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Improved Legume Seed Demand Systems In Central Malawi: What Do Farmers’ Seed Expenditures Say About Their Preferences?

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  • Kankwamba, Henry
  • Mangisoni, Julius H.
  • Simtowe, Franklin
  • Mausch, Kai
  • Siambi, Moses

Abstract

The overall objective of this paper is to assess the demand for improved groundnut, bean, and soybean seed in central Malawi. Specifically, it examines how smallholder farmers respond to changes in market prices of improved legume seed. It also assesses factors that affect the decision to participate in improved seed technology transfer. Considering four commodities namely groundnuts, beans, soybeans and maize, a staple food, the paper estimates a multivariate probit and a linear approximate of the Almost Ideal Demand System (LA/AIDS) using cross section data collected by ICRISAT in 2010. Uncompensated price and expenditure elasticities are reported for the LA/AIDS model. The paper finds high own price elasticities in all four commodities considered. It also indicates that land, household size and education levels affect participation in improved technology. Cross elasticities varied across the commodities considered. As pertain expenditure elasticities, farmers would increase expenditure on improved groundnut and beans if their incomes increased. The results also reveal that if farmers’ incomes increase they would reduce soybean’s expenditure share. The results generally show that farmers are very sensitive to changes in improved legume seed prices and incomes.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil with number 131684.

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Date of creation: 2012
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Handle: RePEc:ags:iaae12:131684

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Keywords: legumes; demand; LA/AIDS; multivariate probit; Agricultural and Food Policy; Crop Production/Industries; Production Economics;

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  1. Alboghdady, Mohamed Altabei & Alashry, Mohamed Khairy, 2010. "The demand for meat in Egypt: An almost ideal estimation," Journal of Cooperatives, NCERA-210, vol. 4(1), March.
  2. Alboghdady, Mohamed Altabei & Alashry, Mohamed Khairy, 2010. "The demand for meat in Egypt: An almost ideal estimation," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 4(1), March.
  3. Simtowe, Franklin & Zeller, Manfred, 2006. "The Impact of Access to Credit on the Adoption of hybrid maize in Malawi: An Empirical test of an Agricultural Household Model under credit market failure," MPRA Paper 45, University Library of Munich, Germany.
  4. Borsch-Supan, Axel & Hajivassiliou, Vassilis A., 1993. "Smooth unbiased multivariate probability simulators for maximum likelihood estimation of limited dependent variable models," Journal of Econometrics, Elsevier, vol. 58(3), pages 347-368, August.
  5. Fisher, Monica, 2004. "Household welfare and forest dependence in Southern Malawi," Environment and Development Economics, Cambridge University Press, vol. 9(02), pages 135-154, May.
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  7. Shahidur R. Khandker & Gayatri B. Koolwal & Hussain A. Samad, 2010. "Handbook on Impact Evaluation : Quantitative Methods and Practices," World Bank Publications, The World Bank, number 2693, October.
  8. Alston, Julian M & Foster, Kenneth A & Green, Richard D, 1994. "Estimating Elasticities with the Linear Approximate Almost Ideal Demand System: Some Monte Carlo Results," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 351-56, May.
  9. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June.
  10. Keane, Michael P, 1994. "A Computationally Practical Simulation Estimator for Panel Data," Econometrica, Econometric Society, vol. 62(1), pages 95-116, January.
  11. Fadhuile, Adelaide & Lemarie, Stephane & Pirotte, Alain, 2011. "Pesticides Uses in Crop Production: What Can We Learn from French Farmers Practices?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103654, Agricultural and Applied Economics Association.
  12. Simtowe, Franklin & Asfaw, Solomon & Diagne, Aliou & Shiferaw, Bekele A., 2010. "Determinants of Agricultural Technology adoption: the case of improved groundnut varieties in Malawi," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 95921, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
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