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Market Access and Quality Upgrading: Evidence from Four Field Experiments

Author

Listed:
  • Tessa Bold
  • Selene Ghisolfi
  • Frances Nsonzi
  • Jakob Svensson

Abstract

Smallholder farming in many developing countries is characterized by low productivity and low-quality output. Low quality limits the price farmers can command and their potential income. We conduct a series of experiments among maize farmers in Uganda to shed light on the barriers to quality upgrading and to study its potential. We find that the causal return to quality is zero. Providing access to a market where quality is paid a market premium led to an increase in farm productivity and income from farming. Our findings reveal the importance of demand-side constraints in limiting rural income and productivity growth.

Suggested Citation

  • Tessa Bold & Selene Ghisolfi & Frances Nsonzi & Jakob Svensson, 2022. "Market Access and Quality Upgrading: Evidence from Four Field Experiments," American Economic Review, American Economic Association, vol. 112(8), pages 2518-2552, August.
    • Handle: RePEc:aea:aecrev:v:112:y:2022:i:8:p:2518-52
    DOI: 10.1257/aer.20210122
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    Citations

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    Cited by:

    1. Rao, Manaswini & Shenoy, Ashish, 2023. "Got (clean) milk? Organization, incentives, and management in Indian dairy cooperatives," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 708-722.
    2. Paul Fenton Villar & Tomasz Kozakiewicz & Vinitha Bachina & Sarah Young & Shannon Shisler, 2023. "PROTOCOL: The effects of agricultural output market access interventions on agricultural, socio‐economic and food and nutrition security outcomes in low‐ and middle‐income countries: A systematic revi," Campbell Systematic Reviews, John Wiley & Sons, vol. 19(3), September.
    3. Jens Klooster & Mikhail Zhelonkin, 2024. "Outlier robust inference in the instrumental variable model with applications to causal effects," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 39(1), pages 86-106, January.
    4. Vivian Hoffmann & Sarah Kariuki & Janneke Pieters & Mark Treurniet, 2023. "Upside risk, consumption value, and market returns to food safety," American Journal of Agricultural Economics, John Wiley & Sons, vol. 105(3), pages 914-939, May.
    5. Wouter Zant, 2022. "Two Birds with One Stone: Technology Adoption and Market Participation through Protection against Crop Failure," Tinbergen Institute Discussion Papers 22-091/V, Tinbergen Institute.

    More about this item

    JEL classification:

    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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