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Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?

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  • Briones, Roehlano M.

Abstract

Considerable empirical work relates participation in contract farming with farm profitability. However causation is far from settled as few studies control for endogeneity of participation. Moreover the link between contract farming and equity is ambiguous as the association between contract farming and farmer endowments is mixed. This case study of smallholders in the tobacco industry addresses these issues, and seems to be the first such econometric application in the Philippines. Based on a treatment effects regression, contract farming increases profitability, with participation biased toward smaller farm sizes, supporting the positive role of contract farming toward inclusive growth in rural areas.

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  • Briones, Roehlano M., 2015. "Small Farmers in High-Value Chains: Binding or Relaxing Constraints to Inclusive Growth?," World Development, Elsevier, vol. 72(C), pages 43-52.
  • Handle: RePEc:eee:wdevel:v:72:y:2015:i:c:p:43-52
    DOI: 10.1016/j.worlddev.2015.01.005
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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Smallholder Farmers and Agricultural Value Chains: What Is the Policy Relevance?
      by Marc F. Bellemare in Marc F. Bellemare on 2015-03-19 14:00:21

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    9. von Braun, Joachim & Mirzabaev, Alisher, 2015. "Small Farms: Changing Structures and Roles in Economic Development," Discussion Papers 210464, University of Bonn, Center for Development Research (ZEF).
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