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Commercialisation and Poverty in Tanzania: Household-level Analysis

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  • Elina Eskola

    (Department of Economics, University of Copenhagen)

Abstract

Data from a recent Tanzanian household survey are used to investigate households’ connectedness to market economy i.e. commercialisation. The study puts emphasis on facilitating access to the nearest markets and market information as means to enhance commercialisation. Commercialisation and total consumption are found to be highly correlated and mutually reinforcing. The more commercialised the household is, the higher probability it has to be well off and thus enhanced commercialisation should be encouraged as a way to increase households’ welfare. The distance to the nearest market and the availability of market information are found to be significant factors in households’ degree of commercialisation. However, the importance of large regional fixed effects highlights the importance of the structural barriers for trade in Tanzania.

Suggested Citation

  • Elina Eskola, 2005. "Commercialisation and Poverty in Tanzania: Household-level Analysis," Discussion Papers 05-27, University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:kuiedp:0527
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    File URL: http://www.econ.ku.dk/english/research/publications/wp/2005/0527.pdf/
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    References listed on IDEAS

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    1. van de Walle, Dominique, 2002. "Choosing Rural Road Investments to Help Reduce Poverty," World Development, Elsevier, vol. 30(4), pages 575-589, April.
    2. Dominique van de Walle, 2009. "Impact evaluation of rural road projects," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 1(1), pages 15-36.
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    Cited by:

    1. Asante, S. B. & Osei-Asare, Y. B. & Kuwornu, J. K. M., 2016. "Smallholder Maize Farmers’ Food Consumption Expenditures in Ghana: The Mediating Role of Commercialization," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(3), September.
    2. 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.
    3. Osmani, Ataul Gani & Hossain, Elias, 2015. "Market Participation Decision Of Smallholder Farmers And Its Determinants In Bangladesh," Economics of Agriculture, Institute of Agricultural Economics, vol. 62(1).
    4. Momanyi, Denis, 2016. "Analysis of the Marketing Behavior of African Indigenous Leafy Vegetables Among Smallholder Farmers in Nyamira County, Kenya," Research Theses 243443, Collaborative Masters Program in Agricultural and Applied Economics.

    More about this item

    Keywords

    commercialisation; poverty; transaction cost; household model; Tanzania;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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