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This paper evaluates the development impacts of migration and remittances in migrant source communities by applying insights from the New Economics of Labor Migration (NELM) theory to Ethiopia’s migration. Using household survey data, we empirically evaluate how household participation in migration arises and so that the subsequent labor losses and the influx of remittances affect income sources and asset accumulation of smallholder farm households. To account several econometric issues and consistently estimate the impacts of migration and remittances, we adopted three-stage least-squares method complemented with endogeneity and multicollinearity test. Besides, using logistic and multinomial logistic regressions respectively, we estimate the determinants of the household migration decision to have migrants, as well as the probability of the household to send out temporary or permanent migrants. Findings suggest that larger and wealthier households are less likely to have migrant family members, while households living below the poverty line, as well as villages with the highest unemployment rate, are the most likely to have both temporary and permanent migrants. However, a rise in months spent out of agriculture has a significant negative effect on crop income and asset accumulation, but only for permanent migration. By contrast, the influx of remitted income from migrants has led to increased crop income and asset values in the form of land and livestock holdings. Finally, this manuscript provides more comprehensive evidence by showing the net-returns of migration in terms of initial lost-labor effects and the positive developmental impacts that it produces varied for households with different types of migration and production conditions. [ABSTRACT FROM AUTHOR]

Horticultural production for the export market has been credited for rural community growth and employment in Sub-Saharan Africa. To make the agri-enterprises competitive and profitable, smallholder farmers are now required to invest in food safety and production standards such as GLOBAL Good Agricultural Practices (GLOBAL GAP). Most often, the inability to afford capital has affected compliance with food safety production standards. However, farmers can use household assets to finance the agri enterprise ventures. The purpose of the study is to explore the impact of household wealth on the adoption of food safety certification standards. The study used cross-sectional data collected from 479 smallholder farmers in Kenya. The findings reveal that 49% of the households are categorized as wealthy and 51% as poorly endowed. The empirical findings on the willingness to adopt GLOBAL GAP certification reveal that membership to GLOBAL GAP affiliated farmers groups significantly influence on wealthier farmers to attain GLOBAL GAP certification status. Farmers groups facilitate joint investments that reduce the cost of investing in GLOBAL GAP assets such as grading shed, protective gear, shower rooms, disposal pits, incinerators, hessian coolers, packaging crates, soil testing kits and establishing food traceability systems. In comparison to poor endowed farming households, the well-endowed farmers have a relatively significantly better wealth index, an indication that they can easily raise capital investments to finance GAP certification. Finally, we observe that selling beans to GAP certified buyers significantly enables farmers to comply with the expected certified production standards. [ABSTRACT FROM AUTHOR]