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Burley tobacco clubs in Malawi : nonmarket institutions for exports

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Author Info
Negri, Mariano
Porto, Guido G.

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Abstract

This paper studies nonmarket institutions that facilitate exports. In Malawi, as in many other developing countries, farmers face numerous constraints that disconnect them from export markets. The paper explores the role of a local institution, the burley tobacco clubs, in bridging smallholders to exports. Burley clubs potentially enable farmers to increase their tobacco farming productivity by providing services related to institutional access, collective action, economies of scale, and supporting network. Using matching methods and instrumental variable techniques, the authors find that tobacco club membership causes an increase of between 40-74 percent in output per acre and an increase of between 45-89 percent in tobacco sales per acre. Instead, neither the land share allocated to tobacco nor the unit value obtained by the producers is affected by club membership.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4561.

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Date of creation: 01 Mar 2008
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Handle: RePEc:wbk:wbrwps:4561

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Related research
Keywords: Tobacco Use and Control; Alcohol and Substance Abuse; Crops&Crop Management Systems; Adolescent Health; Access to Finance;

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  8. Daron Acemoglu & Simon Johnson, 2005. "Unbundling Institutions," Journal of Political Economy, University of Chicago Press, vol. 113(5), pages 949-995, October.
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  9. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Blackwell Publishing, vol. 65(2), pages 261-94, April. [Downloadable!] (restricted)
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