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Agricultural Supply Response and Smallholders Market Participation: the Case of Cambodia

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  • Md Shafiul Azam
  • Katsushi Imai
  • Raghav Gaiha

Abstract

This paper explores the key causal factors behind agricultural supply response and farmers' market participation decisions in Cambodia. A stylized farm household model with market imperfections is considered and a two-step decision making process is outlined. Farmers decide, first, whether or not to participate in the market and then they decide how much to sell. The model is estimated using a Heckman type regression model. We compute the unconditional marginal effects for the full sample as well as for the samples for the small and large holders separately. Non-price factors such as risk, technology and rural infrastructure are important determinants of commercialization of agriculture in Cambodia. The marginal effects for the small and large holders differ substantially both in quantitative and qualitative terms. This suggests differential treatment in terms of intervention and incentives for small and large holders would be more effective to promote market access.
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Suggested Citation

  • Md Shafiul Azam & Katsushi Imai & Raghav Gaiha, 2012. "Agricultural Supply Response and Smallholders Market Participation: the Case of Cambodia," The School of Economics Discussion Paper Series 1208, Economics, The University of Manchester.
  • Handle: RePEc:man:sespap:1208
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Moono, Lizzen, 2015. "An Analysis of Factors Influencing Market Participation Among Smallholder Rice Farmers in Western Province, Zambia," Research Theses 243459, Collaborative Masters Program in Agricultural and Applied Economics.
    2. Seng, Kimty, 2017. "Considering the Effects of Mobile Phones on Financial Inclusion in Cambodia," MPRA Paper 82225, University Library of Munich, Germany, revised 27 Oct 2017.
    3. Kimty Seng, 2015. "Welfare Effects of Diversification on Farm Households in Cambodia," Economics Bulletin, AccessEcon, vol. 35(4), pages 2645-2663.
    4. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.
    5. CAMARA, Alhassane, 2017. "Market participation of smallholders and the role of the upstream segment: evidence from Guinea," MPRA Paper 78903, University Library of Munich, Germany, revised May 2017.
    6. Narayan Khanal & Keshav Maharjan, 2014. "Factors influencing farmers’ behavior in rice seed selling in the market: a case study in the Tarai region of Nepal d," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-11, December.
    7. Raghav Gaiha & Md Shafiul Azam & Samuel Annim & Katsushi S. Imai, 2012. "Agriculture, Markets and Poverty - A Comparative Analysis of Laos and Cambodia," Discussion Paper Series DP2012-28, Research Institute for Economics & Business Administration, Kobe University.

    More about this item

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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