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Linking apple farmers to markets

Author

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  • Wanglin Ma
  • Awudu Abdulai

Abstract

Purpose - – The purpose of this paper is to investigate the determinants of marketing contract choices including written contracts, oral contracts and no contracts, as well as to examine the impact of marketing contracts on net returns from apple production in China. Design/methodology/approach - – A two-stage selection correction approach (Bourguignon, Fournier, and Gurgand (BFG)) for the multinomial logit model is employed to estimate the impact of marketing contracts on net returns from apple production. On the basis of the BFG estimation, the authors also use an endogenous switching regression model and a propensity score matching technique to estimate the causal effects of marketing contract choices on net returns from apple production. Findings - – The results reveal significant selectivity correction terms in the choices of both written contracts and no contracts and insignificant selectivity correction terms in the choice of oral contract, indicating that accounting for selection bias is a prerequisite for unbiased and consistent estimation. The findings also indicate written contracts increase apple farmers’ net returns, while oral contracts exert the opposite effect. Originality/value - – To the best of the authors’ knowledge, this study is the first to examine the impact of marketing contract choices on net returns from apple production, accounting for selectivity effects.

Suggested Citation

  • Wanglin Ma & Awudu Abdulai, 2016. "Linking apple farmers to markets," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 8(1), pages 2-21, February.
    • Handle: RePEc:eme:caerpp:v:8:y:2016:i:1:p:2-21
    DOI: 10.1108/CAER-04-2015-0035
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    Citations

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    Cited by:

    1. Shahzad, Muhammad Faisal & Abdulai, Awudu, 2020. "Adaptation to extreme weather conditions and farm performance in rural Pakistan," Agricultural Systems, Elsevier, vol. 180(C).
    2. Evans Ngenoh & Barnabas K. Kurgat & Hillary K. Bett & Sindu W. Kebede & Wolfgang Bokelmann, 2019. "Determinants of the competitiveness of smallholder African indigenous vegetable farmers in high-value agro-food chains in Kenya: A multivariate probit regression analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-17, December.
    3. Bahta, Y. & Owusu-Sekyeer, E., 2018. "Nexus between homestead food garden programme and land ownership in South Africa: Implication on the income of vegetable farmers," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277732, International Association of Agricultural Economists.
    4. Awal Abdul‐Rahaman & Awudu Abdulai, 2020. "Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 259-280, April.
    5. Wanglin Ma & Alan Renwick & Kathryn Bicknell, 2018. "Higher Intensity, Higher Profit? Empirical Evidence from Dairy Farming in New Zealand," Journal of Agricultural Economics, Wiley Blackwell, vol. 69(3), pages 739-755, September.
    6. Bahta Yonas Tesfamariam & Enoch Owusu-Sekyere & Donkor Emmanuel & Tlalang Boipelo Elizabeth, 2018. "The impact of the homestead food garden programme on food security in South Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(1), pages 95-110, February.
    7. Delelegne A. Tefera & Jos Bijman, 2021. "Economics of contracts in African food systems: evidence from the malt barley sector in Ethiopia," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-21, December.
    8. Issahaku, Gazali & Abdulai, Awudu, "undated". "Adaptation to Climate Change and its influence on Household Welfare in Ghana," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259938, Agricultural and Applied Economics Association.
    9. Lin Li & Hongdong Guo & Jos Bijman & Nico Heerink, 2018. "The influence of uncertainty on the choice of business relationships: The case of vegetable farmers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 597-615, June.
    10. Fu, Hao & Zhao, Cuiping & Cheng, Chuanxing & Ma, Mengyun, 2020. "Blockchain-based agri-food supply chain management: case study in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(5), February.
    11. Ma, Wanglin & Zheng, Hongyun & Gong, Binlei, 2021. "Household Energy Choice for Cooking: Do Rural Income Growth and Ethnic Difference Play a Role?," 2021 Conference, August 17-31, 2021, Virtual 314990, International Association of Agricultural Economists.

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