Agricultural Supply Response and Smallholders Market Participation: the Case of Cambodia
AbstractThis paper explores the key causal factors behind agricultural supply response and farmers' market participation decisions in Cambodia. A stylized farm household model with market imperfections is considered and a two-step decision making process is outlined. Farmers decide, first, whether or not to participate in the market and then they decide how much to sell. The model is estimated using a Heckman type regression model. We compute the unconditional marginal effects for the full sample as well as for the samples for the small and large holders separately. Non-price factors such as risk, technology and rural infrastructure are important determinants of commercialization of agriculture in Cambodia. The marginal effects for the small and large holders differ substantially both in quantitative and qualitative terms. This suggests differential treatment in terms of intervention and incentives for small and large holders would be more effective to promote market access.
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Bibliographic InfoPaper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 1208.
Date of creation: 2012
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- Md. Shafiul Azam & Katsushi S. Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation – the Case of Cambodia," Discussion Paper Series DP2012-09, Research Institute for Economics & Business Administration, Kobe University.
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
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