IDEAS home Printed from https://ideas.repec.org/a/ags/afjare/274738.html
   My bibliography  Save this article

The impacts of community-based cash management tools on smallholder rural farmers’ access to livelihood assets

Author

Listed:
  • Danai Manyumwa, Harrison
  • Siziba, Shephard
  • Unganai, Leonard
  • Mapfumo, Paul
  • Mtambanengwe, Florence

Abstract

Smallholder rural farmers are exposed to diverse idiosyncratic and covariate shocks that lead to high income and consumption volatility. Formal cash management tools, which are important for managing risk and volatility, often break down due to high information asymmetries and the transaction costs of operating in rural areas. Given this, community-based cash management tools have continued to be a dominant means of managing risk in rural areas. Community-based cash management tools can be home grown or externally induced, e.g. NGO-initiated savings groups. This study finds that participation in such savings groups significantly expands access to the financial resources that can be used to purchase goods and services, as well as to the social networks that are needed to support smallholder farmer livelihoods. However, the impact on access to physical and natural capital (at least in the short to medium term) is not significant, thus calling for complementary development interventions to reduce smallholder farmers’ vulnerability.

Suggested Citation

  • Danai Manyumwa, Harrison & Siziba, Shephard & Unganai, Leonard & Mapfumo, Paul & Mtambanengwe, Florence, 2018. "The impacts of community-based cash management tools on smallholder rural farmers’ access to livelihood assets," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 13(2), June.
  • Handle: RePEc:ags:afjare:274738
    DOI: 10.22004/ag.econ.274738
    as

    Download full text from publisher

    File URL: http://ageconsearch.umn.edu/record/274738/files/6.-Manyumwa-et-al.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Becker, Sascha O. & Caliendo, Marco, 2007. "mhbounds – Sensitivity Analysis for Average Treatment Effects," IZA Discussion Papers 2542, Institute of Labor Economics (IZA).
    2. Becker, Sascha O. & Caliendo, Marco, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 1-13.
    3. Ksoll, Christopher & Lilleør, Helene Bie & Lønborg, Jonas Helth & Rasmussen, Ole Dahl, 2016. "Impact of Village Savings and Loan Associations: Evidence from a cluster randomized trial," Journal of Development Economics, Elsevier, vol. 120(C), pages 70-85.
    4. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    5. DiPrete, Thomas A. & Gangl, Markus, 2004. "Assessing bias in the estimation of causal effects: Rosenbaum bounds on matching estimators and instrumental variables estimation with imperfect instruments," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2004-101, WZB Berlin Social Science Center.
    6. Chambers, R. & Conway, G. R., 1991. "Sustainable rural livelihoods: Practical concepts for the 21st century," IWMI Books, Reports H032821, International Water Management Institute.
    7. Catherine Porter, 2012. "Shocks, Consumption and Income Diversification in Rural Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 48(9), pages 1209-1222, September.
    8. Bhattamishra, Ruchira & Barrett, Christopher B., 2010. "Community-Based Risk Management Arrangements: A Review," World Development, Elsevier, vol. 38(7), pages 923-932, July.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjare:274738. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: http://edirc.repec.org/data/aaaeaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.