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Transaction Costs, Information Technologies, and the Choice of Marketplace among Farmers in Northern Ghana

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  • Giacomo Zanello
  • Chittur S. Srinivasan
  • Bhavani Shankar

Abstract

Using a transactions costs framework, we examine the impact of information and communication technologies (mobile phones and radios) use on market participation in developing country agricultural markets using a novel transaction-level data set of Ghanaian farmers. Our analysis of the choice of markets by farmers suggests that market information from a broader range of markets may not always induce farmers to sell in more distant markets; instead farmers may use broader market information to enhance their bargaining power in closer markets. Finally, we find weak evidence on the impact of using mobile phones in attracting farm gate buyers.

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  • Giacomo Zanello & Chittur S. Srinivasan & Bhavani Shankar, 2014. "Transaction Costs, Information Technologies, and the Choice of Marketplace among Farmers in Northern Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 50(9), pages 1226-1239, September.
    • Handle: RePEc:taf:jdevst:v:50:y:2014:i:9:p:1226-1239
    DOI: 10.1080/00220388.2014.903244
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    1. Chandra Sekhara Rao Nuthalapati & Yogesh Bhatt & Susanto K Beero, 2020. "Is the Electronic Market the Way Forward to Overcome Market Failures?," IEG Working Papers 387, Institute of Economic Growth.
    2. Eunice Adu Donkor & Elena Garnevska & Muhammad Imran Siddique & Emmanuel Donkor, 2021. "Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    3. Xiaohui Li & Hang Xiong & Jinghui Hao & Gucheng Li, 2024. "Impacts of internet access and use on grain productivity: evidence from Central China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    4. Apind, Benard Owino, 2015. "Determinants Of Smallholder Farmers Market Participation; A Case Study Of Rice Marketing In Ahero Irrigation Scheme," Research Theses 265572, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Awal Abdul‐Rahaman & Gazali Issahaku & Wanglin Ma, 2023. "Agrifood system participation and production efficiency among smallholder vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 812-835, July.
    6. Joël Cariolle & David A Carroll, 2022. "The Use of Digital for Public Service Provision in Sub-Saharan Africa," Working Papers hal-03004535, HAL.
    7. Trung Thanh Nguyen & Manh Hung Do, 2022. "Female rural–urban migrants and online marketplaces in emerging economies: Evidence from Thailand and Vietnam," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 9(3), pages 317-342, September.
    8. Salas Garcia, Vania B. & Fan, Qin, 2015. "Information Access and Smallholder Farmers’ Selling Decisions in Peru," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205380, Agricultural and Applied Economics Association.
    9. Zhu, Xiaoke & Hu, Ruifa & Zhang, Chao & Shi, Guanming, 2021. "Does Internet use improve technical efficiency? Evidence from apple production in China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    10. Nguyen, Trung Thanh & Do, Manh Hung & Rahut, Dil & Nguyen, Viet Hung & Chhay, Panharoth, 2023. "The impact of internet use on the performance of agricultural cooperatives in Vietnam," MPRA Paper 117274, University Library of Munich, Germany.
    11. Aashish Argade & Laha, A. K., 2018. "Marketplace Options in an Emerging Economy Local Food Marketing System- Producers’ Choices, Choice Determinants and Requirements," IIMA Working Papers WP 2018-01-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
    12. Trung Thanh Nguyen & Manh Hung Do & Dil B. Rahut & Viet Hung Nguyen & Panharoth Chhay, 2023. "Female leadership, internet use, and performance of agricultural cooperatives in Vietnam," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 877-903, September.
    13. Hongyu Wang & Apurbo Sarkar & Lu Qian, 2021. "Evaluations of the Roles of Organizational Support, Organizational Norms and Organizational Learning for Adopting Environmentally Friendly Technologies: A Case of Kiwifruit Farmers’ Cooperatives of Me," Land, MDPI, vol. 10(3), pages 1-23, March.
    14. Pagare, Dewang & Biswas, Indranil & Agrahari, Amit & Ghosh, Sriparna, 2023. "A small farmer’s market choice in the presence of multiple markets: The Indian case," European Journal of Operational Research, Elsevier, vol. 311(2), pages 739-753.
    15. Trung Thanh Nguyen & Manh Hung Do, 2022. "Female migrants and online market participation in rural Southeast Asia," TVSEP Working Papers wp-026, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.

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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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