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Welfare Effects Of Smallholder Farmers’ Participation In Livestock Markets In Zambia

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  • Lubungu, Mary
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    Abstract

    Does participation in livestock markets improve the welfare levels of smallholder farmers in Zambia? Are there any biases in the distribution of benefits between poor and better off households? To address these questions, we employ propensity score matching and decomposition techniques on nationally representative household survey data collected from smallholder farmers in Zambia. Our findings suggest that, other factors constant, participation in cattle markets raises household income by over 50% on average among cattle selling households. However, decomposition results suggest that poor households derive relatively smaller benefits from participation than their non-poor counterparts due to discrimination which accounts for 80.3% of the inter-group income differential.

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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. with number 150606.

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    Date of creation: 2013
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    Handle: RePEc:ags:aaea13:150606

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    Related research

    Keywords: livestock market participation; smallholder farmers; income; propensity score matching; decomposition; Zambia; Consumer/Household Economics; Farm Management; International Relations/Trade; Livestock Production/Industries;

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    2. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, 02.
    3. Dehejia, R.H. & Wahba, S., 1998. "Propensity Score Matching Methods for Non-Experimental Causal Studies," Discussion Papers 1998_02, Columbia University, Department of Economics.
    4. Davis, Benjamin & Covarrubias, Katia & Stamoulis, Kostas G. & Winters, Paul C. & Carletto, Calogero & Quinones, Esteban & Zezza, Alberto & Di Giuseppe, Stefania, 2007. "Rural Income Generating Activities: A Cross Country Comparison," 106th Seminar, October 25-27, 2007, Montpellier, France 7913, European Association of Agricultural Economists.
    5. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November.
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