Supermarkets, farm household income and poverty: Insights from Kenya
AbstractExpansion of supermarkets in developing countries is increasingly providing opportunities for farmers to participate in modern supply chains. While some farmers are excluded by stringent supermarket requirements, there are important gains for participating farmers. However, studies analyzing income effects of high-value chains use approaches that either show no causality or ignore structural differences between farmers in different channels. Using endogenous switching regression and data from a survey of vegetable growers in Kenya, we account for systematic differences and show that participation in supermarket chains yields 50% gain in household income leading to 33% reduction in poverty. Supermarket expansion is therefore likely to have substantial welfare effects if more farmers are supported to overcome inherent entry barriers.
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Bibliographic InfoPaper provided by African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA) in its series 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa with number 95771.
Date of creation: Jan 2010
Date of revision:
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Postal: c/o FORMAT, 5th Floor, Muthaiga Mini Market, Limuru Road, P.O. Box 79 - 00621 Village Market, Nairobi, Kenya
Phone: 254 20 6752866
Web page: http://www.aaae-africa.org
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supermarkets; per capita income; sample selection; endogenous switching regression; Kenya; Africa; Agribusiness; Food Security and Poverty;
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