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Impacts of prices and transactions costs on input usage in a liberalizing economy: evidence from Tanzanian coffee growers

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  • Alex Winter-Nelson
  • Anna Temu

Abstract

Despite improvements in production incentives, agricultural output in Africa remained sluggish through the 1990s. Low use of purchased inputs may be part of the cause of persistently low productivity in African agriculture. This article analyzes the roles of relative prices and transactions costs in explaining low use of chemical inputs among Tanzanian coffee growers. A sample selection model indicates that output prices exert great influence on input purchases and that both fixed and variable transactions costs affect input use decisions. Travel costs in input and output markets have distinct effects on input usage, implying distinct avenues for interventions to promote more intensive use of agricultural inputs. Copyright 2005 International Association of Agricultural Economics.

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Bibliographic Info

Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.

Volume (Year): 33 (2005)
Issue (Month): 3 (November)
Pages: 243-253

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Handle: RePEc:bla:agecon:v:33:y:2005:i:3:p:243-253

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Cited by:
  1. Diao, Xinshen & Nwafor, Manson & Alpuerto, Vida & Akramov, Kamiljon & Salau, Sheu, 2010. "Agricultural growth and investment options for poverty reduction in Nigeria," IFPRI discussion papers 954, International Food Policy Research Institute (IFPRI).
  2. Larson, Donald F. & Gurara, Daniel Zerfu, 2013. "A conceptual model of incomplete markets and the consequences for technology adoption policies in Ethiopia," Policy Research Working Paper Series 6681, The World Bank.
  3. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
  4. Akramov, Kamiljon T., 2009. "Decentralization, agricultural services and determinants of input use in Nigeria:," IFPRI discussion papers 941, International Food Policy Research Institute (IFPRI).
  5. Sheahan, Megan & Black, Roy & Jayne, Thomas S., 2012. "What is the Scope for Increased Fertilizer Use in Kenya?," Food Security International Development Working Papers 135283, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Sheahan, Megan & Black, Roy & Jayne, Thomas S., 2012. "Are Farmers Under-Utilizing Fertilizer? Evidence from Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126739, International Association of Agricultural Economists.
  7. Arega, D.A. & Manyong, Victor M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, George D., 2008. "Smallholder marketed surplus and input use under transactions costs: maize supply and fertilizer demand in Kenya," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52074, African Association of Agricultural Economists (AAAE).
  8. Liverpool-Tasie, Lenis Saweda, 2012. "Targeted Subsidies and Private Market Participation: An Assessment of Fertilizer Demand in Nigeria:," IFPRI discussion papers 1194, International Food Policy Research Institute (IFPRI).
  9. Sheahan, Megan & Black, Roy & Jayne, T.S., 2013. "Are Kenyan farmers under-utilizing fertilizer? Implications for input intensification strategies and research," Food Policy, Elsevier, vol. 41(C), pages 39-52.
  10. Baylis, Katherine R. & Chhatre, Ashwini & Prasanna, Satya & Songsermsawas, Tisom, 2012. "Friends or Traders? Do social networks affect the use of market mechanisms by farmers in India," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124889, Agricultural and Applied Economics Association.
  11. Bernard, Munyua & Hellin, Jonathan & Nyikal, Rose Adhiambo & Mburu, John G., 2010. "Determinants for Use of Certified Maize Seed and the Relative Importance of Transaction Costs," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96423, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).

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