Zin Wai Aung

Fertilizer and conflicts: Evidence from Myanmar

The number of farmers residing in fragile and conflict-affected countries is rising globally, yet the impacts of conflict on the economics of inorganic fertilizer in these settings remain poorly understood. We study how conflicts in Myanmar, combined with global fertilizer market disruptions, have affected inorganic fertilizer prices, use, response, and efficiency. We utilize unique nationally representative household panel survey data and a comprehensive approach that employs various analytical methods to examine the nexus between conflicts and fertilizer-related issues. Our findings reveal that greater intensity of violent events is associated with higher prices of major types of inorganic fertilizer, particularly in areas farther from major import locations. These price changes and increases in violent events have suppressed both the likelihood and quantity of inorganic fertilizer usage, leading to decreased rice yield responses at given nitrogen application levels. Panel stochastic frontier analyses, combined with a method addressing the endogeneity of inorganic fertilizer use, suggest a significant decline in fertilizer use efficiency each year since the onset of conflict. The increase in violent events is also associated with the reduced use of extension services, seeds from markets, irrigation, and optimal fertilizer blends, which may partly explain the diminished returns and efficiency of inorganic fertilizer use. Conflict therefore seems to be associated with a change in the economics of inorganic fertilizer use through various impact channels, affecting agricultural performance in these fragile and conflict-affected settings.

In good times and in bad, in sickness and in health: The continuous rise in adoption of labour-saving agricultural technologies in Myanmar

Endogenous technologies and productivity in rice production: Roles of social instability in Myanmar since 2021

Despite technologies’ critical roles in agricultural productivity, evidence is scarce on how conflict affects technology adoption and consequent agricultural productivity, often due to a lack of data in fragile states. Our study contributes to filling this knowledge gap by using unique large-scale data on rice producers before and after a military coup in Myanmar in 2021 that led to a significant increase in conflicts in the country. We find that the increase in violent events including those in adjacent townships significantly changed the rice production function in both factor-neutral and non-neutral ways. Specifically, increased violent events have been generally associated with downward factor-neutral shift in production function, and more importantly, increased output elasticity to agricultural capital (equipment) owned (in other words, reduced output resilience against capital ownership shocks). Our evidence also suggests that this has been led partly through reduced access to agricultural extension services, which would otherwise help farmers maintain productivity even with limited capital ownership by substituting it with human capital and skills. Our results consistently hold for both panel and cross-sectional production functions across various specifications and particularly in Lower Myanmar. Results also indicate that lower mechanization service fees partly mitigate these effects.