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Determinants and welfare effects of smallholder participation in horticultural markets in Zambia

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  • Hichaambwa, Munguzwe
  • Chamberlin, Jordan
  • Sitko, Nicholas J

Abstract

We examine smallholder participation in horticultural markets in Zambia, with two main questions in mind: 1) who participates in horticultural markets? and 2) how does participation affect household income and other welfare outcomes? To control for self-selection bias in the estimation of impacts, we used an endogenous switching framework on nationwide representative data over two agricultural seasons pooled, but controlling for district-level fixed effects. We found that participation is associated with labour availability, farm size, lagged productive assets, social capital through blood kinship links to the chief or headman, level of community participation in the government’s input subsidy programme, and high rainfall variability measured by its coefficient of variation. Participation significantly increased income by 285% overall, increasing to over 300% for femaleheaded households, those cultivating less than one hectare and the extremely poor. These findings provide an empirical foundation to support Zambian policy-makers’ crop-diversification and poverty-reduction agricultural policy objectives.

Suggested Citation

  • Hichaambwa, Munguzwe & Chamberlin, Jordan & Sitko, Nicholas J, 2015. "Determinants and welfare effects of smallholder participation in horticultural markets in Zambia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 10(4), pages 1-18, December.
    • Handle: RePEc:ags:afjare:229810
    DOI: 10.22004/ag.econ.229810
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    2. Benjamin Davis & Leslie Lipper & Paul Winters, 2022. "IFAD Research Series 70: Do not transform food systems on the backs of the rural poor," IFAD Research Series 320710, International Fund for Agricultural Development (IFAD).
    3. Temitayo Adeyemo & Paul Amaza & Victor Okoruwa & Vincent Akinyosoye & Kabir Salman & Adebayo Abass, 2019. "Determinants of Intensity of Biomass Utilization: Evidence from Cassava Smallholders in Nigeria," Sustainability, MDPI, vol. 11(9), pages 1-16, April.
    4. Benjamin Davis & Leslie Lipper & Paul Winters, 2022. "Do not transform food systems on the backs of the rural poor," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(3), pages 729-740, June.

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