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Commercialisation and Poverty in Tanzania: Household-level Analysis

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  • Elina Eskola

    (Department of Economics, University of Copenhagen)

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    Abstract

    Data from a recent Tanzanian household survey are used to investigate households’ connectedness to market economy i.e. commercialisation. The study puts emphasis on facilitating access to the nearest markets and market information as means to enhance commercialisation. Commercialisation and total consumption are found to be highly correlated and mutually reinforcing. The more commercialised the household is, the higher probability it has to be well off and thus enhanced commercialisation should be encouraged as a way to increase households’ welfare. The distance to the nearest market and the availability of market information are found to be significant factors in households’ degree of commercialisation. However, the importance of large regional fixed effects highlights the importance of the structural barriers for trade in Tanzania.

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    File URL: http://www.econ.ku.dk/english/research/publications/wp/2005/0527.pdf/
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    Bibliographic Info

    Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 05-27.

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    Length: 45 pages
    Date of creation: Dec 2005
    Date of revision:
    Handle: RePEc:kud:kuiedp:0527

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    Keywords: commercialisation; poverty; transaction cost; household model; Tanzania;

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    1. Dominique van de Walle, 2009. "Impact evaluation of rural road projects," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 1(1), pages 15-36.
    2. van de Walle, Dominique, 2002. "Choosing Rural Road Investments to Help Reduce Poverty," World Development, Elsevier, vol. 30(4), pages 575-589, April.
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