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Farm Productivity and Market Structure: Evidence from Cotton Reforms in Zambia

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  • Brambilla, Irene

    (Yale U)

  • Porto, Guido

    (World Bank)

Abstract

This paper investigates the impacts of cotton marketing reforms on farm productivity, a key element for poverty alleviation, in rural Zambia. The reforms comprised the elimination of the Zambian cotton marketing board that was in place since 1977. Following liberalization, the sector adopted an outgrowing scheme, whereby firms provided extension services to farmers and sold inputs on loans that were repaid at the time of harvest. There are two distinctive phases of the reforms: a failure of the outgrowing scheme, and a subsequent period of success of the scheme. Our findings indicate that the reforms led to interesting dynamics in cotton farming. During the phase of failure, farmers were pushed back into subsistence and productivity in cotton declined. With the improvement of the outgrowing scheme of later years, farmers devoted larger shares of land to cash crops, and farm productivity significantly increased.

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Bibliographic Info

Paper provided by Yale University, Department of Economics in its series Working Papers with number 5.

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Date of creation: Mar 2005
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Handle: RePEc:ecl:yaleco:5

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Citations

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Cited by:
  1. Jorge F. Balat & Guido G. Porto, 2007. "Globalization and Complementary Policies: Poverty Impacts on Rural Zambia," NBER Chapters, in: Globalization and Poverty, pages 373-416 National Bureau of Economic Research, Inc.
  2. Kaminski, Jonathan & Headey, Derek D. & Bernard, Tanguy, 2010. "The Burkinabe Cotton Story 1999-2007: Sustainable Success of Sub-Saharan Mirage?," Discussion Papers 93137, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  3. Canaday, Neil & Jaremski, Matthew, 2012. "Legacy, location, and labor: Accounting for racial differences in postbellum cotton production," Explorations in Economic History, Elsevier, vol. 49(3), pages 291-302.
  4. Kaminski, Jonathan & Thomas, Alban, 2009. "Commodity Reform and Extensive Production Growth: Evidence from Burkinabè Cotton Farmers," TSE Working Papers 09-008, Toulouse School of Economics (TSE).
  5. Olivier Cadot & Laure Dutoit & Marcelo Olarreaga, 2005. "How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.09, Université de Lausanne, Faculté des HEC, DEEP.
  6. Christian K.M. Kingombe & Salvatore di Falco, 2012. "Labour Market and Fiscal Policy," IHEID Working Papers 04-2012, Economics Section, The Graduate Institute of International Studies, revised 28 Feb 2012.
  7. Cadot, Olivier & Dutoit, Laure & Olarreaga, Marcelo, 2010. "Barriers to Exit from Subsistence Agriculture," CEPREMAP Working Papers (Docweb) 1014, CEPREMAP.
  8. Jorge F. Balat & Guido Porto, 2005. "Globalization and Complementary Policies: Poverty Impacts in Rural Zambia," NBER Working Papers 11175, National Bureau of Economic Research, Inc.
  9. Balat, Jorge F. & Porto, Guido G., 2005. "The WTO Doha Round, cotton sector dynamics, and poverty trends in Zambia," Policy Research Working Paper Series 3697, The World Bank.
  10. Aksoy, M. Ataman & Isik-Dikmelik, Aylin, 2007. "The role of services in rural income : the case of Vietnam," Policy Research Working Paper Series 4180, The World Bank.
  11. Kaminski, Jonathan, 2008. "Changing Incentives to Sow Cotton for African Farmers: Evidence from the Burkina Faso Reform," Discussion Papers 45779, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  12. Cadot, Olivier & Dutoit, Laure & Olarreaga, Marcelo, 2006. "How costly is it for poor farmers to lift themselves out of poverty?," Policy Research Working Paper Series 3881, The World Bank.
  13. Jonathan Kaminski & Alban Thomas, 2011. "Land Use, Production Growth, and the Institutional Environment of Smallholders: Evidence from Burkinabè Cotton Farmers," Land Economics, University of Wisconsin Press, vol. 87(1), pages 160-182.
  14. Christian K.M. Kingombe, 2012. "The Linkage between Outcome Differences in Cotton Production and Rural Roads Improvements - A Matching Approach," IHEID Working Papers 12-2012, Economics Section, The Graduate Institute of International Studies.
  15. KAMINSKI Jonathan & THOMAS Alban, 2009. "Commodity Reform and Extensive Production Growth: Evidence from Burkinabè cotton farmers," LERNA Working Papers 09.01.277, LERNA, University of Toulouse.

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