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Interlinked Credit and Farm Intensification: Evidence from Kenya

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Author Info
Jayne, T.S.
Yamano, Takashi
Nyoro, James

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Abstract

This paper addresses the potential for interlinked credit/input/output marketing arrangements for cash crops to promote food crop intensification. Using panel survey data from Kenya, we estimate a household fixed-effects model of fertilizer use per hectare of food crops. Results indicate that households engaging in interlinked marketing programs for selected cash crops applied considerably more fertilizer on other crops (primarily cereals) not directly purchased by the cash crop trading firm. These findings suggest that, in addition to the direct stimulus that interlinked cash crop marketing arrangements can have on small farmer incomes, these institutional arrangements may provide spillover benefits for the productivity of farmers' other activities such as food cropping.

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Paper provided by International Association of Agricultural Economists in its series 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa with number 25933.

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Date of creation: 2003
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Handle: RePEc:ags:iaae03:25933

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Keywords: Agricultural Finance;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Valerie Kelly & Bocar Diagana & Thomas Reardon & Matar Gaye & Eric Crawford, 1996. "Cash Crop and Foodgrain Productivity in Senegal: Historical View, New Survey Evidence, and Policy Implications," International Development Papers 20, Department of Agricultural Economics, Michigan State University. [Downloadable!]
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  2. Govereh, Jones & Jayne, T. S., 2003. "Cash cropping and food crop productivity: synergies or trade-offs?," Agricultural Economics, Blackwell, vol. 28(1), pages 39-50, January. [Downloadable!] (restricted)
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  1. Joshua Ariga & T.S. Jayne & J. Nyoro, 2006. "Factors Driving the Growth in Fertilizer Consumption in Kenya, 1990-2005: Sustaining the Momentum in Kenya and Lessons for Broader Replicability in Sub-Saharan Africa," International Development Collaborative Working Papers KE-TEGEMEO-WP-24, Department of Agricultural Economics, Michigan State University. [Downloadable!]
  2. Swinnen, Johan F.M. & Vandeplas, Anneleen, 2007. "Contracting, Competition, and Rent Distribution Theory and Empirical Evidence from Developing and Transition Countries," 103rd Seminar, April 23-25, 2007, Barcelona, Spain 9413, European Association of Agricultural Economists. [Downloadable!]
  3. Benfica, Rui & Tschirley, David & Boughton, Duncan, 2006. "Interlinked Transactions in Cash Cropping Economies: The Determinants of Farmer Participation and Performance in the Zambezi River Valley of Mozambique," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25244, International Association of Agricultural Economists. [Downloadable!]
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This page was last updated on 2009-11-26.


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