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Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample

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  • Rios, Ana R.
  • Masters, William A.
  • Shively, Gerald E.

Abstract

We build upon international trade literature to analyze the direction of causality between market participation and productivity. Cross-country household data from Tanzania, Vietnam and Guatemala are used in a 2SLS approach with market participation and productivity as endogenous variables. Results indicate that households with higher productivity tend to participate in agricultural markets regardless of market access factors. In contrast, having better market access does not necessarily lead to higher productivity. This finding suggests that investments in market access infrastructure provide minimal, if any, improvements in agricultural productivity; whereas programs targeted at enhancements in farm structure and capital have the potential to increase both productivity and market participation.

Suggested Citation

  • 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).
  • Handle: RePEc:ags:aaea08:6145
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    Cited by:

    1. 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).
    2. Benfica, Rui M.S. & Boughton, Duncan & Mouzinho, Bordalo & Uaiene, Rafael, 2014. "Food Crop Marketing and Agricultural Productivity in a High Price Environment: Evidence and Implications for Mozambique," Food Security Collaborative Working Papers 176722, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    3. Sauer, Johannes & Davidova, Sophia & Gorton, Matthew, 2012. "Heterogeneous Technologies as an Answer to Market and Price Risk: The Case of Kosovo," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122509, European Association of Agricultural Economists.
    4. Agwu, Nnanna Mba & Anyanwu, Cynthia Ijeoma & Mendie, E.I., 2013. "Socio-Economic Determinants of Commercialization Among Smallholder Farmers in Abia State, Nigeria," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161518, African Association of Agricultural Economists (AAAE).
    5. 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).
    6. 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.
    7. Alberto Zezza & Benjamin Davis & Carlo Azzarri & Katia Covarrubias & Luca Tasciotti & Gustavo Anriquez, 2008. "The Impact of Rising Food Prices on the Poor," Working Papers 08-07, Agricultural and Development Economics Division of the Food and Agriculture Organization of the United Nations (FAO - ESA).

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    Keywords

    International Relations/Trade; Marketing; Productivity Analysis;

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