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Establishing the link between market orientation and agricultural commercialization: Empirical evidence from Northern Ghana

Author

Listed:
  • Edward Martey

    (CSIR-Savanna Agricultural Research Institute (CSIR-SARI)
    University of Illinois)

  • Prince M. Etwire

    (CSIR-Savanna Agricultural Research Institute (CSIR-SARI))

  • Alexander Nimo Wiredu

    (CSIR-Savanna Agricultural Research Institute (CSIR-SARI)
    International Institute of Tropical Agriculture)

  • Benjamin D. K. Ahiabor

    (CSIR-Savanna Agricultural Research Institute (CSIR-SARI))

Abstract

This paper established a positive relationship between market orientation and intensity of commercialization among rural farm households in northern Ghana. The IV Tobit regression estimate suggests that intensity of maize commercialization is significantly determined by education, agro-ecology, household size, total livestock units, farm size, access to formal markets and market orientation. In addition, a highly and unbiased significant positive effect is observed between market orientation and intensity of maize commercialization after controlling for endogeneity in market orientation. Intensity of maize commercialization increased by 0.86% for a 0.1 unit increase in the market orientation index. The empirical implications of the results are discussed.

Suggested Citation

  • Edward Martey & Prince M. Etwire & Alexander Nimo Wiredu & Benjamin D. K. Ahiabor, 2017. "Establishing the link between market orientation and agricultural commercialization: Empirical evidence from Northern Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(4), pages 849-866, August.
    • Handle: RePEc:spr:ssefpa:v:9:y:2017:i:4:d:10.1007_s12571-017-0688-9
    DOI: 10.1007/s12571-017-0688-9
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    Cited by:

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    2. Eliaza Mkuna & Edilegnaw Wale, 2022. "Explaining Farmers’ Income via Market Orientation and Participation: Evidence from KwaZulu-Natal (South Africa)," Sustainability, MDPI, vol. 14(21), pages 1-16, October.
    3. Mossie, Mengistie & Gerezgiher, Alemseged & Ayalew, Zemen & Nigussie, Zerihun, 2021. "Welfare effects of small-scale farmers' participation in apple and mango value chains in Ethiopia," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 60(2), May.
    4. Yao, Becatien H. & Shanoyan, Aleksan & Schwab, Benjamin & Amanor-Boadu, Vincent, 2022. "Mobile money, transaction costs, and market participation: evidence from Côte d’Ivoire and Tanzania," Food Policy, Elsevier, vol. 112(C).
    5. Currey, Phillip & Nicetic, Oleg, 2021. "Market Orientation in Agricultural Value Chain Development Projects," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 29(2), May.
    6. Prabath Chaminda Abeysiriwardana & Udith K. Jayasinghe-Mudalige, 2022. "Single window performance management: a strategy for evaluation integrated research culture in the commercial agriculture sector," SN Business & Economics, Springer, vol. 2(9), pages 1-24, September.
    7. Kotu, Bekele Hundie & Oyinbo, Oyakhilomen & Hoeschle-Zeledon, Irmgard & Nurudeen, Abdul Rahman & Kizito, Fred & Boyubie, Benedict, 2022. "Smallholder farmers’ preferences for sustainable intensification attributes in maize production: Evidence from Ghana," World Development, Elsevier, vol. 152(C).

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