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Supermarkets, farm household income, and poverty: Insights from Kenya


  • Elizaphan J.O. Rao

    (Georg-August University Goettingen)

  • Matin Qaim

    (Georg-August University Goettingen)


The expansion of supermarkets in developing countries may have far-reaching consequences for poverty and rural development. While previous studies have compared farm profits between participants and non-participants in supermarket channels, wider household welfare effects have hardly been analyzed. Moreover, structural differences between the two groups have been ignored. We address these issues by using endogenous switching regression and building on a survey of vegetable farmers in Kenya. Participation in supermarket channels is associated with a 50% gain in average household income, leading to significant poverty reduction. To realize these benefits on a larger scale will require institutional and policy support.

Suggested Citation

  • Elizaphan J.O. Rao & Matin Qaim, 2010. "Supermarkets, farm household income, and poverty: Insights from Kenya," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 28, Courant Research Centre PEG.
  • Handle: RePEc:got:gotcrc:028

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    Cited by:

    1. Nassul S. Kabunga & Thomas Dubois & Matin Qaim, 2012. "Yield Effects of Tissue Culture Bananas in Kenya: Accounting for Selection Bias and the Role of Complementary Inputs," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 444-464, June.
    2. Herforth, Nico & Theuvsen, Ludwig & Vásquez, Wilson & Wollni, Meike, 2015. "Understanding participation in modern supply chains under a social network perspective – evidence from blackberry farmers in the Ecuadorian Andes," GlobalFood Discussion Papers 197709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    3. Jalang'o, Dorcas Anyango & Otieno, David Jakinda & Kosura, Willis-Oluoch, 2016. "Factors influencing smallholder farmers’ participation in domestic high value markets for African Indigenous Vegetables in rural Kenya," 2016 Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246390, African Association of Agricultural Economists (AAAE).
    4. Jalang'o, Dorcas Anyango, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Research Theses 276431, Collaborative Masters Program in Agricultural and Applied Economics.
    5. Hichaambwa, Munguzwe & Chamberlin, Chamberlin & Kabwe, Stephen, 2015. "Is Smallholder Horticulture the Unfunded Poverty Reduction Option in Zambia? A Comparative Assessment of Welfare Effects of Participation in Horticultural and Maize Markets," Food Security Collaborative Working Papers 207022, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    6. Jalang’o, Dorcas Anyango & Otieno, David Jakinda & Oluoch-Kosura, Willis, 2016. "Economic Analysis Of Smallholder Farmers’ Participation In Domestic High-Value Markets For Indigenous Vegetables In Siaya County, Kenya," Dissertations and Theses 269269, University of Nairobi, Department of Agricultural Economics.
    7. Langat, B.K. & Ngéno, V.K. & Nyangweso, Philip M. & Mutwol, M. J. & Gohole, L. & Yaninek, S., 2013. "Drivers of Technology Adoption in a Subsistence Economy: The case of Tissue Culture Bananas in Western Kenya," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161444, African Association of Agricultural Economists (AAAE).
    8. Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.

    More about this item


    supermarkets; household income; sample selection; endogenous switching regression; Kenya; Africa;

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