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Heterogeneous Impacts Of Cooperatives On Smallholders’ Commercialization Behavior: Evidence From Ethiopia

Listed author(s):
  • Bernard, Tanguy
  • Gabre-Madhin, Eleni Z.
  • Taffesse, Alemayehu Seyoum

This paper examines the impact of marketing cooperatives on smallholder commercialization of cereals using detailed household data in rural Ethiopia. We use the strong government role in promoting the establishment of cooperatives to justify the use of propensity score matching in order to compare households that are cooperative members to similar households in comparable areas without cooperatives. The analysis reveals that while cooperatives obtain higher prices for their members, they are not associated with a significant increase in the overall share of cereal production sold commercially by their members. However, these average results hide considerable heterogeneity in the impact across households. In particular, we find smaller farmers tend reduce their marketed output as a result of higher prices, while the opposite is true for larger farmers. JEL Classification: Q13, O12

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File URL: http://purl.umn.edu/52161
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Paper provided by African Association of Agricultural Economists (AAAE) in its series 2007 Second International Conference, August 20-22, 2007, Accra, Ghana with number 52161.

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Date of creation: Nov 2008
Handle: RePEc:ags:aaae07:52161
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  1. Chamberlin, Jordan & Pender, John & Yu, Bingxin, 2006. "Development domains for Ethiopia: capturing the geographical context of smallholder development options," DSGD discussion papers 43, International Food Policy Research Institute (IFPRI).
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