IDEAS home Printed from https://ideas.repec.org/a/spr/ssefpa/v9y2017i4d10.1007_s12571-017-0688-9.html
   My bibliography  Save this article

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
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12571-017-0688-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12571-017-0688-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Blarel, Benoit, et al, 1992. "The Economics of Farm Fragmentation: Evidence from Ghana and Rwanda," The World Bank Economic Review, World Bank, vol. 6(2), pages 233-254, May.
    2. Latruffe, Laure & Piet, Laurent, 2013. "Does land fragmentation affect farm performance? A case study from Brittany, France," Working Papers 207854, Institut National de la recherche Agronomique (INRA), Departement Sciences Sociales, Agriculture et Alimentation, Espace et Environnement (SAE2).
    3. Matthew Griffin & Edward Frongillo, 2003. "Experiences and perspectives of farmers from Upstate New York farmers' markets," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 20(2), pages 189-203, June.
    4. Latruffe, Laure & Piet, Laurent, 2013. "Does land fragmentation affect farm performance? A case study from Brittany," Factor Markets Working Papers 151, Centre for European Policy Studies.
    5. Akinwumi A. Adesina & Moses M. Zinnah, 1993. "Technology characteristics, farmers' perceptions and adoption decisions: A Tobit model application in Sierra Leone," Agricultural Economics, International Association of Agricultural Economists, vol. 9(4), pages 297-311, December.
    6. P. Kristjanson & I. Okike & S. Tarawali & B. B. Singh & V. M. Manyong, 2005. "Farmers' perceptions of benefits and factors affecting the adoption of improved dual‐purpose cowpea in the dry savannas of Nigeria," Agricultural Economics, International Association of Agricultural Economists, vol. 32(2), pages 195-210, March.
    7. Martey, Edward & Wiredu, Alexander Nimo & Etwire, Prince M. & Fosu, Mathias & Buah, S. S. J. & Bidzakin, John & Ahiabor, Benjamin D. K. & Kusi, Francis, 2014. "Fertilizer Adoption and Use Intensity Among Smallholder Farmers in Northern Ghana: A Case Study of the AGRA Soil Health Project," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 3(1).
    8. Doss, Cheryl R. & Morris, Michael L., 2001. "How does gender affect the adoption of agricultural innovations?: The case of improved maize technology in Ghana," Agricultural Economics, Blackwell, vol. 25(1), pages 27-39, June.
    9. Adesina, Akinwumi A. & Zinnah, Moses M., 1993. "Technology characteristics, farmers' perceptions and adoption decisions: A Tobit model application in Sierra Leone," Agricultural Economics, Blackwell, vol. 9(4), pages 297-311, December.
    10. Pingali, Prabhu L. & Rosegrant, Mark W., 1995. "Agricultural commercialization and diversification: processes and policies," Food Policy, Elsevier, vol. 20(3), pages 171-185, June.
    11. Omiti, John M. & Otieno, David Jakinda & Nyanamba, Timothy O. & McCullough, Ellen B., 2009. "Factors influencing the intensity of market participation by smallholder farmers: A case study of rural and peri-urban areas of Kenya," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 3(1), pages 1-26, March.
    12. Randela, Rendani & Alemu, Zerihun Gudeta & Groenewald, Jan A., 2008. "Factors enhancing market participation by small-scale cotton farmers," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(4), pages 1-18, December.
    13. Lapar, M. L. & Holloway, G. & Ehui, S., 2003. "Policy options promoting market participation among smallholder livestock producers: a case study from the Phillipines," Food Policy, Elsevier, vol. 28(3), pages 187-211, June.
    14. Paul D Ellis, 2007. "Distance, dependence and diversity of markets: effects on market orientation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(3), pages 374-386, May.
    15. Laure Latruffe & Laurent Piet, 2013. "Does land fragmentation affect farm performance?," Working Papers hal-01208858, HAL.
    16. Shiyani, R. L. & Joshi, P. K. & Asokan, M. & Bantilan, M. C. S., 2002. "Adoption of improved chickpea varieties: KRIBHCO experience in tribal region of Gujarat, India," Agricultural Economics, Blackwell, vol. 27(1), pages 33-39, May.
    17. Knowler, Duncan & Bradshaw, Ben, 2007. "Farmers' adoption of conservation agriculture: A review and synthesis of recent research," Food Policy, Elsevier, vol. 32(1), pages 25-48, February.
    18. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Pingali, Prabhu L., 2001. "Environmental consequences of agricultural commercialization in Asia," Environment and Development Economics, Cambridge University Press, vol. 6(4), pages 483-502, October.
    20. Wu, Ziping & Liu, Minquan & Davis, John, 2005. "Land consolidation and productivity in Chinese household crop production," China Economic Review, Elsevier, vol. 16(1), pages 28-49.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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).
    2. 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.
    3. Yao, B. & Shanoyan, A., 2018. "The Use of Mobile Money Application and Smallholder Farmer Market Participation: Evidence form Cote d Ivoire and Tanzania," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277259, International Association of Agricultural Economists.
    4. 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.
    5. 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.
    6. 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).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gebremedhin, Berhanu & Jaleta, Moti, 2013. "Policy Imperatives of Commercial Transformation of Smallholders: Market Orientation Versus market Participation in Ethiopia," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160580, African Association of Agricultural Economists (AAAE).
    2. Gebremedhin, Berhanu & Jaleta, Moti, 2010. "Commercialization of Smallholders: Is Market Participation Enough?," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96159, African Association of Agricultural Economists (AAAE).
    3. Ciaian, Pavel & Guri, Fatmir & Rajcaniova, Miroslava & Drabik, Dusan & Paloma, Sergio Gomez y, 2018. "Land fragmentation and production diversification: A case study from rural Albania," Land Use Policy, Elsevier, vol. 76(C), pages 589-599.
    4. Gebremedhin, Berhanu & Tegegne, Azage, 2012. "Market Orientation and Market Participation of Smallholders in Ethiopia: Implications for Commercial Transformation," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125847, International Association of Agricultural Economists.
    5. Langyintuo, Augustine S. & Mungoma, Catherine, 2008. "The effect of household wealth on the adoption of improved maize varieties in Zambia," Food Policy, Elsevier, vol. 33(6), pages 550-559, December.
    6. Orea, Luis & Pérez, Jose A. & Roibás, David, 2013. "Evaluating the double effect of land fragmentation on technology choice and dairy farm productivity: A latent class model approach," Efficiency Series Papers 2013/08, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    7. Zahidul Islam, K.M. & Sumelius, John & Bäckman, Stefan, 2012. "Do differences in technical efficiency explain the adoption rate of HYV rice? Evidence from Bangladesh," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 13(1), pages 1-18.
    8. Ciaian, Pavel & Guri, Fatmir & Rajcaniova, Miroslava & Drabik, Dusan & Paloma, Sergio, 2015. "Land Fragmentation, Production Diversification, and Food Security: A Case Study from Rural Albania," 2015 Conference, August 9-14, 2015, Milan, Italy 211539, International Association of Agricultural Economists.
    9. Sauer, Johannes & Gorton, Matthew & Davidova, Sophia, 2014. "Migration and Agricultural Efficiency," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 172684, Agricultural and Applied Economics Association.
    10. Ruzzante, Sacha & Labarta, Ricardo & Bilton, Amy, 2021. "Adoption of agricultural technology in the developing world: A meta-analysis of the empirical literature," World Development, Elsevier, vol. 146(C).
    11. Ciaian, P. & Guri, F. & Rajcaniova, M. & Drabik, D. & Gomez Y Paloma, S., 2018. "Does Land Fragmentation Increase Agricultural Production Diversification in Rural Albania?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277093, International Association of Agricultural Economists.
    12. Dlamini, Lucinda Nosizo, 2019. "Determinants of commercial orientation and the level of market participation by women maize farmers in Eswatini," Research Theses 334763, Collaborative Masters Program in Agricultural and Applied Economics.
    13. Avila-Santamaria, Jorge J. & Useche, Maria P., 2016. "Urea Subsidies and the Decision to Allocate Land to a New Fertilizing Technology: Ex-ante Analysis in Ecuador," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 229851, Southern Agricultural Economics Association.
    14. Tiziana Pagnani & Elisabetta Gotor & Enoch Kikulwe & Francesco Caracciolo, 2021. "Livelihood assets’ influence on Ugandan farmers’ control practices for Banana Xanthomonas Wilt (BXW)," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 9(1), pages 1-19, December.
    15. Martey, Edward & Wiredu, Alexander Nimo & Etwire, Prince M. & Fosu, Mathias & Buah, S. S. J. & Bidzakin, John & Ahiabor, Benjamin D. K. & Kusi, Francis, 2014. "Fertilizer Adoption and Use Intensity Among Smallholder Farmers in Northern Ghana: A Case Study of the AGRA Soil Health Project," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 3(1).
    16. Caroline Roussy & Aude Ridier & Karim Chaïb, 2014. "Adoption d’innovations par les agriculteurs : rôle des perceptions et des préférences," Post-Print hal-01123427, HAL.
    17. Kenneth, Akankwasa & Gerald, Ortmann & Edilegnaw, Wale & Wilberforce, Tushemereirwe, 2012. "Ex-Ante Adoption of New Cooking Banana (Matooke) Hybrids in Uganda Based on Farmers' Perceptions," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 123302, International Association of Agricultural Economists.
    18. Bekele A. Shiferaw & Tewodros A. Kebede & Liang You, 2008. "Technology adoption under seed access constraints and the economic impacts of improved pigeonpea varieties in Tanzania," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 309-323, November.
    19. Mignouna, D.B. & Abdoulaye, T. & Alene, A. & Akinola, A.A. & Manyong, V.M., 2015. "Drivers of Market Participation Decisions among Small-scale Farmers in Yam Growing Areas of Nigeria and Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 230219, International Association of Agricultural Economists.
    20. Place, Frank & Swallow, Brent M., 2000. "Assessing the relationships between property rights and technology adoption in smallholder agriculture: a review of issues and empirical methods," CAPRi working papers 2, International Food Policy Research Institute (IFPRI).

    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:spr:ssefpa:v:9:y:2017:i:4:d:10.1007_s12571-017-0688-9. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.