Remittance and investment of Tea small holders in Uva region
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Date
2015
Journal Title
Journal ISSN
Volume Title
Publisher
Uva Wellassa University of Sri Lanka
Abstract
Labor shortage is a current problem facing by tea small holding sector. The predominant reason for
that is migration of workers from out of farming. These migrants send remittance to their households.
Societal perception about labor migration is that it has a negative impact on the sustainability of the
tea small holding sector. But, there might be some positive impacts from remittance gained by the
migrants especially as investments on tea lands. Hence, it is very much important to understand the
ability to compensate the labor shortage by the remittance sent by the migrants. According to Chen
(2004), Migrants are defined as those who lived away from their families for migratory work for no
less than one month.As well as Migrant familiesspecifically refer to those rural families in which at
least one family member is identified as migrant.Money and goods that are transmitted to households
back home by people who working away from their origin community (Adams, 1989).
Methodology
The population of the research was the total tea small holders in Uva region. There are 16 TI ranges
under 3 main sub offices in Uva region. (Annual Report 2012, Tea Small Holding Development
Authority). Multistage sampling method was used for the selection of the tea small holder’s
household units. There are three sub offices in Uva region as Haliela, Bandarawela, Welimada. There
are six ranges of Haliela sub office, six ranges of Bandarawela sub office and four ranges of
Welimada sub office. Three ranges each from Haliela and Bandarawela sub offices and two ranges
from Walimada range were randomly selected. 100 Tea small holders were randomly selected from
these 8 TI ranges. Primary data were collected from the farmers while they were interviewed at their
field or their residences. Productive investment for tea land was the dependent variable of this study.
It was measured calculating all the expenses for tea land within past twelve months. The expenditure
for, Buying new tea land, Infilling the tea land, Fertilizer application, Soil conservationmeasures,
Shade tree management, Pest and disease management , Within last twelve months. Household
characteristics, characteristics of household head and socio economics characteristics were used as
independent variables. There are thirteen independent variables as Age of house hold head, Education
Level of household head, Tea cultivated land extent, Number of children, Income from Tea land,
Durable consumption, Non-durable consumption, Other Investment, Migration Dummy, Remittance,
Income from Other Cultivation, Income from Job of household head, Number of family members.
Data were analyzed by Using Stata software package. Descriptive statistical techniques were used to
present the demographic features of the sample. Multiple linear regression analysis was worked out
to find out the impact of remittance on productive investment of Tea small holders in Uva region.
Description
Keywords
Agriculture, Export Agriculture, Tea Industrials, Tea Technology, Labour Migration, Labour Service