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Factors enhancing market participation by small-scale cotton farmers

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Author Info

  • Randela, Rendani
  • Alemu, Zerihun Gudeta
  • Groenewald, Jan A.
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    Abstract

    This paper uses data collected from 177 small-scale farming households in Mpumalanga in an effort to identify factors that significantly influence the degree of commercialisation or market participation. A logistic regression model was applied within the transaction costs framework. Results support the hypothesis that transactions costs rank among the main determinants of commercialisation. The following variables were statistically significant: age, ability to speak/understand English, region, ownership of transport, access to market information, distance to market, dependency ratio, trust, land size and ownership of livestock. Increases in the latter four have negative effects on commercialisation. The negative relationship between land size and commercialisation probably indicates that increased market participation is also a function of input (land) productivity.

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    File URL: http://purl.umn.edu/47656
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    Bibliographic Info

    Article provided by Agricultural Economics Association of South Africa (AEASA) in its journal Agrekon.

    Volume (Year): 47 (2008)
    Issue (Month): 4 (December)
    Pages:

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    Handle: RePEc:ags:agreko:47656

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    Web page: http://www.aeasa.org.za/
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    Related research

    Keywords: market participation; household commercialisation; logistic regression; transaction costs;

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    1. Govereh, Jones & Jayne, Thomas S., 1999. "Effects of Cash Crop Production on Food Crop Productivity in Zimbabwe: Synergies or Trade-Offs?," Food Security International Development Policy Syntheses 11371, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    2. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
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    Cited by:
    1. Mujawamariya, Gaudiose & D'Haese, Marijke F.C. & Burger, Kees, 2010. "Influence of interlocked transactions on gum arabic production and marketing in Senegal," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96826, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
    2. Bardhan, Dwaipayan & Sharma, M.L. & Saxena, Raka, 2012. "Market Participation Behaviour of Smallholder Dairy Farmers in Uttarakhand: A Disaggregated Analysis," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(2).

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