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Supermarkets, Farm Household Income, and Poverty: Insights from Kenya

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  • Rao, Elizaphan J.O.
  • Qaim, Matin
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    Abstract

    Summary The expansion of supermarkets in developing countries may have important implications for poverty and rural development. While previous studies have compared farm profits between participants and non-participants in supermarket channels, wider income effects have hardly been analyzed. Moreover, most existing studies do not account for structural differences between the two groups. We address these issues by using endogenous switching regression and building on a survey of vegetable farmers in Kenya. Participation in supermarket channels is associated with a 48% gain in average household income, which also contributes to poverty reduction. To realize these benefits on a larger scale will require institutional support.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 39 (2011)
    Issue (Month): 5 (May)
    Pages: 784-796

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    Handle: RePEc:eee:wdevel:v:39:y:2011:i:5:p:784-796

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: supermarkets household income sample selection endogenous switching regression Kenya Africa;

    References

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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. Martha Negash & Jo Swinnen, 2012. "Biofuels and Food Security: Micro-evidence from Ethiopia," LICOS Discussion Papers 31912, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    3. Fischer, Elisabeth & Qaim, Matin, 2012. "Linking Smallholders to Markets: Determinants and Impacts of Farmer Collective Action in Kenya," World Development, Elsevier, vol. 40(6), pages 1255-1268.
    4. Hansen, Henrik & Trifković, Neda, 2014. "Food Standards are Good – For Middle-Class Farmers," World Development, Elsevier, vol. 56(C), pages 226-242.
    5. Christina Handschuch & Meike Wollni, 2013. "Traditional food crop marketing in Sub-Saharan Africa: Does gender matter?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 142, Courant Research Centre PEG.
    6. Rao, Elizaphan J.O. & Qaim, Matin, 2013. "Supermarkets and agricultural labor demand in Kenya: A gendered perspective," Food Policy, Elsevier, vol. 38(C), pages 165-176.
    7. Narayanan, Sudha, 2014. "Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India," Food Policy, Elsevier, vol. 44(C), pages 142-157.

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