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Determinants and welfare effects of smallholder participation in horticultural markets in Zambia

Listed author(s):
  • Hichaambwa, Munguzwe
  • Chamberlin, Jordan
  • Sitko, Nicholas J

We examine smallholder participation in horticultural markets in Zambia, with two main questions in mind: 1) who participates in horticultural markets? and 2) how does participation affect household income and other welfare outcomes? To control for self-selection bias in the estimation of impacts, we used an endogenous switching framework on nationwide representative data over two agricultural seasons pooled, but controlling for district-level fixed effects. We found that participation is associated with labour availability, farm size, lagged productive assets, social capital through blood kinship links to the chief or headman, level of community participation in the government’s input subsidy programme, and high rainfall variability measured by its coefficient of variation. Participation significantly increased income by 285% overall, increasing to over 300% for femaleheaded households, those cultivating less than one hectare and the extremely poor. These findings provide an empirical foundation to support Zambian policy-makers’ crop-diversification and poverty-reduction agricultural policy objectives.

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File URL: http://purl.umn.edu/229810
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Article provided by African Association of Agricultural Economists in its journal African Journal of Agricultural and Resource Economics.

Volume (Year): 10 (2015)
Issue (Month): 4 (December)
Pages:

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Handle: RePEc:ags:afjare:229810
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C/O University of Nairobi, College of Agriculture and Veterinary Sciences (CAVS), Upper Kabete Campus, Loresho Ridge Rd. P.O. Box 63515 - 00619, Muthaiga, Nairobi, Kenya

Phone: +254 572 511 300
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  1. Dave D. Weatherspoon & Thomas Reardon, 2003. "The Rise of Supermarkets in Africa: Implications for Agrifood Systems and the Rural Poor," Development Policy Review, Overseas Development Institute, vol. 21, pages 333-355, 05.
  2. Hichaambwa, Munguzwe & Jayne, Thomas S., 2012. "Smallholder Commercialization Trends as Affected by Land Constraints in Zambia: What Are the Policy Implications?," Food Security Collaborative Policy Briefs 123211, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  3. David Roodman, 2011. "Fitting fully observed recursive mixed-process models with cmp," Stata Journal, StataCorp LP, vol. 11(2), pages 159-206, June.
  4. Chamberlain, Gary, 1984. "Panel data," Handbook of Econometrics,in: Z. Griliches† & M. D. Intriligator (ed.), Handbook of Econometrics, edition 1, volume 2, chapter 22, pages 1247-1318 Elsevier.
  5. Tschirley, David L. & Hichaambwa, Munguzwe, 2010. "Do Brokers Help or Hinder the Marketing of Fresh Produce in Lusaka? Preliminary Insights from Research," Food Security Collaborative Policy Briefs 93007, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  6. Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-959, July.
  7. Hichaambwa, Munguzwe & Tschirley, David L., 2010. "Why are Fresh Produce Prices So Unstable in Lusaka? Insights for Policy and Investment Priorities," Food Security Collaborative Policy Briefs 93009, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  8. Mundlak, Yair, 1978. "On the Pooling of Time Series and Cross Section Data," Econometrica, Econometric Society, vol. 46(1), pages 69-85, January.
  9. Hichaambwa, Munguzwe & Jayne, T. S., 2014. "Poverty Reduction Potential of Increasing Smallholder Access to Land," Food Security Collaborative Working Papers 171873, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  10. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
  11. Collier, Paul & Dercon, Stefan, 2014. "African Agriculture in 50Years: Smallholders in a Rapidly Changing World?," World Development, Elsevier, vol. 63(C), pages 92-101.
  12. Chapoto, Antony & Banda, Diana J. & Haggblade, Steven & Hamukwala, Priscilla, 2011. "Factors Affecting Poverty Dynamics in Rural Zambia," Food Security Collaborative Working Papers 109888, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  13. Awudu Abdulai & Wallace Huffman, 2014. "The Adoption and Impact of Soil and Water Conservation Technology: An Endogenous Switching Regression Application," Land Economics, University of Wisconsin Press, vol. 90(1), pages 26-43.
  14. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
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