Market Competition in Export Cash Crops and Farm Income
This paper studies how the internal structure of agriculture export markets and the level of competition affect poverty and welfare in rural areas in Africa. We develop a game-theory model of supply chains in cash crop agriculture between many atomistic smallholders and a few exporters. The model provides the tools needed to simulate the changes in farm-gate prices of export crops given hypothetical changes in the structure of the supply chain. Using household surveys, we assess the poverty impacts of those changes in the value chains for twelve case studies. We investigate the average impact for all rural households, the distribution of these impacts for poor vis-à-vis non-poor households, and the differences in impacts between male- and female-headed households. Overall we find that an increase in competition among processors is good for the farmers. However, small changes to the level of competition are unlikely to have significant effects on farmers’ livelihood. We also find that, on average, non-poor, male headed household are the ones that benefit the most from an increase in competition. The introduction of outgrower contracts in our model only produces significant changes in the simulations of one of our case studies.
|Date of creation:||2011|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ivanic, Maros & Martin, Will, 2008. "Implications of higher global food prices for poverty in low-income countries," Policy Research Working Paper Series 4594, The World Bank.
- Irene Brambilla & Guido Porto, 2005.
"Market Structure, Outgrower contracs and Farm Output. Evidence from Cotton Reforms in Zambia,"
NBER Working Papers
11804, National Bureau of Economic Research, Inc.
- Irene Brambilla & Guido G. Porto, 2011. "Market structure, outgrower contracts, and farm output. Evidence from cotton reforms in Zambia," Oxford Economic Papers, Oxford University Press, vol. 63(4), pages 740-766, December.
- Pagan,Adrian & Ullah,Aman, 1999.
Cambridge University Press, number 9780521586115, November.
- Tschirley, David L. & Kabwe, Stephen, 2007. "Cotton in Zambia: 2007 Assessment of its Organization, Performance, Current Policy Initiatives, and Challenges for the Future," Food Security Collaborative Working Papers 54485, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Richard J. Sexton & Ian Sheldon & Steve McCorriston & Humei Wang, 2007. "Agricultural trade liberalization and economic development: the role of downstream market power," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 253-270, 03.
- Chad Syverson, 2004.
"Market Structure and Productivity: A Concrete Example,"
NBER Working Papers
10501, National Bureau of Economic Research, Inc.
- Chad Syverson, 2004. "Market Structure and Productivity: A Concrete Example," Journal of Political Economy, University of Chicago Press, vol. 112(6), pages 1181-1222, December.
- Chad Syverson, 2001. "Market Structure and Productivity: A Concrete Example," Working Papers 01-06, Center for Economic Studies, U.S. Census Bureau.
- Deaton, Angus, 1989. "Rice Prices and Income Distribution in Thailand: A Non-parametric Analysis," Economic Journal, Royal Economic Society, vol. 99(395), pages 1-37, Supplemen.
- Ruth Vargas Hill, 2010. "Liberalisation and Producer Price Risk: Examining Subjective Expectations in the Ugandan Coffee Market," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(4), pages 433-458, August.
- Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
- Heltberg, R. & Tarp, F., 2002.
"Agricultural supply response and poverty in Mozambique,"
Elsevier, vol. 27(2), pages 103-124, April.
- Heltberg, Rasmus & Tarp, Finn, 2001. "Agricultural Supply Response and Poverty in Mozambique," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Sundaram,Rangarajan K., 1996. "A First Course in Optimization Theory," Cambridge Books, Cambridge University Press, number 9780521497701, November.
- Rachel Kranton & Anand V. Swamy, 2008.
"Contracts, Hold-Up, and Exports: Textiles and Opium in Colonial India,"
American Economic Review,
American Economic Association, vol. 98(3), pages 967-89, June.
- Anand V. Swamy & Rachel E. Kranton, 2006. "Contracts, Hold-Up, and Exports: Textiles and Opium in Colonial India," Department of Economics Working Papers 2006-05, Department of Economics, Williams College.
- Anand V. Swamy & Rachel E. Kranton, 2006. "Contracts, Hold-Up, and Exports: Textiles and Opium in Colonial India," Center for Development Economics 2006-01, Department of Economics, Williams College.
- J. Taylor & Irma Adelman, 2003. "Agricultural Household Models: Genesis, Evolution, and Extensions," Review of Economics of the Household, Springer, vol. 1(1), pages 33-58, January.
- Christopher B. Barrett & Paul A. Dorosh, 1996. "Farmers' Welfare and Changing Food Prices: Nonparametric Evidence from Rice in Madagascar," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(3), pages 656-669.
- Saito, Katrine A. & Weidemann, C. Jean, 1990. "Agricultural extension for women farmers in Africa," Policy Research Working Paper Series 398, The World Bank.
- Wodon, Quentin & Tsimpo, Clarence & Backiny-Yetna, Prospere & Joseph, George & Adoho, Franck & Coulombe, Harold, 2008. "Potential impact of higher food prices on poverty : summary estimates for a dozen west and central African countries," Policy Research Working Paper Series 4745, The World Bank.
- Horn, H. & Levinsohn, J., 1998.
"Merger Policies and Trade Liberalization,"
420, Research Seminar in International Economics, University of Michigan.
- Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
- Gittinger, J.P. & Chernick, S. & Horenstein, N.R. & Saito, K., 1990. "Household Food Security And The Role Of Women," World Bank - Discussion Papers 96, World Bank.
- Sundaram,Rangarajan K., 1996. "A First Course in Optimization Theory," Cambridge Books, Cambridge University Press, number 9780521497190, November.
- de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
- Saito, K.A. & Weidermann, C.J., 1990. "Agricultural Extension For Women Farmers In Africa," World Bank - Discussion Papers 103, World Bank.
- Horenstein, Nadine R., 1989. "Women and food security in Kenya," Policy Research Working Paper Series 232, The World Bank.
- Steven C. Salop, 1979. "Monopolistic Competition with Outside Goods," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 141-156, Spring.
- Lopez, Ramon & Nash, John & Stanton, Julie, 1995. "Adjustment and poverty in Mexican agriculture : how farmers'wealth affects supply response," Policy Research Working Paper Series 1494, The World Bank.
- Budd, John W, 1993. "Changing Food Prices and Rural Welfare: A Nonparametric Examination of the Cote d'Ivoire," Economic Development and Cultural Change, University of Chicago Press, vol. 41(3), pages 587-603, April.
- Jiggins, Janice, 1989. "How poor women earn income in sub-Saharan Africa and what works against them," World Development, Elsevier, vol. 17(7), pages 953-963, July.
- David Tschirley & Colin Poulton & Patrick Labaste, 2009. "Organization and Performance of Cotton Sectors in Africa : Learning from Reform Experience," World Bank Publications, The World Bank, number 2604, August.
- Sahn, David E & Sarris, Alexander H, 1991. "Structural Adjustment and the Welfare of Rural Smallholders: A Comparative Analysis from Sub-Saharan Africa," World Bank Economic Review, World Bank Group, vol. 5(2), pages 259-89, May.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:126159. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.