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Participation in pro poor agro based enterprises in Malawi: do households’ poverty levels change automatically?

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  • Pangapanga, Phiriinnocent
  • Thangalimodzi, Lucy Tembo

Abstract

This paper explores factors that influence households’ engagement in pro poor agro enterprises and examines the impacts of such small and medium scale enterprise on households’ poverty reduction. The paper approaches the objective by estimating a multivariate and data censoring analyses on 1000 household dataset from Malawi. The paper found that fish and mushroom farming, cassava flour processing, pig and chicken rearing, rural bakeries, and other have positive effect on household poverty levels. Pro poor agro based enterprises reduced household poverty by 8-24% among poor household in Malawi. However, the data depicts that pro poor small and medium scale businesses owners are challenged by lack of credit, low bargaining power, high input costs, low product prices and lack of reliable markets. The paper recommends mainstreaming factors and market based barriers that affect participation in agro based enterprises in Malawi. The paper also suggests that pro poor programs ought to be gender responsive at all levels of their operations.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39446.

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Date of creation: 18 May 2012
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Handle: RePEc:pra:mprapa:39446

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Keywords: Households; Multivariate Analysis; Pro poor Agro Enterprises; Malawi;

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  1. Molua, Ernest L. & Lambi, Cornelius M., 2007. "The economic impact of climate change on agriculture in Cameroon," Policy Research Working Paper Series, The World Bank 4364, The World Bank.
  2. World Bank, 2010. "Economics of Adaptation to Climate Change : Synthesis Report," World Bank Other Operational Studies 12750, The World Bank.
  3. Maddison, David, 2007. "The perception of and adaptation to climate change in Africa," Policy Research Working Paper Series, The World Bank 4308, The World Bank.
  4. Langyintuo, Augustine S. & Mekuria, Mulugetta, 2008. "Assessing the influence of neighborhood effects on the adoption of improved agricultural technologies in developing agriculture," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, African Association of Agricultural Economists, vol. 2(2), September.
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