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Agricultural extension and imperfect supervision in contract farming: evidence from Madagascar

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  • Marc F. Bellemare

Abstract

This article tests whether agricultural extension and imperfect supervision -- conflated here into the number of visits by a technical assistant -- increase productivity in a sample of contract farming arrangements between a processing �rm and small agricultural producers in Madagascar. Production functions are estimated which treat the number of visits by a technical assistant as an input and which exploit the variation in the number of visits between the contracted crops grown on a given plot by a speci�c grower, thereby accounting for district-, grower-, and plot-level unobserved heterogeneity. Results indicate that the elasticity of yield with respect to the number of visits lies between 1.3 and 1.7.

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Bibliographic Info

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

Volume (Year): 41 (2010)
Issue (Month): 6 (November)
Pages: 507-517

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Handle: RePEc:bla:agecon:v:41:y:2010:i:6:p:507-517

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References

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  1. Birkhaeuser, D. & Everson, R. & Feder, G., 1989. "The Economic Impact Of Agriculture Extension: A Review," Papers 567, Yale - Economic Growth Center.
  2. Moser, Christine M. & Barrett, Christopher B., 2002. "Labor, Liquidity, Learning, Conformity And Smallholder Technology Adoption: The Case Of Sri In Madagascar," 2002 Annual meeting, July 28-31, Long Beach, CA 19680, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
  4. Ackerberg, D.A. & Botticini, M., 1999. "Endogenous Matching and the Empirical Determinants of Contract Form," Papers 96, Boston University - Department of Economics.
  5. Umali-Deininger, Dina, 1997. "Public and Private Agricultural Extension: Partners or Rivals?," World Bank Research Observer, World Bank Group, vol. 12(2), pages 203-24, August.
  6. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
  7. Barrett, Christopher B. & Bellemare, Marc F. & Hou, Janet Y., 2010. "Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship," World Development, Elsevier, vol. 38(1), pages 88-97, January.
  8. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-44, June.
  9. Fafchamps, Marcel & Minten, Bart, 2001. "Property Rights in a Flea Market Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 229-67, January.
  10. Jock R. Anderson, 2004. "Agricultural Extension: Good Intentions and Hard Realities," World Bank Research Observer, World Bank Group, vol. 19(1), pages 41-60.
  11. Moser, Christine M. & Barrett, Christopher B., 2003. "The disappointing adoption dynamics of a yield-increasing, low external-input technology: the case of SRI in Madagascar," Agricultural Systems, Elsevier, vol. 76(3), pages 1085-1100, June.
  12. Anderson, Jock R. & Feder, Gershon, 2007. "Agricultural Extension," Handbook of Agricultural Economics, Elsevier.
  13. MaCurdy, Thomas E & Pencavel, John H, 1986. "Testing between Competing Models of Wage and Employment Determination in Unionized Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S3-S39, June.
  14. Frisvold, George B., 1994. "Does supervision matter? Some hypothesis tests using Indian farm-level data," Journal of Development Economics, Elsevier, vol. 43(2), pages 217-238, April.
  15. Bart Minten & Lalaina Randrianarison & Johan F.M. Swinnen, 2006. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," LICOS Discussion Papers 16406, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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Citations

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Cited by:
  1. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
  2. Freguin-Gresh, Sandrine & Anseeuw, Ward & D'Haese, Marijke F.C., 2012. "Demythifying Contract Farming: Evidence from Rural South Africa," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126567, International Association of Agricultural Economists.
  3. Saenger, Christoph & Qaim, Matin & Torero, Maximo & Viceisza, Angelino, 2012. "Contract farming and smallholder incentives to produce high quality: experimental evidence from the Vietnamese dairy sector," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126430, International Association of Agricultural Economists.
  4. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2010. "Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents," MPRA Paper 27829, University Library of Munich, Germany.
  5. Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
  6. Mujawamariya, Gaudiose & D’Haese, Marijke & Speelman, Stijn, 2013. "Exploring double side-selling in cooperatives, case study of four coffee cooperatives in Rwanda," Food Policy, Elsevier, vol. 39(C), pages 72-83.
  7. Abebe, Gumataw K. & Bijman, Jos & Kemp, Ron & Omta, Onno & Tsegaye, Admasu, 2013. "Contract farming configuration: Smallholders’ preferences for contract design attributes," Food Policy, Elsevier, vol. 40(C), pages 14-24.

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