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Interlinked credit and farm intensification: evidence from Kenya

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  • Jayne, T.S.
  • Yamano, Takashi
  • Nyoro, James

Abstract

This paper addresses the potential for interlinked credit/input/output marketing arrangements for cash crops to promote food crop intensification. Using panel survey data from Kenya, we estimate a household fixed-effects model of fertilizer use per hectare of food crops. Results indicate that households engaging in interlinked marketing programs for selected cash crops applied considerably more fertilizer on other crops (primarily cereals) not directly purchased by the cash crop trading firm. These findings suggest that, in addition to the direct stimulus that interlinked cash crop marketing arrangements can have on small farmer incomes, these institutional arrangements may provide spillover benefits for the productivity of farmers' other activities such as food cropping.

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 31 (2004)
Issue (Month): 2-3 (December)
Pages: 209-218

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Handle: RePEc:eee:agecon:v:31:y:2004:i:2-3:p:209-218

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References

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  1. Feder, Gershon & Lau, Lawrence J. & Lin, Justin Y. & Xiaopeng Luo, 1991. "Credit's effect on productivity in Chinese agriculture : a microeconomic model of disequilibrium," Policy Research Working Paper Series 571, The World Bank.
  2. Kelley, Valerie A. & Diagana, Bocar N. & Reardon, Thomas & Gaye, Matar & Crawford, Eric W., 1996. "Cash Crop and Foodgrain Productivity in Senegal: Historical View, New Survey Evidence, and Policy Implications," Food Security International Development Policy Syntheses 11459, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January.
  4. Anjini Kochar, 1997. "Does Lack of Access to Formal Credit Constrain Agricultural Production? Evidence from the Land Tenancy Market in Rural India," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(3), pages 754-763.
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Citations

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Cited by:
  1. Lefèvre, Mélanie & Tharakan, Joe, 2011. "Intermediaries, transport costs and interlinked transactions," CEPR Discussion Papers 8615, C.E.P.R. Discussion Papers.
  2. Jayne, T. S. & Govereh, J. & Wanzala, M. & Demeke, M., 2003. "Fertilizer market development: a comparative analysis of Ethiopia, Kenya, and Zambia," Food Policy, Elsevier, vol. 28(4), pages 293-316, August.
  3. Olwande, John & Mathenge, Mary K., 2012. "Market Participation among Poor Rural Households in Kenya," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126711, International Association of Agricultural Economists.
  4. Maredia, Mywish K., 2009. "Improving the proof: Evolution of and emerging trends in impact assessment methods and approaches in agricultural development," IFPRI discussion papers 929, International Food Policy Research Institute (IFPRI).
  5. Ariga, Joshua & Jayne, Thomas S. & Nyoro, James K., 2006. "Factors Driving the Growth in Fertilizer Consumption in Kenya, 1990-2005: Sustaining the Momentum in Kenya and Lessons for Broader Replicability in Sub-Saharan Africa," Food Security Collaborative Working Papers 55167, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Swinnen, Johan F.M. & Vandeplas, Anneleen, 2007. "Contracting, Competition, and Rent Distribution Theory and Empirical Evidence from Developing and Transition Countries," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9413, European Association of Agricultural Economists.
  7. Benfica, Rui M.S. & Tschirley, David L. & Boughton, Duncan, 2006. "Interlinked Transactions in Cash Cropping Economies: The Determinants of Farmer Participation and Performance in the Zambezi River Valley of Mozambique," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25244, International Association of Agricultural Economists.
  8. Lubungu, Mary & Burke, William J. & Sitko, Nicholas J., 2013. "Analysis of the Soya Bean Value Chain in Zambia’s Eastern Province," Food Security Collaborative Working Papers 154937, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  9. 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.

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