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Farm productivity and marketstructure : evidence from cotton reforms in Zambia

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  • Brambilla, Irene
  • Porto, Guido G.

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 outgrower 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 outgrower scheme, and a subsequent period of success of the scheme. The authors'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 outgrower 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 The World Bank in its series Policy Research Working Paper Series with number 3904.

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Date of creation: 01 May 2006
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Handle: RePEc:wbk:wbrwps:3904

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Keywords: Crops&Crop Management Systems; Economic Theory&Research; Livestock&Animal Husbandry; Rural Poverty Reduction; Rural Development Knowledge&Information Systems;

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References

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  1. James Levinsohn & Amil Petrin, 2000. "Estimating Production Functions Using Inputs to Control for Unobservables," NBER Working Papers 7819, National Bureau of Economic Research, Inc.
  2. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1.
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  13. Edmonds, Eric V., 2008. "Child Labor," Handbook of Development Economics, Elsevier, Elsevier.
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  17. repec:nbr:nberwo:11175 is not listed on IDEAS
  18. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, Elsevier, vol. 18(2-3), pages 297-313, August.
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Citations

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Cited by:
  1. Canaday, Neil & Jaremski, Matthew, 2012. "Legacy, location, and labor: Accounting for racial differences in postbellum cotton production," Explorations in Economic History, Elsevier, Elsevier, vol. 49(3), pages 291-302.
  2. 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.
  3. 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), Université de Lausanne, Faculté des HEC, DEEP 05.09, Université de Lausanne, Faculté des HEC, DEEP.
  4. Christian K.M. Kingombe & Salvatore di Falco, 2012. "Labour Market and Fiscal Policy," IHEID Working Papers, Economics Section, The Graduate Institute of International Studies 04-2012, Economics Section, The Graduate Institute of International Studies, revised 28 Feb 2012.
  5. Kaminski, Jonathan & Headey, Derek & Bernard, Tanguy, 2011. "The Burkinabè Cotton Story 1992-2007: Sustainable Success or Sub-Saharan Mirage?," World Development, Elsevier, Elsevier, vol. 39(8), pages 1460-1475, August.
  6. KAMINSKI Jonathan & THOMAS Alban, 2009. "Commodity Reform and Extensive Production Growth: Evidence from Burkinabè cotton farmers," LERNA Working Papers, LERNA, University of Toulouse 09.01.277, LERNA, University of Toulouse.
  7. Christian K.M. Kingombe, 2012. "The Linkage between Outcome Differences in Cotton Production and Rural Roads Improvements - A Matching Approach," IHEID Working Papers, Economics Section, The Graduate Institute of International Studies 12-2012, Economics Section, The Graduate Institute of International Studies.
  8. repec:nbr:nberwo:11175 is not listed on IDEAS
  9. 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.
  10. Cadot, Olivier & Dutoit, Laure & Olarreaga, Marcelo, 2010. "Barriers to Exit from Subsistence Agriculture," CEPREMAP Working Papers (Docweb), CEPREMAP 1014, CEPREMAP.
  11. 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.
  12. Kaminski, Jonathan, 2008. "Changing Incentives to Sow Cotton for African Farmers: Evidence from the Burkina Faso Reform," Discussion Papers, Hebrew University of Jerusalem, Department of Agricultural Economics and Management 45779, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
  13. 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.
  14. Kaminski, Jonathan & Thomas, Alban, 2009. "Commodity Reform and Extensive Production Growth: Evidence from Burkinabè Cotton Farmers," TSE Working Papers, Toulouse School of Economics (TSE) 09-008, Toulouse School of Economics (TSE).
  15. 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.

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