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

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Author Info
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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Publisher 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
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Fax: 08-9466267
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Related research
Keywords: parastatal; Burkina Faso’s cotton; land extension; privatization;

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References listed on IDEAS
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  1. 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. [Downloadable!] (restricted)
  2. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December. [Downloadable!] (restricted)
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  3. 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. [Downloadable!] (restricted)
  4. 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.
  5. 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. [Downloadable!] (restricted)
  6. 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. [Downloadable!] (restricted)
  7. Baffes, John, 2004. "Cotton : Market setting, trade policies, and issues," Policy Research Working Paper Series 3218, The World Bank. [Downloadable!]
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