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Commercialisation and Poverty in Tanzania: Household-level Analysis

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Author Info
Elina Eskola (Department of Economics, University of Copenhagen)
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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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
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Handle: RePEc:kud:kuiedp:0527

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

Find related papers by JEL classification:
C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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