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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
    DOI: 10.22004/ag.econ.6145
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    2. Rui Benfica & Duncan Boughton & Rafael Uaiene & Bordalo Mouzinho, 2017. "Food crop marketing and agricultural productivity in a high price environment: evidence and implications for Mozambique," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(6), pages 1405-1418, December.
    3. Sauer, J. & Davidova, S. & Gorton, M., 2013. "Land Fragmentation and Market Integration- Heterogenous Technologies in Kosovo," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 48, March.
    4. Evans Ngenoh & Barnabas K. Kurgat & Hillary K. Bett & Sindu W. Kebede & Wolfgang Bokelmann, 2019. "Determinants of the competitiveness of smallholder African indigenous vegetable farmers in high-value agro-food chains in Kenya: A multivariate probit regression analysis," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-17, December.
    5. Sophia Davidova & Lena Fredriksson & Alastair Bailey, 2009. "Subsistence and semi‐subsistence farming in selected EU new member states," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 733-744, November.
    6. Salau, S. & Omotesho, O. & Muhammad-Lawal, A., 2018. "Agricultural Commercialization, Fertilizer Use and Non-Farm Employment: What Options for Smallholder Farmers in Nigeria?," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277180, International Association of Agricultural Economists.
    7. 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.
    8. 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).
    9. 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).
    10. 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.
    11. Kotamraju, Nirmal Ravi Kumar & Babu, Suresh Chandra & Maligireddy, Jagan Mohan Reddy, 2021. "Impact of Market Reforms on Technology Adoption and Profitability: The Case of Tomato Farmers in India," Asian Journal of Applied Economics, Kasetsart University, Center for Applied Economics Research, vol. 28(2).
    12. Zezza, Alberto & Davis, Benjamin & Azzarri, Carlo & Covarrubias, Katia & Tasciotti, Luca & Anríquez, Gustavo, 2008. "The impact of rising food prices on the poor," ESA Working Papers 289027, Food and Agriculture Organization of the United Nations, Agricultural Development Economics Division (ESA).
    13. B.C. Okoye & A. Abass & B. Bachwenkizi & G. Asumugha & B. Alenkhe & R. Ranaivoson & R. Randrianarivelo & N. Rabemanantsoa & I. Ralimanana, 2016. "Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1143597-114, December.
    14. 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.

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