strong>and</strong> assistance are the qualitiesamong others through which their friendship isdefined. On the basis <strong>of</strong> these moral <strong>and</strong> reciprocalobligations (for each other) they maintainfriendship even with their home-based residues.Transnational networking helps them by allowingthem to maintain contact with their home basedfriends. They (the migrants) are also assured thattheir friends reciprocate their obligations to themigrants by taking care <strong>of</strong> their families. These9


SULTANA NAYEEM, University <strong>of</strong> Dhakaunless he increases his stock <strong>of</strong> informationthrough forming weak ties.The hypothesis <strong>of</strong> the following statisticalanalysis is migrants with weak ties have higherincome mobility than others with strong ties.Some proxies are made to define weak <strong>and</strong> strongties, e.g. respondents were asked how they passedtheir leisure time? Their answers are coded as:Weak tie: visiting ‘Bangla Bazaar’ <strong>of</strong> Kotaraya,going to pubs <strong>and</strong> shopping centres, attendingreligious <strong>and</strong> political discussion <strong>and</strong> communityget togethers.Strong tie: watching movies using satellite(with the housemates), visiting local friends(neighbours) <strong>and</strong> gossiping in a restaurant (local).We have regressed their monthly wage withboth quantitative regressors: job alteration, length<strong>of</strong> stay in years in Malaysia <strong>and</strong> qualitative ordummy regressor: weak or strong tie. ANCOVA(Analysis <strong>of</strong> Covariance) model is as follows:Yi= β1 + β2D2i+ β3X2i+ β4X3i+ ui,where, Y = monthly wage <strong>of</strong> the ith migrant iniRM, X 2= job alteration <strong>of</strong> the ith migrant,iX 3=ilength <strong>of</strong> staying in years <strong>of</strong> the ith migrant, D 2=i1, if the migrant has weak tie; 0, otherwise (ifstrong tie). With ui= error term, β = constant,1β2, β3,β = coefficients <strong>of</strong> dummy, job alteration4<strong>and</strong> length <strong>of</strong> staying respectively. The followingregression results are obtained:∧Y i = −7 .295 + 363.779D2i+ 93.556X2i+ 83. 228X3ise = (250.001) (173.518) (74.742) (19.806)t = (-.029) (2.096) (1.252) (4.202)p-value= (.977) (0.038)* (.213) (0.000)*R 2 = .171, n= 150Where, se means st<strong>and</strong>ard error <strong>of</strong> the estimatedcoefficient, t is t-statistic, p-value is theprobability value, * - indicating p-value is significantat 5% level <strong>of</strong> significance, R 2 is multiplecoefficient <strong>of</strong> determination, i.e. the 17% variationin wages are explained by the regressors <strong>and</strong>n is the sample size.From the above results, it can be concludedthat the dummy variable <strong>and</strong> length <strong>of</strong> stay havestatistically significant relationship with thewage. Duration <strong>of</strong> migrant life in the host countryhas the strong positive effect on wage. Keepingall other variables constant, the average monthlywages <strong>of</strong> migrants with weak ties are higher byabout RM 363.78 than those with strong ties. Ourdata in this study is cross-sectional one whereheteroscedasticity may involve frequently. So, weassume that u is normally distributed with meani22zero <strong>and</strong> variance σ , i.e. u ~ii N(0,σi) . We testby graphical method <strong>and</strong> White’s general heteroscedasticitytest (White, 1980) with the nullhypothesis: H 0 : there is no heteroscedasticity inthe error variance <strong>and</strong> found H 0 may be rejected.4000300020001000-1000-2000020 40 60 80 100 120 140Residual Actual FittedFigure 1 – Plotting residual to check heteroscedasticyFrom the above figure, it is depicted that theresidual term <strong>of</strong> the fitted regression showingheteroscedasticity for different values <strong>of</strong> the regressors.The variances <strong>of</strong> the error (according tothe black line <strong>of</strong> zero value) are fluctuating fordifferent values at different b<strong>and</strong> width.Table 2 – White Heteroskedasticity Test ResultsF-statistic 9.932964 Probability 0.000000Obs*R-squared 38.46709 Probability 0.0000008000600040002000So, this study performed the White heteroscedasticity-consistentvariances <strong>and</strong> st<strong>and</strong>ard errortest for the remedy <strong>of</strong> heteroscedasticity <strong>and</strong>to get robust st<strong>and</strong>ard errors.Table 3 – White Heteroskedasticity-Consistent St<strong>and</strong>ardErrors & CovarianceVariable Coefficient Std. Error t-Statistic Prob.CONST -7.295058 279.9356 -0.026060 0.9792Dummy 363.7786 130.4603 2.788424 0.0060Alteration <strong>of</strong> job 93.55614 82.85140 1.129204 0.2607Length <strong>of</strong> staying 83.22766 33.05351 2.517968 0.0129011


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012From the above results, it is depicted thatst<strong>and</strong>ard errors are changed from the earlier estimatesbut the dummy <strong>and</strong> duration <strong>of</strong> abode inMalaysia remain significant at 5% level <strong>of</strong> significance.So, there is significantly <strong>and</strong> robustlyhigher average wage <strong>of</strong> migrants with weak tiesthan those with strong ties.Our regression result shows that job alterationis insignificant <strong>and</strong> is very much related tothe other realities <strong>of</strong> the study areas (<strong>of</strong> PeninsularMalaysia). It was noticed that migrantschanged their jobs or were forced to quit it notonly for higher earning, but also for other causes.Such as: (1) dismissal from job by the employer,(2) to find a permanent job (though sometimesthe new one is not highly paid), (3) being arrested(as undocumented workers) they lost their job,(4) for security, (5) to prolong their duration <strong>of</strong>stay they change jobs (to bypass law that imposesa restriction on the un-skilled <strong>and</strong> semi-skilledmigrant workers saying that they are not allowedto work for more than ten years), (6) due to sickness(caused by a hard working job), (7) someworkers identified some jobs as “risky” (immigrationpolice might come <strong>and</strong> want to checktheir ‘jalan card’) <strong>and</strong> not preferable (e.g. workingunder sun or in open space, mostly, in theconstruction site) <strong>and</strong> changed jobs etc.However, the above result regarding thecontributions <strong>of</strong> weak ties on the higher incomemobility <strong>of</strong> migrants can also be shown throughthe following line graph:Figure 2 – Contribution <strong>of</strong> Strong <strong>and</strong> Weak Ties for Higher Income MobilityThe line graph depicts that migrants withweak ties have higher income mobility than thosewith strong ties. Though we do not see a smoothline graph, the average monthly income rate nonethelessshows that weak tied groups on averagemanage to stay longer <strong>and</strong> earn RM 6000, whereasfor strong tied groups the highest incomerate is around RM 2000 in their 9th year. The linegraph does not indicate that strong tied networkshelp them to earn this amount. Rather, it isknown to us that documented migrant workers’wages are increased by the factory authority accordingto their level <strong>of</strong> work experience. Theyallow them to work for a maximum <strong>of</strong> 10 years<strong>and</strong> provide them increments on the basis <strong>of</strong> theirwork experiences. As a result, the highest amount<strong>of</strong> income (<strong>of</strong> the strong tie groups) shows thatthey managed to earn this amount in their ninthyear according to the employment act <strong>of</strong> thecountry. After that, concerning strong ties we can12


SULTANA NAYEEM, University <strong>of</strong> Dhakasee a decreasing rate <strong>of</strong> earning until their 11 year<strong>of</strong> stay. In their 12th <strong>and</strong> 13 years they slightlyincreased their slim earnings, but in the end werenot successful at this. They even failed to reachtheir previous rate <strong>of</strong> income (RM 2000), thoughthey had stayed in Malaysia for more than 10years. Or in other words, their length <strong>of</strong> stay didnot assist the strong tied groups to earn more.Though they had stayed more than 10 years, theyhad restricted themselves to their own (ethnical)domain. Limited capabilities <strong>and</strong> information(which in any case they already possessed) failedto show them paths for higher income mobility.On the contrary, regarding weak ties thoughwe notice a lower income rate at the very beginning,it finally helps the migrants to reach theirpeak. Migrants who migrated depending only onweak ties (commercial labour brokers) could notadapt to the foreign environment in the beginning.As they lacked the strong ties, necessary tocope (with foreign customs, language, ways <strong>of</strong>working etc.) with their immigrant life, theyfailed to earn more. But after staying a while theygradually achieved local knowledge on “what todo, where to go” <strong>and</strong> also managed to developnew networks, necessary for upward mobility.These new ties not only provided them with theopportunities for higher income mobility, butalso incorporated risks. Therefore, the decreasingrates <strong>of</strong> income <strong>of</strong> the followers <strong>of</strong> weak ties canbe explained highlighting risks. It is found that inthe host society migrants encounter differenttypes <strong>of</strong> risks ranging from intra-ethnic tension tointer-ethnic conflict. For example, while some <strong>of</strong>the poor migrants identify their weak ties or patronsas exploiters, they also express their fears <strong>of</strong>Tamil Indians. However, to overcome thesedrawbacks they need to find another weak tie (awell-connected person both with the local powerstructure <strong>and</strong> other well-<strong>of</strong>f countrymen). Theytry to find a better one who likewise possessesthe necessary capabilities, links (networks) <strong>and</strong>who is also knowledgeable in combating risks.To find a “risk free” & better strategy they formnew weak ties so they can stay longer in thestudy areas <strong>and</strong> also manage opportunities forhigher income mobility. Though they considerweak ties as commercial <strong>and</strong> exploitative, theystill do not prefer to depend only on their trustworthystrong ties. Their strong ties representtheir own workmates, housemates as well as relatives(who possess more or less same level <strong>of</strong>information <strong>and</strong> networks that they themselvesalready have). Having failed to find a suitable jobat home, they migrate to Malaysia to make theirfortunes (within a short time frame). They alsowant to earn more for a “better future”. Theyknow, if they fail to earn enough money, theywill be unable to maintain their expenditures bothat home <strong>and</strong> abroad. As a result, even thoughthey consider their weak ties exploitative theydepend on them unless better ones are found.Through criticizing them they feel psychologicalrelief. They also express their expectations towardswell-<strong>of</strong>f countrymen. For example, “He isrich, but very polite! Not like others.” This singlesentence denotes how through discursive practicesmigrants are expressing their experiences <strong>and</strong>expectations towards well-<strong>of</strong>f people. Accordingto Moerman (1988),“In every moment <strong>of</strong> talk, people are experiencing<strong>and</strong> producing their cultures, their roles,their personalities.”However, though weak ties are identified asexploitative, the line graph nevertheless showsthat respondents with weak ties have higher incomemobility than those with strong ties. At thesame time, it also demonstrates that the Bangladeshimigrants <strong>of</strong> the study areas do not restrictthemselves only to their close social networks;rather they develop distant networks for highersocial mobility. Thus the migrants <strong>of</strong> a certainarea remain connected with other migrants fromdifferent parts <strong>of</strong> the host society. They thus getopportunities to construct interpersonal networksthrough weak ties, because most <strong>of</strong> the less privilegedmigrants visit either ‘Noakhali’ group or‘Barishal’ group for their higher social mobility.Through their transnational business activities,the better-<strong>of</strong>f merchants assist poor migrants sothat they can maintain transnational networkswith their kith <strong>and</strong> kin.Conclusion. Through this study, we havecome to notice a dilemma concerning migrants’perceptions on weak ties <strong>and</strong> their actual behavior.On the one h<strong>and</strong>, most <strong>of</strong> the poor migrantsperceive their intra-ethnic weak ties as exploitative<strong>and</strong> they depend on them for higher incomemobility <strong>and</strong> for long term settlement in the receivingcountry. In fact, their strong tied networksare noticed as poor <strong>and</strong> less connectedwith the macro level authorities. Hence they lackthe necessary power <strong>and</strong> information, requiredfor upward mobility. Therefore, they need to dependon weakly tied networks in order to overcomeeconomic insolvency <strong>and</strong> achieve higher13


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012social status <strong>and</strong> prestige both in the origin <strong>and</strong>receiving countries. The well-<strong>of</strong>f businessmencum manpower agents, who make up the weakties <strong>of</strong> these poor migrants, also try to continuethe relationship because <strong>of</strong> their business interests.Along with kinship based strong ties, it alsoincorporates weak ties, where pr<strong>of</strong>it maximization,conflicting interests etc. are major concerns.Or in other words, though the ideal socio-culturalmodel emphasizes community cohesion (somethingthat can be conceptualized as an example <strong>of</strong>a tightly structured social system), the actual behavior<strong>of</strong> the migrants indicates a loosely or disintegratedsocial system. On the contrary, thewell-<strong>of</strong>f pr<strong>of</strong>essionals <strong>and</strong> pr<strong>of</strong>essionals cummerchants mainly depend on trust based strongties, since these networks possess enough information<strong>and</strong> contacts required for upward mobility.Micro level individual’s life is thus connectedwith the macro level authorities, while the migrant’sembeddedness in the ongoing social relations<strong>and</strong> power structures regulates the nature<strong>and</strong> strength <strong>of</strong> these ties.REFERENCESGao, G. <strong>and</strong> Ting-Toomey, S. 1998. CommunicatingEffectively with the Chinese.Thous<strong>and</strong> Oaks, CA: Sage.Granovetter, Mark S. 1973. The Strength <strong>of</strong>Weak Ties. The American <strong>Journal</strong> <strong>of</strong> <strong>Socio</strong>logy,Volume 78, No. 6, 1361-1380.Granovetter, Mark S. 1983. The Strength <strong>of</strong>Weak Ties: A Network Theory Revisited.<strong>Socio</strong>logical Theory, Volume 1, 201-233.Granovetter, Mark S. 1985. <strong>Economic</strong> Action<strong>and</strong> Social Structure: The Problem <strong>of</strong> Embeddedness.The American <strong>Journal</strong> <strong>of</strong> <strong>Socio</strong>logy,Volume 91, No. 3, 481-510.Kloosterman, Robert, Joanne van der Leun <strong>and</strong>Jan Rath. 1999. Mixed Embeddedness:(In) formal <strong>Economic</strong> Activities <strong>and</strong> ImmigrantBusinesses in the Netherl<strong>and</strong>s. International<strong>Journal</strong> <strong>of</strong> Urban <strong>and</strong> RegionalResearch, Volume 23, No. 2, 253-267.Michael Moerman. 1988. University <strong>of</strong> PennsylvaniaPress. Talking Culture. Ethnography<strong>and</strong> Conversation Analysis, p. prefacexi.Scott C. Hammond & Lowell M. Glenn. E:2004. The Ancient Practice <strong>of</strong> ChineseSocial Networking: Gunaxi <strong>and</strong> SocialNetwork Theory, Vol. 6 Nos. 1, p. 24-31.Sultana, Nayeem. 2010. The Solutions <strong>of</strong> the‘Trans-migrants’ Dilemma. The BangladeshiDiaspora in Malaysia. Dhaka University<strong>Journal</strong> <strong>of</strong> Development Studies,1(1): 181-192. Dhaka University <strong>Journal</strong><strong>of</strong> Development Studies, 1(1): 181-192.Sultana, Nayeem. 2010. Re-visiting theStrength <strong>of</strong> Weak Ties: Bangladeshi Migrationto Malaysia. <strong>Journal</strong> <strong>of</strong> DiasporaStudies, 3(2): 115-142.White, H. 1980. A Heteroscedasticity ConsistentCovariance Matrix Estimator <strong>and</strong> aDirect Test <strong>of</strong> Heteroscedasticity. Econometrica,Volume.48, 817-818.14


S.B. Mustapha, P.M. Bzugu, I.M. Ali, A. Abdullahi, University <strong>of</strong> MaiduguriDETERMINANTS OF ADAPTATION TO DEFORESTATION AMONG FARMERSIN MADAGALI LOCAL GOVERNMENT AREA OF ADAMAWA STATE, NIGERIAABSTRACTS.B. Mustapha, P.M. Bzugu, I.M. Ali, A. Abdullahi, ResearchersUniversity <strong>of</strong> Maiduguri, NigeriaPhone: +2347060573884, E-mail: shettimabulama@yahoo.comReceived August 9, 2012The study examined the determinants <strong>of</strong> adaptation to deforestation among farmers in Madagali LocalGovernment Area <strong>of</strong> Adamawa state, Nigeria. Structured interview schedule were used to obtain informationfrom 200 respondents selected through simple r<strong>and</strong>om sampling techniques. The data collectedwere analyzed using descriptive (frequencies <strong>and</strong> percentages) <strong>and</strong> inferential (chi – squaretest) statistics. The result indicated that majority (84%) <strong>of</strong> the respondents were male with 21-40 years<strong>of</strong> age representing 58.50%. The study also showed that most (45%) <strong>of</strong> the respondents had attainedpost primary education with majority (80%) having 6 <strong>and</strong> above years <strong>of</strong> farming experience. The respondentsperceived fuel wood extraction as the major (42%) cause <strong>of</strong> deforestation in the study area.The result showed that the most (30.50%) frequently employed adaptation strategy against deforestationwas reducing quantity <strong>of</strong> fire wood consumption. The study further showed that the factors whichsignificantly influenced adaptation to deforestation among the respondents were age, farming experience<strong>and</strong> educational status with X 2 =9.216, 8.697 <strong>and</strong> 11.238 at P


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012consciousness about environment <strong>and</strong> its conservation[5]. Adaptation in this regard, is the evolutionaryprocess whereby population becomes bettersuited to its habitats. In other words, adaptationis learning to cope with the impacts <strong>of</strong> climatechange (deforestation) as reported by [6].Tropical deforestation plays a central role inmany <strong>of</strong> the most acute environmental threats,including global climate change, habitat degradation<strong>and</strong> unprecedented species extinction. Scientific<strong>and</strong> public concerns about these <strong>and</strong> otherpotentially massive ecological disruptions haveincited a frowning number <strong>of</strong> studies that aims toquantify adaptation to deforestation processamong farmers. Therefore, this study sought toassess adaptation to deforestation among farmersin Madagali Local Government Area <strong>of</strong> Adamawastate.Statement <strong>of</strong> the problem. In Nigeria, thegreatest problem facing human existence hasbeen deforestation <strong>and</strong> environmental degradation.As a result <strong>of</strong> deforestation, trees have undergonesubstantial deterioration, particularly inthe northern part <strong>of</strong> Nigeria. The vegetation <strong>of</strong>Adamawa State is a characteristic <strong>of</strong> habitat thathas been altered due to human interference withits previous natural climate formulation. The cultivation,grazing activity, cutting <strong>of</strong> trees for firewood <strong>and</strong> other purposes have a demonstratableeffect on the livelihoods <strong>of</strong> the farming communities.Some attempts have been made to study theeffects <strong>of</strong> demonstration in Nigeria [9, 10]. Howeverthere has not been any empirical study intothe adaptation <strong>of</strong> deforestation among farmersimplied in the study area. This study was therefore,conducted to provide empirical informationon adaptation to deforestation among farmers inMadagali Local Government Area <strong>of</strong> AdamawaState. The study was carried out to address thefollowing research questions:i. what were the socio economic characteristic<strong>of</strong> the respondents?ii. what were the perceived causes <strong>of</strong> deforestationamong the respondents?iii. what were the adaptation strategies employedagainst deforestation among the respondents?iv. what was the relationship between socioeconomiccharacteristics <strong>of</strong> the respondents <strong>and</strong>their adaptation to deforestation in the studyarea? <strong>and</strong>v. what were the constraints faced by respondentsin adaptation to deforestation in thestudy area?Objective <strong>of</strong> the study. The main objective<strong>of</strong> the study was to assess the adaptation strategiesemployed against deforestation by farmers inMadagali Local Government Area <strong>of</strong> AdamawaState. The specific objectives <strong>of</strong> the study wereto:i. examine the socio-economic characteristic<strong>of</strong> the respondents.ii. identify the perceived causes <strong>of</strong> deforestationby the respondents,iii. determine the adaptation strategies employedagainst deforestation by the respondents,iv. examine the effect <strong>of</strong> socio-economicfactors on adaptation to deforestation by the respondents,<strong>and</strong>v. investigate the constraints faced by respondentsin adaptation to deforestation in thestudy area.METHODOLOGYThe study area. The study was carried outin Madagli Local Government Area (LGA) <strong>of</strong>Adamawa State. Madagali LGA is located betweenlatitudes 10 0 <strong>and</strong> 11 0 <strong>and</strong> longitudes 12 0<strong>and</strong> 15 0 <strong>of</strong> the Greenwich meridian <strong>and</strong> coversapproximately an area <strong>of</strong> 903 km 2 [2]. The areahas an estimated population <strong>of</strong> 134,827 [8]. Thevegetation is made up <strong>of</strong> grasses <strong>and</strong> somestunted trees in some parts <strong>of</strong> the area. The rainfalllasts for about 4-5months in a year with anaverage rainfall <strong>of</strong> 700-1000 mm per annum [2].The dry season begins in November <strong>and</strong> terminatesin early June <strong>of</strong> the following year. Farmingis the principal economy <strong>of</strong> the people in thearea. The climate <strong>and</strong> the rich alluvial soil <strong>of</strong> thearea favours the cultivation <strong>of</strong> food crops such assorghum, millet, maize, rice <strong>and</strong> cassava. It als<strong>of</strong>avours the production <strong>of</strong> local cash crops such ascowpea, groundnuts, sesame <strong>and</strong> sugar cane on alarge scale basis. Livestock production is alsovery important in the study area <strong>and</strong> is one <strong>of</strong> thelargest concentrations <strong>of</strong> cattle in Adamawa state.Fishing is a common practice among those livingaround riverbank areas.16


S.B. Mustapha, P.M. Bzugu, I.M. Ali, A. Abdullahi, University <strong>of</strong> MaiduguriSources <strong>of</strong> data. Primary data was mainlyused for the study. These were generated fromfarming households head through the use <strong>of</strong>structured <strong>and</strong> protested interview schedules. Theinterviews were conducted by enumerators fromBorno State <strong>Agricultural</strong> Development Programme(BOSADP) who were trained for thepurpose. Secondly, information from Areas ExtensionOfficers (AEOS) <strong>of</strong> BOSADP <strong>and</strong> AreaForestry Officers (AFOS) <strong>of</strong> the ministry <strong>of</strong> environmentwere used to complement the primarydata. Other sources <strong>of</strong> secondary information includes,textbooks, journals <strong>and</strong> other write up thatwere relevant to the study.Sampling procedure <strong>and</strong> techniques <strong>of</strong>data analysis. Simple r<strong>and</strong>om sampling techniqueswere employed to select the respondents<strong>of</strong> the study. To ensure effective coverage <strong>of</strong> thestudy area, respondents were r<strong>and</strong>omly selectedfrom each <strong>of</strong> the districts that contituuted thestudy area (Duhu, Gulak, Kirchinga, Madagali<strong>and</strong> Sukur). Five villages were chosen r<strong>and</strong>omlyfrom each district because <strong>of</strong> the fair distribution<strong>of</strong> villages among the districts, making a total <strong>of</strong>25 villages selected from the districts. Eight respondentswere selected at r<strong>and</strong>om from each <strong>of</strong>the selected 25 villages making a total <strong>of</strong> 200respondents as the sample size <strong>of</strong> the study. Thedata were analyzed using descriptive (frequencydistribution <strong>and</strong> percentages) <strong>and</strong> inferential (chisquaretest) statistics. The frequency distribution<strong>and</strong> percentages were used to achieve specificobjectives (i), (ii), (iii) <strong>and</strong> (v). While the chisquaretest was used to achieve objective (iv).The chi-square statistics was used as expressedbelow:X 2 = [(0i-Ei) 2 (Ei) -1 ],where X 2 = chi-square statistic; Oi = observe value<strong>of</strong> variable; Ei = expected value <strong>of</strong> variable; = summation sign. The variable used as determinantsin the study were: Gender (GD) = 1 if male,0 otherwise; Age (AG) = 1 if < 40 years, 0 otherwise;Marital status (MS) = 1 if married, 0 otherwise;Farming experience (FE) = 1 > if 6years,0 otherwise; Educational status (ES) = 1 if >WAEC/SSCE/TC 0 otherwise; Household size(HS) = 1 if up to >6 in number, 0 otherwise;Access to agricultural credit (AC) = 1 if acquiredcredit, 0 otherwise; Access to extension services(AE) = 1 if had contact with extension agents, 0otherwise; Access to mass media (am) = 1 if hadaccess to mass media, 0 otherwise.RESULTS AND DISCUSSION<strong>Socio</strong>-economic characteristics <strong>of</strong> respondents.The distribution <strong>of</strong> respondents by socioeconomiccharacteristics is presented in Table 1.The socio-economic variables studied includegender, age, marital status, farming experience,educational status, household size <strong>and</strong> extensioncontact <strong>of</strong> the respondents. Table 1 shows thatmajority (84%) <strong>of</strong> the respondents were male,while female constitutes only 16% in the studyarea. This implies that gender is a significant factorin agriculture because <strong>of</strong> its vital role in determiningfarming activities in the study area.This could also influence the adaptive capacity todeforestation. In addition, majority (85%) <strong>of</strong> therespondents were married <strong>and</strong> were in their active<strong>and</strong> economically productive age (21-40 years)representing 58.50%, therefore labour dem<strong>and</strong>ingstrategies could also be employed.On the level <strong>of</strong> education, the result showsin Table 1 that most (45%) <strong>of</strong> the respondentshad attained post primary education. This impliesthat the respondents could apprehend the techniques<strong>of</strong> adaptation strategies against deforestation.The result also shows that majority (80%) <strong>of</strong>the respondents had 6 years <strong>and</strong> above farmingexperience. The implication could be that theyemploy adaptation strategies against deforestationout <strong>of</strong> their experience. Table 1 indicatedthat majority (81%) <strong>of</strong> the respondents hadhousehold size <strong>of</strong> 6 in number <strong>and</strong> above, whileonly 19% <strong>of</strong> the respondents had less than 6 innumber. This implies that adaptation strategiesthat dem<strong>and</strong>s more h<strong>and</strong>s/labour could be met bythe respondents. The study, also indicates thatmost (44%) <strong>of</strong> the respondents had no contactwith extension agents over the year. However,38% attested that they had 1-3 contacts with extensionagents per annum. The study implies thatthere was low level <strong>of</strong> extension services whichaffects the awareness <strong>and</strong> use <strong>of</strong> adaptation strategiesagainst deforestation in the study area.17


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012GenderAge (years)Table 1 − Distribution <strong>of</strong> respondents by socio-economic characteristics (N=200)<strong>Socio</strong>-economic variable Frequency (No.) Percentage (%)Male 168 84.00Female 32 16.0020 <strong>and</strong> below 42 21.0021-30 55 27.5031-40 62 31.0041 <strong>and</strong> above 41 20.50Marital StatusMarried 171 85.50Single 29 14.50Farming experience(years)Less than 6 40 20.006-10 57 28.0011-15 63 31.5016 <strong>and</strong> above 40 20.00Educational statusIlliterate 19 09.50Quranic education 23 11.50Primary education 68 34.00WAEC/SSCE/TC 70 35.00Tertiary education 20 10.00Household size (number)Less than 6 38 19.006-10 72 36.0011-15 65 32.5016 <strong>and</strong> above 25 12.00Extension contact (per year)No contact 88 44.001-3 76 38.004-6 30 15.007 <strong>and</strong> above 06 03.00Source: Field survey, 2010.Perceived causes <strong>of</strong> deforestation by respondents.Table 2 shows the perception <strong>of</strong> respondentson the causes <strong>of</strong> deforestation in thearea. The study reveals that most (42%) <strong>of</strong> therespondents perceived fuel wood extraction asthe major cause <strong>of</strong> deforestation. This was closelyfollowed by farming activities (27.50%) <strong>and</strong>bush burning (12.50%). While, the least perceivedcause <strong>of</strong> deforestation was road/buildingconstruction with only 4% <strong>of</strong> the respondentsattesting to it. The study shows that the rootSource: Field survey, 2010.cause <strong>of</strong> deforestation was among the rural communitiesas perceived by the respondents. Theimplication could be that adaptation strategiesagainst deforestation that could be targeted towardsfarming communities might effectivelyyield the desired result with the support <strong>of</strong> extensionservices. This was because, the deforestationwas perceived to cause by human activities ratherthan natural as only 6% <strong>of</strong> the respondentsclaimed that deforestation is caused by drought.Table 2 − Respondents perception on causes <strong>of</strong> deforestation (N=200)Causes Frequency (No.) Percentage (%)Farming activities 55 27.50Fuelwood extraction 85 42.50Bush burning 25 12.50Road/building construction 8 04.00Overgrazing 15 07.50Drought 12 06.0018


S.B. Mustapha, P.M. Bzugu, I.M. Ali, A. Abdullahi, University <strong>of</strong> MaiduguriAdaptation Strategies employed by respondents.Table 3 indicated the adaptation strategiesemployed against deforestation by respondents.The result shows that the most (30.50%)frequently employed adaptation strategy againstdeforestation was reducing quantity <strong>of</strong> firewoodconsumption among the respondents. This wasfollowed by the practice <strong>of</strong> zero tillage (23%) inthe study area. While, the least employed adaptationstrategy was the use <strong>of</strong> fuel efficient woodstoves (3.50%), which was closely followed bythe use <strong>of</strong> alternative energy (kerosene),represented by 5% <strong>of</strong> the respondents. The studyimplies that the respondents might be ready touse alternative sources <strong>of</strong> energy if given the opportunity(availability <strong>and</strong> affordability), thiscould be attributed to the impact <strong>of</strong> deforestationin the study area.Table 3 − Distribution <strong>of</strong> respondents by adaptation strategies employed against deforestation (N=200)Causes Frequency (No.) Percentage (%)Use <strong>of</strong> fuel efficient wood stoves 07 03.50Protection <strong>of</strong> economic trees 27 13.50Reducing quantity <strong>of</strong> firewood consumption 61 30.50Practice <strong>of</strong> zero tillage 46 23.00Use <strong>of</strong> alternative energy (kerosene) 10 05.00Participation in farm forestry 21 10.00Use <strong>of</strong> cow dung for cooking 16 08.00Use <strong>of</strong> corn straw for cooking 12 06.00Source: Field survey, 2010Determinants <strong>of</strong> adaptation to deforestationamong respondents. The chi-square results<strong>of</strong> the determinants <strong>of</strong> adaptation to deforestationamong respondents were presented in Table 4.The variables studied include gender, age, maritalstatus, farming experience, educational status,household size, access to agricultural credit <strong>and</strong>access to extension services. The result showedthe significant variables which include age, farmingexperience <strong>and</strong> educational status; X 2 =9.216,8.697 <strong>and</strong> 11.238 at P < 0.05 respectively. Theage <strong>of</strong> the farmer affected the farmer’s knowledge<strong>and</strong> the awareness <strong>of</strong> the activities in thesurrounding environment among other farmers.This indicates that the age influences the farmerscapacity to adapt deforestation. The finding supportsthat <strong>of</strong> Krishna [7], that age significantlyinfluence the adaptive capacity <strong>of</strong> farmers againstdeforestation. Farming experience affected thefarmer’s knowledge <strong>and</strong> awareness <strong>of</strong> deforestation<strong>and</strong> its impact in the farming communities.This shows that farming experience influencesthe farmer’s adaptive capacity to deforestation.Also, an educated farmer could readily accessinformation on deforestation <strong>and</strong> how it could beadapted. Formal education could therefore be acritical factor influencing the effectiveness <strong>of</strong>farmer’s adaptive capacity to deforestation; asreported by Oladusu et al [9].Table 4 − Chi-square results <strong>of</strong> the determinants <strong>of</strong> adaptation to deforestation in the study areaCauses Degree <strong>of</strong> freedom Calculated x2 P-value RemarkGender 1 1.286 3.841 SNAge 3 9.216 7.815 SSFarming experience 3 8.697 7.815 SSEducational status 4 11.238 9.488 SSAccess to agricultural credit 4 7.923 9.488 SNAccess to extension service 3 5.862 7.815 SNSource: Field survey, 2010x2 = calculated chi-squareSS = Statistically significant at at P


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012credit services. The implication could be that therespondent’s level <strong>of</strong> adaptation to deforestationcould be affected negatively.Constraints <strong>of</strong> adaptation to deforestationby respondents. The constraints <strong>of</strong> adaptation todeforestation was presented in Table 5.Table 5 − Distribution <strong>of</strong> respondents by constraints adaptation to deforestation (N=200)Causes Frequency (No.) Percentage (%)Lack <strong>of</strong> awareness 37 18.50Lack <strong>of</strong> sufficient labour 25 12.50Lack <strong>of</strong> accessible alternative energy 48 24.00Lack <strong>of</strong> capital 50 25.00Poor extension services 40 20.00Source: Field survey, 2010.The result reveals that lack <strong>of</strong> capital wasasserted by most (25%) <strong>of</strong> the respondents asconstraint to adaptation against deforestation.This could not be unexpected, due to the fact thatmost <strong>of</strong> the farming households in the study areaare peasant farmers with low income earnings.The second most important constraint was lack <strong>of</strong>accessible alternative energy, as asserted by 24%<strong>of</strong> the respondents. This could be due to partly to, as a result <strong>of</strong> the high prices associated withmost <strong>of</strong> the alternative sources <strong>of</strong> energy e.g kerosene,<strong>and</strong> therefore respondents could not affordto use. This implies that the respondents level<strong>of</strong> adaptation against deforestation could beaffected negatively which does not augur well forthe environment <strong>and</strong> the society as well. Otherconstraints faced by the respondents in adaptationto deforestation were poor extension services,lack <strong>of</strong> awareness <strong>and</strong> lack <strong>of</strong> sufficient labourwith 20%, 18.50% <strong>and</strong> 12.50% <strong>of</strong> the respondentsclaiming respectively.REFERENCESAjayi, O.C (2007). User acceptability <strong>of</strong> sustainablesoil facility technologies. Lessonsfrom farmers knowledge, attitudes <strong>and</strong>practices in southern Africa. <strong>Journal</strong> <strong>of</strong>Sustainable Agriculture, vol. 30 (3): 21-40ASMLS (1999). Adamawa State Ministry <strong>of</strong>L<strong>and</strong> <strong>and</strong> Survey (ASMLS), Annual report,Adamawa State, Nigeria.Ayuba, H.K. (2008). Towards combating desertification<strong>and</strong> deforestation in Yobe state,Nigeria. Yobe <strong>Journal</strong> <strong>of</strong> Environment <strong>and</strong>Development, vol. 1, No. 1pp 1-5.FAO (2005). State <strong>of</strong> the World’s Forests.Food <strong>and</strong> Agricultures Organization(FAO) <strong>of</strong> the United Nations, Rome, Italy.FAO (2007). Deforestation: Tropical Forests inDecline. Food <strong>and</strong> Agriculture Organization(FAO) <strong>of</strong> the United Nations, Rome,Italy.Gwary, D.M. (2010). Climate Change Adaptation<strong>and</strong> Migration Options for ImprovingFood Security in Nigeria. Lead paper presentingat the 6th National Cconference inOrganic Agriculture held at the University<strong>of</strong> Maiduguri, Nigeria 22nd – 24th November.Krishna, K. (2004). Effects <strong>of</strong> deforestation ontree diversity <strong>and</strong> livelihoods <strong>of</strong> localcommunity: A case study from Nepal.M.sc. Dissertation, Department <strong>of</strong> plantEcology, Lund university, Sweden.NPC (2006). National Population Commission(NPC); Provisional census figure; Abuja,Nigeria.Oladosu, I.O., Ogunwale, A.B. <strong>and</strong> Ayanwuyi, E.(2002). Farmers perception <strong>of</strong> effects <strong>of</strong>deforestation on agricultural production<strong>and</strong> economic activities in selected ruralcommunities in Orire Local GovernmentArea <strong>of</strong> Oyo State, Nigeria. International<strong>Journal</strong> <strong>of</strong> Business <strong>and</strong> Common MarketStudies vol. 1 (1): 209-216.Oseoneoba, G.J. (1992). Fuelwood exploitationfrom natural ecosystem in Nigeria: <strong>Socio</strong>economic<strong>and</strong> <strong>Socio</strong>logical implication.<strong>Journal</strong> <strong>of</strong> Rural Development, vol. 1 (1):141-155.20


H. DE-GRAFT ACQUAH, University <strong>of</strong> Cape CoastA THRESHOLD COINTEGRATION ANALYSIS OF ASYMMETRIC ADJUSTMENTSIN THE GHANAIAN MAIZE MARKETSABSTRACTHenry de-Graft Acquah, Senior LecturerUniversity <strong>of</strong> Cape Coast, Cape Coast, GhanaPhone: +00233245543956, E-mail: henrydegraftacquah@yahoo.comReceived August 14, 2012This paper analyzes the long-run equilibrium relationship between retail <strong>and</strong> wholesale Ghanaianmaize prices with cointegration test assuming asymmetric adjustment. Using the Enders-Siklos asymmetriccointegration tests, it is found that the retail <strong>and</strong> wholesale prices are cointegrated with thresholdadjustment. Furthermore, the adjustment process is asymmetric when the retail <strong>and</strong> wholesaleprices adjust to achieve the long-term equilibrium. Finally, there is faster convergence for negativedeviations from long-term equilibrium than for positive deviations. These results imply that price increasestend to persist whereas decreases tend to revert quickly towards equilibrium.KEY WORDSThreshold cointegration; Asymmetric adjustment; Price transmission; Maize; Equilibrium relationship;Negative deviations.Cointegration technique has been extensivelyemployed to investigate relationship amongprice variables. The two widely used cointegrationmethods are Johansen <strong>and</strong> Engle-Grangertwo-step approaches. However these methodsassume symmetric relationship between variables.These methods do not test for the possibilitythat the long run relationship may beasymmetric in nature. The technique <strong>of</strong> Enders<strong>and</strong> Siklos (2001) is well suited to the task <strong>of</strong> uncoveringlong-run relationships between timeseries when deviations from the long-run areasymmetric in nature. The technique generalizesthe st<strong>and</strong>ard Dickey–Fuller test by allowing forthe possibility <strong>of</strong> asymmetric movements in timeseriesdata. This makes it possible to test forcointegration without maintaining the hypothesis<strong>of</strong> asymmetric adjustment to a long-term equilibrium.This study is aimed at empirically testingEnders <strong>and</strong> Siklos’s hypothesis <strong>of</strong> asymmetricadjustment to a long-run equilibrium between theGhanaian retail <strong>and</strong> wholesale maize prices. First,this study test for the order <strong>of</strong> integration <strong>of</strong> theprice series. Second the study analyzes asymmetricadjustment using threshold cointegration methodology.Asymmetric price transmission. Empiricalstudies analyzing whether prices rise faster thanthey fall, have categorised the price dynamicsinto symmetric <strong>and</strong> asymmetric processes. Meyer<strong>and</strong> von Cramon-Taubadel (2004) notes thatthose processes for which the transmission differsaccording to whether the prices are increasing ordecreasing (i.e. asymmetric price transmission)are <strong>of</strong> keen interest. By definition, asymmetry isan unreciprocal relationship between rises <strong>and</strong>falls in prices.Price transmission has extensively been studiedin agricultural commodity markets. However,a major limitation <strong>of</strong> some earlier studies(Mohanty, Peterson <strong>and</strong> Kruse, 1995; Boyd <strong>and</strong>Brorsen, 1998) is that they fail to take into accountthe possibility <strong>of</strong> the presence <strong>of</strong> an equilibriumrelationship between any price series beingexamined (von CramonTaubadel, 1998). The firstattempt to draw on cointegration technique intesting for asymmetry in vertical price transmissionis von Cramon-Taubadel <strong>and</strong> Fahlbusch(1994) <strong>and</strong> later elaborated by von Cramon-Taubadel (1998). Numerous price transmissionstudies (Capps <strong>and</strong> Sherwell, 2007)) implementsvon Cramon-Taubadel <strong>and</strong> Loy testing procedurefor asymmetric price transmission or some variants<strong>of</strong> their proposed Error Correction Modeling(ECM) approach.Following the introduction <strong>of</strong> the thresholdtechnique, it is possible to consider an intuitivelyappealing type <strong>of</strong> ECM in which deviation from21


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012the long-run equilibrium between two prices willlead to a price response if they exceed a specificthreshold level. Balke <strong>and</strong> Fombe (1997) pointout that the presence <strong>of</strong> fixed costs <strong>of</strong> adjustmentmay prevent economic agents from adjustingcontinuously. Only when deviation from equilibriumexceeds a critical threshold do the benefits<strong>of</strong> adjustment exceed the costs <strong>and</strong> cause economicagents to act to move the system back towardsthe equilibrium. Due to the above reasons,the threshold models <strong>of</strong> dynamic economic equilibriumhave gained increased attraction in theanalysis <strong>of</strong> price transmission asymmetries. Subsequently,several studies (Esso, 2010; Awokuseet al, 2009; Meyer, 2004;Cook, 2003;Cook,2003; Cook, 2003; Cook et al, 2002; Hansen,2002; Cook, 2000; <strong>and</strong> Balke <strong>and</strong> Fomby, 1997)measuring asymmetric price transmission haveused the threshold modeling approach.METHODOLOGYStationarity test. Kwiatkowski et al. (1992)proposed a LM-test for testing trend <strong>and</strong>/or levelstationarity (henceforth: KPSS-test). They considerthe following model: eq. (1) eq. (2)where is a r<strong>and</strong>om walk <strong>and</strong> the error process isassumed to be i.i.d (0, ). The initial value r 0 isfixed <strong>and</strong> corresponds to the level. If =0, thenthis model is in terms <strong>of</strong> a constant only as deterministicregressors. Under the null hypothesis, is stationary <strong>and</strong> therefore is either trendstationary or in the case <strong>of</strong> =0, level stationary.First, regress on a constant or on a constant<strong>and</strong> a trend depending on whether onewants to test level or trend stationary; second,calculate the partial sums <strong>of</strong> the residuals fromthis regression as: eq. (3)The test statistic is then defined as: !" #$ % eq. (4),with & ' being an estimate <strong>of</strong> the error variancefrom step one. The authors suggest the utilization<strong>of</strong> a Bartlett window w(s, l) =1-s/ (l+1) as anoptimal weighing function to estimate the longrun variance& ' ; that is:& ' ( )*+ , - - ,.// eq. (5)The upper tail critical values <strong>of</strong> the level <strong>and</strong>trend stationary version are given in Kwiatkowskiet al. (1992).Econometric Model. The Engle- Grangertwo- stage approach focuses on the time seriesproperty <strong>of</strong> the residuals from the long run equilibriumrelationship (Engle <strong>and</strong> Granger, 1987).Consider the retail prices <strong>and</strong> 0 thewholesale prices both <strong>of</strong> which are integrated <strong>of</strong>the order one.Let the co integration relationship be: 1 2 0 eq. (6),where measures the deviation from the equilibriumrelationship between 0 <strong>and</strong> . Consistentestimates <strong>of</strong> the equilibrium error can be obtainedusing ordinary least squares method. Forthe two variables to be cointegrated, should bestationary.In order words, rejecting the null hypothesis<strong>of</strong> no co integration, that is 3=0 against acceptingthe alternative hypothesis <strong>of</strong> cointegration, that is-2


H. DE-GRAFT ACQUAH, University <strong>of</strong> Cape CoastWhere 7 is the Heavside indicator, ; thenumber <strong>of</strong> lags, 3 3 <strong>and</strong> the coefficients <strong>and</strong> :the threshold value. The lag ; is specified to accountfor serially correlated residuals <strong>and</strong> it canbe calculated using Bayesian Information Criteria(BIC) or Akaike Information Criteria (AIC).The threshold value :can be specified as zero.Alternatively, Chan (1993) proposes a searchmethod for obtaining a consistent estimate <strong>of</strong> thethreshold value. A super consistent estimate <strong>of</strong>the threshold value can be attained with severalsteps. First, the process involves sorting in ascendingorder the threshold variable, i.e. forthe threshold model. Second, the possible thresholdvalues are determined. If the threshold valueis to be meaningful, the threshold variablemust actually cross the threshold value. Thus, thethreshold value : should lie between the maximum<strong>and</strong> minimum values <strong>of</strong> the threshold variable.In practice, the highest <strong>and</strong> lowest 15% <strong>of</strong>the values are excluded from the search to ensurean adequate number <strong>of</strong> observations on each side.The middle 70% values <strong>of</strong> the sorted thresholdvariable are used as potential threshold values.Third, the threshold model is estimated with eachpotential threshold value. The sum <strong>of</strong> squarederrors for each trial can be calculated <strong>and</strong> the relationshipbetween the sum <strong>of</strong> squared errors <strong>and</strong>the threshold value can be examined. Finally, thethreshold value that minimizes the sum <strong>of</strong>squared errors is deemed to be the consistent estimate<strong>of</strong> the threshold. Against this background,two competing models are considered namely theThreshold model with : = 0 (i.e. TAR) <strong>and</strong> theconsistent threshold model with : estimated.Given the alternative models, model selectionprocedures such as the Akaike Information Criterion(AIC) <strong>and</strong> Bayesian Information Criterion(BIC) provides a basis for choosing between theThreshold Model (TAR) <strong>and</strong> Consistent ThresholdModel (CTAR). A model with the lowestAIC <strong>and</strong> BIC should be preferred.Insights into the asymmetric adjustments inthe context <strong>of</strong> a long run cointegration relationcan be obtained with two tests. First, an F-test isemployed to examine the null hypothesis <strong>of</strong> nocointegration (H 0 : 1 = 2 = 0) against the alternative<strong>of</strong> cointegration with either TAR or ConsistentTAR threshold adjustment. The test statisticis represented by F. This test does not follow ast<strong>and</strong>ard distribution <strong>and</strong> the critical values inEnders <strong>and</strong> Siklos (2001) should be used. Thesecond one is a st<strong>and</strong>ard F-test to evaluate thenull hypothesis <strong>of</strong> symmetric adjustment in thelong-term equilibrium(H 0 : 1 = 2 ). Rejection <strong>of</strong>the null hypothesis indicates the existence <strong>of</strong> anasymmetric adjustment process.Data. This study employs weekly retail <strong>and</strong>wholesale prices for maize from January 1994 toDecember 2003 from Kumasi in the Ashanti Region<strong>of</strong> Ghana. The weekly data for all prices areGhana cedi per 100kg <strong>and</strong> given the high level <strong>of</strong>inflation in the period covered, prices are deflatedusing consumer price index (CPI) deflator. Thedata was obtained from the Ministry <strong>of</strong> Food <strong>and</strong>Agriculture in Ghana.RESULTS AND DISCUSSIONUnit root test. To determine the datageneratingproperties <strong>of</strong> the individual data, theKwiatkowski, Phillips, Schmidt <strong>and</strong> Shin (KPSS)test for stationarity (Kwiatkowski, et al., 1992)was performed. The results <strong>of</strong> the KPSS test inTable 1 show that the retail <strong>and</strong> wholesale pricesare non stationary <strong>and</strong> integrated <strong>of</strong> the order one.n/nWholesale(Levels)Wholesale(FirstDifference)Retail(levels)Retail (FirstDifference)Table 1 – KPSS unit root testTeststatisticsSource: Author’s calculationCritical values10 % 5 % 2.5% 1%0.2755 0.119 0.146 0.176 0.2160.017 0.119 0.146 0.176 0.2160.3839 0.119 0.146 0.176 0.2160.0151 0.119 0.146 0.176 0.216Threshold cointegration analysis. Thenonlinear cointegration analysis is conducted usingthe Threshold Autoregression models. TheTAR <strong>and</strong> Consistent TAR models are estimated<strong>and</strong> the results are reported in Table 2. In selectingan appropriate lag to address possible serialcorrection in the residual series, a maximum lag<strong>of</strong> 12 is specified <strong>and</strong> tried at the beginning. Diagnosticanalyses on the residuals through AIC<strong>and</strong> BIC all reveal that a lag <strong>of</strong> 2 is sufficient. Inestimating the threshold values for consistentTAR, the method by Chan (1993) is followed.The lowest sum <strong>of</strong> squared errors for the consistentTAR model is 1191.69 at the threshold value<strong>of</strong> -2.554. Alternatively, the threshold value for23


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012TAR is set at 0. While the competing thresholdcointegration models have similar results (table2), the consistent TAR model has the lowest AICstatistic <strong>of</strong> 1908 <strong>and</strong> BIC statistic <strong>of</strong> 1930, <strong>and</strong>therefore, is deemed to be the best. Focusing onthe results from the consistent TAR model, thisstudy finds that the F-test for the null hypothesis<strong>of</strong> no cointegration has a statistic <strong>of</strong> 18.371 <strong>and</strong> itis highly significant at the 1% level. Thus, theretail <strong>and</strong> wholesale prices <strong>of</strong> maize in Ghana arecointegrated with threshold adjustment.Table 2 – Estimates <strong>of</strong> the speed <strong>of</strong> adjustments parameters <strong>of</strong> the Threshold Modeln/n Threshold Autoregressive Model (TAR) Consistent Threshold Autoregregressive Model (CTAR)3 -0.12057(-4.517)* -0.11202(-4.5671)*3 -0.14732(-3.948)* -0.19787(-4.327)*3 = 3 17.081(0.000)** 18.371(0.000)**3 = 3 < 0.354(0.550)** 2.779(0.096)** 0 -2.554SSE 1197.313 1191.693AIC 1911 1908BIC 1932 1930Notes: * Values in the parentheses are t values. ** Values in the parentheses are estimated probability values; outside parenthesesare the F statistic values. Source: Author’s calculation.Furthermore, the F statistic for the null hypothesis<strong>of</strong> symmetric price transmission has avalue <strong>of</strong> 2.779 <strong>and</strong> it is also significant at the10% level. Therefore, the adjustment process isasymmetric when the retail <strong>and</strong> wholesale prices<strong>of</strong> Ghanaian maize adjust to achieve the longtermequilibrium.The point estimate for the price adjustmentis -0.11202 for positive shocks <strong>and</strong> -0.19787 fornegative shocks. The point estimate <strong>of</strong> 3 (-0.11202) for the retail <strong>and</strong> wholesale prices indicatesthat approximately 11.2 % <strong>of</strong> a positivedeviation from the long-run equilibrium relationis eliminated within a week. Alternatively, thepoint estimate <strong>of</strong> 3 (-0.19787) indicates that19.8 % <strong>of</strong> a negative deviation from the long-runequilibrium relation is eliminated within a week.In effect, the adjustment is almost 1.7 times fasterfor negative deviations from equilibrium than forpositive deviations. Therefore, there is substantiallyfaster convergence for negative (belowthreshold) deviations from long-term equilibriumthan positive (above threshold) deviations.Model estimation results suggest that theConsistent TAR model detects asymmetry whilstTAR model fails to support this evidence. Theseresults imply that differences in inferences arepossible depending on weather the threshold parameteris estimated from the data or imposed bythe researcher.CONCLUSIONThis study estimated the price transmissionin the Ghanaian maize market using retail <strong>and</strong>wholesale prices. Specifically, the study testedfor the order <strong>of</strong> integration <strong>of</strong> the price series <strong>and</strong>analyzed asymmetric adjustment using thresholdcointegration methodology. The threshold cointegrationtechnique makes it possible to test forcointegration without maintaining the hypothesis<strong>of</strong> a symmetric adjustment to a long-term equilibrium.The results <strong>of</strong> the KPSS test show that theretail <strong>and</strong> wholesale prices are non stationary <strong>and</strong>integrated <strong>of</strong> the order one. The retail <strong>and</strong> wholesaleprices <strong>of</strong> maize in Ghana are cointegratedwith threshold adjustment. The Enders <strong>and</strong> Silkos(2001) procedure provides support for the alternativehypothesis <strong>of</strong> asymmetric adjustment. Thefindings <strong>of</strong> this study indicate that there is a fasterconvergence for negative deviations from longtermequilibrium than positive deviations. Theseresults suggest that price increases tend to persistwhereas decreases tend to revert quickly towardsequilibrium.Furthermore, alternative threshold modelingapproaches leads to differences in conclusion. Itis recommended that CTAR be used togetherwith the TAR <strong>and</strong> the cause <strong>of</strong> the positiveasymmetry identified be investigated.24


H. DE-GRAFT ACQUAH, University <strong>of</strong> Cape CoastREFERENCESAwokuse, T.O. <strong>and</strong> Wang, X. (2009), ThresholdEffects <strong>and</strong> Asymmetric Price Adjustmentsin U.S. Dairy Markets. Canadian<strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>Economic</strong>s.Balke, N.S <strong>and</strong> Fomby, T.B. (1997). ThresholdCointegration. International <strong>Economic</strong>Review, 38, 627-645.Boyd, M.S. <strong>and</strong> Brorsen, B.W. (1998). PriceAsymmetry in the US Pork MarketingChannel, North Central <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong><strong>Economic</strong>s, 10, pp.103-109.Capps, O. <strong>and</strong> Sherwell, P. (2007). AlternativeApproaches in Detecting Asymmetry inFarm-Retail Prices Transmission <strong>of</strong> FluidMilk. <strong>Journal</strong> <strong>of</strong> Agribusiness, 23 (3),313-331.Chan, K.S. (1993). Consistency <strong>and</strong> limitingdistribution <strong>of</strong> the least squares estimator<strong>of</strong> a threshold autoregressive model. TheAnnals <strong>of</strong> Statistic, 21, 520-533.Cook, S. (2000). Frequency domain <strong>and</strong> timeseries properties <strong>of</strong> asymmetric error correctionmodels, Applied <strong>Economic</strong>, 32,pp. 297-307.Cook, S. <strong>and</strong> Holly, S. (2002) Threshold specificationfor asymmetric error correctionmodels, Applied <strong>Economic</strong>s Letters, 9,pp. 711–13.Cook, S. (2003). A sensitivity analysis <strong>of</strong> thresholddetermination for asymmetric errorcorrection models, Applied <strong>Economic</strong>Letters, 10, pp. 611-616.Cook, S. <strong>and</strong> Manning N. (2003) The power <strong>of</strong>asymmetric unit root tests under threshold- consistent estimation. Applied <strong>Economic</strong>Letters, 35, pp. 1543-1550.Cook, S. (2003). The properties <strong>of</strong> asymmetricunit root tests in the presence <strong>of</strong> misspecifiedasymmetry, <strong>Economic</strong>s BulletinVol. 3, No. 10 pp. 1-10.Enders, W. <strong>and</strong> Siklos, P.L. (2001). Cointegration<strong>and</strong> threshold adjustment.<strong>Journal</strong> <strong>of</strong>Business <strong>and</strong> <strong>Economic</strong> Statistics, 19,166-167.Engle, R.F. <strong>and</strong> Granger, C.W.J. (1987). Cointegration<strong>and</strong> error correction: Representation,estimation <strong>and</strong> testing. Econometrica,55, 251-276.Esso L.J. (2010) Threshold cointegration <strong>and</strong>causality relationship between energy use<strong>and</strong> growth in seven African countries,Energy <strong>Economic</strong>s, 32(6): 1383-1391Hansen, B.E. <strong>and</strong> Seo, B. (2002). Testing forTwo-Regime Threshold Cointegration inVector Error Correction Models. <strong>Journal</strong><strong>of</strong> Econometrics, 110, pp. 293-318.Kwaitkowski, D., Phillips, P.C.B., Schmidt P,Shin Y. (1992). Testing the null hypothesis<strong>of</strong> stationarity against the alternative <strong>of</strong>a unit root. <strong>Journal</strong> <strong>of</strong> Econometrics, 54,159-178.Mohanty, S., Peterson, E.W.F. <strong>and</strong> Kruse, N.C.(1995). Price Asymmetry in the InternationalWheat Market. Canadian.<strong>Journal</strong> <strong>of</strong><strong>Agricultural</strong> <strong>Economic</strong>s, 43, 355-366.Meyer, J. <strong>and</strong> von Cramon-Taubadel, S.(2004), Asymmetric Price Transmission:A Survey. <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>Economic</strong>s,55: 581–611.Meyer, J. (2004) Measuring market integrationin the presence <strong>of</strong> transaction costs—athreshold vector error correction approach.<strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>Economic</strong>s,31:327-334V. Cramon-Taubadel, S. (1998). Estimatingasymmetric Price Transmission with theError Correction Representation: An Applicationto the German Pork Market”,European Review <strong>of</strong> <strong>Agricultural</strong> <strong>Economic</strong>s,25, pp. 1-18.V. Cramon-Taubadel, S. <strong>and</strong> Fahlbusch, S.(1994). Identifying asymmetric priceTransmission with error correction models.Poster Session EAAE European Seminarin Reading.25


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012SOCIO-ECONOMIC DEVELOPMENT OF THE CENTRAL FEDERAL DISTRICTOF RUSSIAN FEDERATION WITH METHODOLOGICAL ASPECTS OF INNOVATIONWASTE MANAGEMENTСОЦИАЛЬНО-ЭКОНОМИЧЕСКОЕ РАЗВИТИЕ ЦЕНТРАЛЬНОГО ФЕДЕРАЛЬНОГООКРУГА РОССИЙСКОЙ ФЕДЕРАЦИИ С УЧЕТОМ МЕТОДОЛОГИЧЕСКИХ АСПЕКТОВИННОВАЦИОННОГО УПРАВЛЕНИЯ ОТХОДАМИL.A. Shilova, Post-graduate StudentЛ.А. Шилова, аспирантNational Research University – Moscow State University <strong>of</strong> Civil Engineering, Moscow, RussiaНациональный исследовательский университет – МГСУ, Москва, РоссияPhone: +7 (495) 287-49-19, E-mail: shilova_lyubov@mail.ruABSTRACTReceived June 29, 2012The author proposed a method to improve the mechanism for assessing the ecological safety <strong>of</strong> territorieswith regional geo-environmental tensions, social <strong>and</strong> environmental performance. The necessityto assess the re-use <strong>of</strong> material <strong>and</strong> natural resources <strong>and</strong> to provide business entities right to changethe fees for environmental pollution by industrial wastes, if they are re-used in different industries.АННОТАЦИЯАвтором предложена методика совершенствования механизма оценки экологической безопасноститерриторий с учетом региональной геоэкологической напряженности, социальных иэкологических показателей. Отмечена необходимость оценки степени вторичного использованияматериальных и природных ресурсов и предоставления субъектам предпринимательскойдеятельности права изменения размеров платежей за загрязнение окружающей среды промышленнымиотходами в случаях их повторного использования в различных отраслях народногохозяйства.KEY WORDSSustainable development; Production waste; Recycling; Evaluation methodology; Methodology.КЛЮЧЕВЫЕ СЛОВАУстойчивое развитие; Отходы производства; Вторичное использование; Методика оценки;Методология.Центральный федеральный округ состоитиз 18 субъектов РФ: (Белгородская, Брянская,Владимирская, Воронежская, Ивановская, Калужская,Костромская, Курская, Липецкая,Московская, Орловская, Рязанская, Смоленская,Тамбовская, Тверская, Тульская и Ярославскаяобласти, а также г. Москва) и занимаетплощадь в 650,2 тыс. кв. км, что составляет3,8% территории Российской Федерации.В наименьшей степени округ обладаетпростыми ресурсами, так например, на одногожителя приходится лишь 0,8 га сельхозугодий(порядка 1,5 га – среднероссийское значение),приблизительно 3000 куб. м пресной воды вгод и всего 0,6 га леса (что в 10 раз меньше,чем по стране.) На территории округа разведаноболее 10,5 тыс. месторождений 38 видовполезных ископаемых.Доля запасов промышленных категорийжелезных руд составляет 59 % от общероссийских,мела – 64%, гипса – 57%, доломитов– 45%, тугоплавких глин – 41%, формовочныхматериалов – 31%, цементного сырья – 27%,огнеупорных глин – 18%, стекольного сырья –26%. Имеются запасы песка, гравия, щебня,камня.Роль Центрального федерального округанаиболее велика в производстве электроэнергии(22,1% общероссийских объемов), прокатачерных металлов (19,2%), выплавке стали(17%), производстве цельномолочной продукции(35%), хлебобулочных изделий26


L.A. SHILOVA, National Research University – Moscow State University <strong>of</strong> Civil Engineering(29,1%), водки и ликероводочных изделий(37,9%) различных видов тканей (30%), отдельныхвидов продукции химической и нефтехимическойпромышленности. Лидирующиеотрасли пищевой промышленности − сахарная,мукомольно-крупяная, маслобойная,мясная, спиртовая, кондитерская, плодоовощнаяи табачно-махорочная.Производительность труда в целом поЦентральному федеральному округу в 1,4 разавыше, чем в России, в 2,2 раза выше среднемировой,и на 20% ниже средней по ЕвропейскомуСоюзу. Такое соотношение достигаетсяочень высокими показателями г. Москвы (в2,9 раза выше среднероссийского значения).Однако, наряду с этим нарастает проблемаобращения с отходами производства и потребленияи ухудшением экологической обстановкив регионе.Рисунок 1 − Структура отходов производства и потребленияЖилищно-коммунальные службы наибольшейпроблемой считают твердые бытовыеотходы (ТБО), т.к. образуются они повсеместнои представляют собой смесь разнообразногофракционного состава, что затрудняетих сбор, обезвреживание и утилизацию.Например, только на территории г. Москвыобразуется несколько миллионов тоннотходов, в том числе 3 млн. тонн твердых бытовыхотходов и практически все они подвергаютсязахоронению на территории Московскойобласти. Утвержденная норма накоплениябытовых отходов на 1 человека в год составляет1 куб. м или 250 кг, на рисунке представленаморфологическая структура указанногообъема отходов.1,80% 1% 0,60% 0,50% 0,70%4,40% 3,20%4,90%7%38,20%9,10%28,60%Бумага, картонПищевые отходыДерево, листьяТекстильКожа,резинаПолимерные материалыКостиЧерный металлЦветной металлСтеклоКерамика, камниОтсевРисунок 2 − Структура образования отходов в Москве, утвержденная нормами накоплениябытовых отходов на 1 человека в год [1]Согласно официальным данным − среднийежегодный темп прироста отходов производстваи потребления составляет 14%. Ежегодныйприрост объема ТБО в регионах ЦФОпо оценкам «Гринпис России» и Росстата составляетоколо 10%. На рис. 3. представленакарта распределения количества мусора(кг/год) на душу населения областных городовЦФО по данным за 2008 г.27


<strong>Russian</strong> <strong>Journal</strong> <strong>of</strong> <strong>Agricultural</strong> <strong>and</strong> <strong>Socio</strong>-<strong>Economic</strong> <strong>Sciences</strong>, No. 8 (8) / 2012Рисунок 3 − Количество мусора (кг/год) на душу населения областных городов ЦФОпо данным за 2008 г. Источник: Росстат.Экономические механизмы охраны окружающейсреды получили свою реализациюв Российской Федерации в виде платы за выбросы,сбросы загрязняющих веществ в окружающуюсреду и размещение отходов. Размерыплаты за негативное воздействие и порядокее определения регламентировалисьпостановлением Совета Министров РСФСР от9 января 1991 г. № 13 «Об утверждении на1991 год нормативов платы за выбросы загрязняющихвеществ в природную среду ипорядка их применения».Позднее природоохранными органамибыл подготовлен документ, который утверждалсяпостановлением Правительства РоссийскойФедерации от 28 августа 1992 г.№632 , где также предусматривался экономическиймеханизм управления отходами и внесениеопределенной платы за их размещение вэкологические фонды федерального, региональногои местного уровней.Дифференциация платы должна происходитьна уровне каждого субъекта Федерациипутем введения в расчеты соответствующихкоэффициентов (ранее они назывались коэффициентамиэкологической ситуации и экологическойзначимости). Практика природопользованияпоследних двадцати лет показала,что подобный методологический подходсодержит ряд недоработок и может быть модифицированв соответствии с требованиямиконцепции «устойчивого развития».По мнению автора в данном случае целесообразноиспользовать нижеприведеннуюформулу для оценки степени экологическойбезопасности оцениваемой территории области,введя туда новые дифференцированныекоэффициенты региональной геоэкологическойнапряженности, в которые были бы заложенысоциальные и экологические показатели:ПЦ = ∑ Бэбi=1плМkРГэнКИ, гдеБ пл − базовый норматив платы за загрязнениеокружающей среды, руб.т/год;М − реальная масса загрязнителей, попадающихна территорию размещения отходов; т/год;K И − коэффициент индексации платы, ежегодноутверждаемый Минприроды России посогласованию с Минфином России и МинэкономразвитияРоссии; П − количество видовзагрязняющих отходов; K РГЭн − коэффициентрегиональной геоэкологической напряженности,рассчитываемый по формуле:28


L.A. SHILOVA, National Research University – Moscow State University <strong>of</strong> Civil EngineeringkРГЭнрегρ .= ⋅ k , гдеρЦФОρ − число жителей на 1 кв. км по региону;ρ регk− число жителей на 1 кв. км рассматриваемогорегиона; Эф − коэффициент, учитывающийэкологические факторы (состояниепочвы) по территориям экономических ре-Эфгионов РФ согласно Постановлению ПравительстваРФ от 12.06.2003 №344.На рис. 4 представлены данные по коэффициентурегиональной геоэкологическойнапряженности для регионов ЦФО, за исключениемгорода Москвы, для которого коэффициентбудет завышен из-за большого притокатрудовых мигрантов (численность населенияг. Москвы − 11552 тыс. человек).Московская областьБелгородская область1,914,2Липецкая областьТульская областьВоронежская область1,511,651,64Ивановская областьВладимирская областьКурская область1,341,341,27Брянская областьЯрославская областьКалужская областьТамбовская областьОрловская областьРязанская область0,990,950,920,860,860,79Смоленская областьТверская область0,430,53Костромская область0,30 0,5 1 1,5 2 2,5 3 3,5 4 4,5Коэфф. региональной геоэкологической напряженностиРисунок 4 − Расчет коэффициента региональной геоэкологической напряженностидля регионов Центрального федерального округа Российской ФедерацииКроме того, необходимо учитывать степеньвторичного использования материальныхи природных ресурсов (или процент использованияотходов) на территории области.Субъектам предпринимательской деятельностинеобходимо предоставить право коррекцииразмеров платежей за загрязнение окружающейсреды промышленными отходами вслучаях их повторного использования в любыхотраслях: капитальном строительстве(шлаки), металлургии (металлолом), в производствебумаги (макулатура) и т.д. Подобныйинновационный методологический подходимеет пионерный характер и находится настадии диссертационного исследования.БИБЛИОГРАФИЯБурейко Е.Н. «Экология городов. Отходыпроизводства и потребления» [Электронныйресурс]. - Режим доступа:http://www.portal-slovo.ru (дата обращения02.08.2012).Воробьев А.Е. Основы природопользования:экологические, экономические иправовые аспекты. Учебное пособие /А.Е.Воробьев и др. /Под ред. проф.В.В.Дьяченко. – Ростов-на-Дону: Феникс,2006. 544 с.Кураев С.Н., Мамин Р.Г. Экологическая конверсияи устойчивое развитие РоссийскойФедерации. М.: ТИССО, 2003. 88с.Эффективность государственного управления.Пер. с англ. Под ред. С.А. Батчиковаи др. М.: Консалбанкир, 1998. 842с.29


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