IDEAS home Printed from https://ideas.repec.org/p/ags/aaae10/96826.html
   My bibliography  Save this paper

Influence of interlocked transactions on gum arabic production and marketing in Senegal

Author

Listed:
  • Mujawamariya, Gaudiose
  • D'Haese, Marijke F.C.
  • Burger, Kees

Abstract

Interlocked relationships are characterised by traders’ supply of inputs and cash to producers on credit, to be reimbursed at sale time based on a pre-defined price which is often lower than the prevailing market price. The study analyses determinants of choice of interlocking in the gum sector in Senegal and the effect of interlocking on market participation and gum production. Data from 422 gum producers in Northern and Eastern regions of Senegal are used. About 41% of respondents are involved into interlocking with village shop-owners or mobile traders. Interlocking positively influences market participation and production as found through a Heckman selection model.

Suggested Citation

  • Mujawamariya, Gaudiose & D'Haese, Marijke F.C. & Burger, Kees, 2010. "Influence of interlocked transactions on gum arabic production and marketing in Senegal," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96826, African Association of Agricultural Economists (AAAE).
    • Handle: RePEc:ags:aaae10:96826
    DOI: 10.22004/ag.econ.96826
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/96826/files/144.%20Interlocked%20transactions%20in%20the%20gum%20market%20Senegal.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.96826?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
    ---><---

    References listed on IDEAS

    as
    1. Durlauf, Steven N. & Fafchamps, Marcel, 2005. "Social Capital," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 26, pages 1639-1699, Elsevier.
    2. Eaton, Derek J.F. & Meijerink, Gerdien W. & Bijman, Jos & Belt, John, 2007. "Analysing the role of institutional arrangements: vegetable value chains in East Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7921, European Association of Agricultural Economists.
    3. repec:aer:wpaper:111 is not listed on IDEAS
    4. Marc F. Bellemare & Christopher B. Barrett, 2006. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 324-337.
    5. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," 2002 ASAE 3rd International Conference, October 18-20, Jaipur, India 294714, Asian Society of Agricultural Economists (ASAE).
    6. Ortmann, Gerald F. & King, Robert P., 2007. "Agricultural cooperatives II: Can they facilitate access of small-scale farmers in South Africa to input and product markets?," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 46(2), pages 1-26, June.
    7. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
    8. Chakrabarty, Debajyoti & Chaudhuri, Ananish, 2001. "Formal and informal sector credit institutions and interlinkage," Journal of Economic Behavior & Organization, Elsevier, vol. 46(3), pages 313-325, November.
    9. Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," World Development, Elsevier, vol. 30(9), pages 1621-1638, September.
    10. Marcel Fafchamps, 2006. "Spontaneous Markets, Networks, and Social Capital: Lessons from Africa," Economics Series Working Papers GPRG-WPS-058, University of Oxford, Department of Economics.
    11. 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.
    Full references (including those not matched with items on IDEAS)

    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. Mujawamariya, Gaudiose & D'Haese, Marijke, 2012. "In search for incentives to gum arabic collection and marketing in Senegal: Interlocking gum trade with pre-finances from traders," Forest Policy and Economics, Elsevier, vol. 25(C), pages 72-82.
    2. Mujawamariya, Gaudiose & D'Haese, Marijke F.C., 2011. "Gum arabic production and marketing in Senegal: interlocked transactions and supply chain implications," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114634, European Association of Agricultural Economists.
    3. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    4. Xolile Mamba, Tangetile, 2016. "The role of contracts in improving access to credit in the smallholder livestock sector of Swaziland," Research Theses 243472, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Momanyi, Denis & Lagat, Prof. Job K. & Ayuya, Dr. Oscar I., 2016. "Analysis of the Marketing Behaviour of African Indigenous Leafy Vegetables among Smallholder Farmers in Nyamira County, Kenya," MPRA Paper 69202, University Library of Munich, Germany, revised 27 Jan 2016.
    6. Ignaciuk, Ada & Ilicic, Joanna & Asprooth, Lauren & Sitko, Nicholas J. & Bernard, Angela & Maggio, Giuseppe & Tubiello, Francesco N. & Mueller, Marc, 2021. "Progress towards sustainable agriculture – Drivers of change," FAO Agricultural Development Economics Technical Study 319833, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    7. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    8. CHINAKI Christina & SERGAKI Panagiota, 2018. "Potentials and Pitfalls of Contract farming through Agricultural Cooperatives in Greece," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 27(1), pages 111-122.
    9. Iro Ibrahim Kutawa, 2016. "Empirical evidence on contract farming in northern Nigeria: Case study of tomato production," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(12), pages 240-253, December.
    10. Van Campenhout, Bjorn, 2015. "The dynamics of smallholder marketing behavior: Explorations using Ugandan and Mozambican panel data," IFPRI discussion papers 1478, International Food Policy Research Institute (IFPRI).
    11. Neda Trifković, 2014. "Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 50(7), pages 949-961, July.
    12. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," GlobalFood Discussion Papers 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    13. Ashish Aman Sinha & Hari Charan Behera & Ajit Kumar Behura & Braja Bandhu Swain, 2021. "Land Allocation Choice in Both Contract and Non-Contract Farming: A Study of Potato Growers in West Bengal, India," SAGE Open, , vol. 11(3), pages 21582440211, September.
    14. Swain, Braja Bandhu, 2008. "The role of contract farming in agricultural development in globalise world: an institutional economics analysis," MPRA Paper 18683, University Library of Munich, Germany, revised 14 Sep 2009.
    15. Pandit, Arun & Pandey, N.K. & Rana, Rajesh K. & Lal, Barsati, 2009. "An Empirical Study of Gains from Potato Contract Farming," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 64(3), pages 1-12.
    16. Jian Li & Ping Qing & Wuyang Hu & Minglai Li, 2022. "Contract farming, community effect, and farmer valuation of biofortified crop varieties in China: The case of high‐zinc wheat," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 1035-1055, May.
    17. Mujawamariya, G. & Burger, K. & D’Haese, M., 2015. "Market-driven production with transaction costs outlook: Gum arabic collection systems in Senegal," Journal of Forest Economics, Elsevier, vol. 21(3), pages 111-130.
    18. Adu-Gyamfi Poku & Regina Birner & Saurabh Gupta, 2018. "Making Contract Farming Arrangements Work in Africa’s Bioeconomy: Evidence from Cassava Outgrower Schemes in Ghana," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    19. Takeshima, Hiroyuki & Adeoti, Adetola I. & Salau, Sheu, 2011. "Measuring the effect of transaction costs for investment in irrigation pumps: Application of the unobserved stochastic threshold model to the case of Nigeria," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 6(2), pages 1-26, September.
    20. Elisa da Vià, 2013. "Land grabbing in the name of development," Chapters, in: Gary Paul Green (ed.), Handbook of Rural Development, chapter 13, pages i-ii, Edward Elgar Publishing.

    More about this item

    Keywords

    Marketing;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:ags:aaae10:96826. 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: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaaeaea.html .

    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.