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Selling at the farmgate or traveling to the market:a conditional farm-level model

Author

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  • Francis M. Muamba*

    (The Ohio State University, USA)

Abstract

This paper seeks to indentify the determinants of smallholder farmer's market participation decisions using a farm level approach. By opening the black box which conceals the complex mechanism guiding farmers' market participation decision, this paper's contribution resides on its ability to take account of the conditional nature of farmers' decision to participate in the market. The paper develops a farm level sequential market participation model while taking account of the conditional nature of farmer's decision to participate in the market. In fact, the paper argues that the farmer's decision to participate in the market of a certain crop is dependent on producing the crop. Therefore, failing to account for this may bias the results. From a policy implication standpoint, the highlights of the results suggest that providing affordable and easily accessible fertilizers will incentivize both greater market participation and market volume supplied of both cash and food crop types.

Suggested Citation

  • Francis M. Muamba*, 2011. "Selling at the farmgate or traveling to the market:a conditional farm-level model," Journal of Developing Areas, Tennessee State University, College of Business, vol. 44(2), pages 95-107, January-M.
    • Handle: RePEc:jda:journl:vol.44:year:2011:issue2:pp:95-107
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    File URL: http://muse.jhu.edu/journals/journal_of_developing_areas/v044/44.2.muamba.html
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    Citations

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    Cited by:

    1. William J Burke, 2019. "Evidence against Imposing Restrictions on Hurdle Models as a Test for Simultaneous versus Sequential Decision Making," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 101(5), pages 1473-1481.
    2. Melkani, Aakanksha & Mason, Nicole & Mather, David & Chisanga, Brian & Jayne, Thom, 2021. "Smallholder Market Participation and Choice of Marketing Channel in the Presence of Liquidity Constraints: Evidence from Zambian Maize Markets," 2021 Conference, August 17-31, 2021, Virtual 315273, International Association of Agricultural Economists.
    3. Paul Kwame Nkegbe & Abdelkrim Araar & Benjamin Musah Abu & Hamdiyah Alhassan & Yazidu Ustarz & Edinam Dope Setsoafia & Shamsia Abdul-Wahab, 2022. "Nonfarm activity and market participation by farmers in Ghana," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-23, December.
    4. Benjamin Musah Abu & Haruna Issahaku & Paul Kwame Nkegbe, 2016. "Farmgate versus market centre sales: a multi-crop approach," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 4(1), pages 1-16, December.

    More about this item

    Keywords

    Africa; Benin; Market Participation; Poor Farmers; Fertilizers;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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