Details

Autor(en) / Beteiligte

• Takeshima, Hiroyuki
• Masias, Ian
• Win, Myat Thida
• Zone, Phoo Pye

Titel

Effects of COVID‐19 restrictions on mechanization service providers and mechanization equipment retailers: Insights from phone surveys in Myanmar

Ist Teil von

• Review of development economics, 2023-02, Vol.27 (1), p.323-351

Ort / Verlag

England: Blackwell Publishing Ltd

Erscheinungsjahr

2023

Link zum Volltext

Quelle

EBSCOhost Business Source Ultimate

Beschreibungen/Notizen

• Agrifood sector mechanization service providers (MSP) and mechanization equipment retailers (MER) have increasingly become the providers of mechanical technologies for smallholders in developing countries, including Myanmar. Evidence remains scarce on the effects of COVID‐19 on these MSPs and MERs. This study provides insights into the effects of COVID‐19 restrictions on MSPs and MERs in Myanmar, using unbalanced panel data from five rounds of phone surveys. Direct responses to COVID‐19 involving movement restrictions, market disruptions, and growing financial challenges had significant negative effects on revenue prospects, service delivery, and sales of machines and equipment. Negative revenue prospects during a particular period can further hurt revenue prospects in subsequent periods. This is consistent with the hypotheses that MSPs who had incurred high sunk costs in machines can engage in more desperate and, thus, potentially suboptimal business practices to recover the sunk cost. Overall, policies to minimize movement restrictions and various financial struggles and mitigate any pessimism at the beginning of the production season are all important to make sure MSPs and MERs continue to function effectively under COVID‐19.