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

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  • Bernard, Tanguy
  • Gabre-Madhin, Eleni Z.
  • Taffesse, Alemayehu Seyoum

Abstract

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

Suggested Citation

  • Bernard, Tanguy & Gabre-Madhin, Eleni Z. & Taffesse, Alemayehu Seyoum, 2008. "Heterogeneous Impacts Of Cooperatives On Smallholders’ Commercialization Behavior: Evidence From Ethiopia," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52161, African Association of Agricultural Economists (AAAE).
  • Handle: RePEc:ags:aaae07:52161
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    References listed on IDEAS

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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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    More about this item

    Keywords

    Agricultural and Food Policy; Community/Rural/Urban Development; Demand and Price Analysis; Farm Management; Food Consumption/Nutrition/Food Safety; Food Security and Poverty; Institutional and Behavioral Economics; Labor and Human Capital; Marketing; Productivity Analysis; Research and Development/Tech Change/Emerging Technologies;

    JEL classification:

    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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