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Changing Incentives to Sow Cotton for African Farmers: Evidence from the Burkina Faso Reform

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  • Kaminski, Jonathan

Abstract

Over the last 10 years, Burkina Faso has experienced a reform of its cotton sector, and is now the largest African cotton producer and exporter. The cotton ”boom” consisted of a rapid expansion of cotton areas through the growth of land shares allocated to cotton (and new producers), together with an overall increase in total cultivated land. In this paper, we present an empirical framework to determine the contribution of total farmland changes in the increase of land dedicated to cotton, where both processes are represented by ordered endogenous variables. We then analyze data that we collected in rural Burkina Faso in March 2006 within this framework. From measurable indicators of farmer behavior and variables that measure farmer statements for the reasons of this behavior, we are able to identify both direct and indirect effects of the cotton reform on the extensive growth of cotton seed production. They are namely mechanization and technical assistance, labor intensification, enhanced managerial abilities (learning by doing and better environment for farmers), production incentives arising from the new local organizations of producers, guarantees and confidence stemming from the sector and an easier access to agricultural inputs.

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Bibliographic Info

Paper provided by Hebrew University of Jerusalem, Department of Agricultural Economics and Management in its series Discussion Papers with number 45779.

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Date of creation: Dec 2008
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Handle: RePEc:ags:huaedp:45779

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Postal: Faculty of Agriculture, Food and Environmental Quality Sciences Hebrew University of Jerusalem, P.O. Box 12, Rehovot 76100
Phone: 08-9481230
Fax: 08-9466267
Web page: http://departments.agri.huji.ac.il/economics/indexe.html
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Keywords: parastatal; Burkina Faso’s cotton; land extension; privatization; Crop Production/Industries;

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  1. Rosenzweig, Mark R & Binswanger, Hans P, 1993. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Economic Journal, Royal Economic Society, vol. 103(416), pages 56-78, January.
  2. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, vol. 32(3), pages 519-536, March.
  3. Jayne, T S, 1994. "Do High Food Marketing Costs Constrain Cash Crop Production? Evidence from Zimbabwe," Economic Development and Cultural Change, University of Chicago Press, vol. 42(2), pages 387-402, January.
  4. Rivers, Douglas & Vuong, Quang H., 1988. "Limited information estimators and exogeneity tests for simultaneous probit models," Journal of Econometrics, Elsevier, vol. 39(3), pages 347-366, November.
  5. Brambilla, Irene & Porto, Guido G., 2006. "Farm productivity and marketstructure : evidence from cotton reforms in Zambia," Policy Research Working Paper Series 3904, The World Bank.
  6. Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
  7. Takamasa Akiyama & John Baffes & Donald Larson & Panos Varangis, 2001. "Commodity Market Reforms : Lessons of Two Decades," World Bank Publications, The World Bank, number 13852, February.
  8. Timothy G. Conley & Christopher R. Udry, 2005. "Learning about a new technology: pineapple in Ghana," Proceedings, Federal Reserve Bank of San Francisco.
  9. Fan, Shenggen, 1990. "Effects Of Technological Change And Institutional Reform On Production Growth In Chinese Agriculture," Staff Papers 13454, University of Minnesota, Department of Applied Economics.
  10. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank.
  11. Gray, Leslie C. & Kevane, Michael, 2001. "Evolving Tenure Rights and Agricultural Intensification in Southwestern Burkina Faso," World Development, Elsevier, vol. 29(4), pages 573-587, April.
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