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Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua

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  • Hope C. Michelson

Abstract

Despite more than a decade of NGO and government activities promoting developing world farmer participation in high-value agricultural markets, evidence regarding the household welfare effects of such initiatives is limited. This article analyzes the geographic placement of supermarket supply chains in Nicaragua between 2000 and 2008 and uses a difference-in-differences specification on measures of supplier and nonsupplier assets to estimate the welfare effects of small farmer participation. Though results indicate that selling to supermarkets increases household productive asset holdings, they also suggest that only farmers with advantageous endowments of geography and water are likely to participate. Copyright 2013, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/ajae/aas139
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Bibliographic Info

Article provided by Agricultural and Applied Economics Association in its journal American Journal of Agricultural Economics.

Volume (Year): 95 (2013)
Issue (Month): 3 ()
Pages: 628-649

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Handle: RePEc:oup:ajagec:v:95:y:2013:i:3:p:628-649

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References

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  1. Bellemare, Marc F., 2010. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," MPRA Paper 23638, University Library of Munich, Germany.
  2. Ashraf, Nava & Gine, Xavier & Karlan, Dean, 2008. "Finding Missing Markets (and a Disturbing Epilogue): Evidence from an Export Crop Adoption and Marketing Intervention in Kenya," Working Papers 56, Yale University, Department of Economics.
  3. Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  4. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
  5. Kirsten, Johann F. & Sartorius, Kurt, 2002. "Linking Agribusiness And Small-Scale Farmers In Developing Countries: Is There A New Role For Contract Farming?," Working Papers 18025, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
  6. G. S. Maddala, 1987. "Limited Dependent Variable Models Using Panel Data," Journal of Human Resources, University of Wisconsin Press, vol. 22(3), pages 307-338.
  7. David Boselie & Spencer Henson & Dave Weatherspoon, 2003. "Supermarket Procurement Practices in Developing Countries: Redefining the Roles of the Public and Private Sectors," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1155-1161.
  8. Michelson, Hope & Reardon, Thomas & Perez, Francisco Jose, 2010. "Small Farmers and Big Retail: trade-offs of supplying supermarkets in Nicaragua," Staff Papers 62124, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  9. Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
  10. Ricardo Hernández & Thomas Reardon & Julio Berdegué, 2007. "Supermarkets, wholesalers, and tomato growers in Guatemala," Agricultural Economics, International Association of Agricultural Economists, vol. 36(3), pages 281-290, 05.
  11. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
  12. Jose Blandon & Spencer Henson & Towhidul Islam, 2009. "Marketing preferences of small-scale farmers in the context of new agrifood systems: a stated choice model," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 251-267.
  13. 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.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Small Farmers, NGOs, and a Walmart World
    by Marc F. Bellemare in Marc F. Bellemare on 2013-01-09 10:00:27
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Cited by:
  1. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.
  2. 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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