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Market participation, on-farm crop diversity and household welfare: micro-evidence from Kenya


  • Asfaw, Solomon
  • Lipper, Leslie
  • Dalton, Timothy J.
  • Audi, Patrick


This paper examines determinants of output and input market participation. It employs propensity score matching techniques to evaluate the impact of market participation on pigeonpea diversity and household welfare, using cross-sectional data of 333 households from Kenya. Results show that input and output market participation decisions are quite distinct. Output market participation is influenced by household demographics, farm size and radio ownership, while input market participation is determined by farm size, bicycle ownership and access to a salaried income. The findings reveal a positive and significant impact of output market participation on pigeonpea diversity, while input market participation had a negative and significant impact on diversity. The results indicate that output market participants have significantly higher food security status than non-participants, in line with the general findings of the literature. However, no significant impact is found between indicators of household welfare and input market participation.

Suggested Citation

  • Asfaw, Solomon & Lipper, Leslie & Dalton, Timothy J. & Audi, Patrick, 2012. "Market participation, on-farm crop diversity and household welfare: micro-evidence from Kenya," Environment and Development Economics, Cambridge University Press, vol. 17(05), pages 579-601, October.
  • Handle: RePEc:cup:endeec:v:17:y:2012:i:05:p:579-601_00

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    Cited by:

    1. Seng, Kimty, 2017. "Considering the Effects of Mobile Phones on Financial Inclusion in Cambodia," MPRA Paper 82225, University Library of Munich, Germany, revised 27 Oct 2017.
    2. Asfaw, Solomon & McCarty, Nancy & Lipper, Leslie & Arslan, Aslihan & Cattaneo, Andrea, 2013. "Adaptation to Climate Change and Food Security: Micro-evidence from Malawi," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161646, African Association of Agricultural Economists (AAAE).
    3. Asfaw, Solomon & Lipper, Leslie, 2015. "Adaptation to Climate Change and its Impacts on Food Security: Evidence from Niger," 2015 Conference, August 9-14, 2015, Milan, Italy 225667, International Association of Agricultural Economists.
    4. Olwande, John & Smale, Melinda, 2014. "Commercialization Effects On Household Income, Poverty, And Diversification: A Counterfactual Analysis Of Maize Farmers In Kenya," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170028, Agricultural and Applied Economics Association.
    5. Menale Kassie & Jesper Stage & Hailemariam Teklewold & Olaf Erenstein, 2015. "Gendered food security in rural Malawi: why is women’s food security status lower?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1299-1320, December.
    6. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.

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