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    Determinants of smallholders farmers participation in banana markets in central Africa: the role of transaction costs

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    Date
    2010
    Author
    Ouma, Emily A.
    Jagwe, J.
    Obare, G.A.
    Abele, S.
    Type
    Journal Article
    Target Audience
    Scientists
    Metadata
    Show full item record
    Abstract/Description
    A bivariate probit model was employed to jointly and separately estimate banana market participation decisions of buying and selling households in Rwanda and Burundi using household survey data. Selectivity bias was corrected for in estimating the transacted volumes using Heckman’s procedure. The results showed that transaction cost related factors such as geographical location of households, market information sources, and travel time to the nearest urban centre influence market participation. Non price related factors such as security of land tenure, labor availability, off farm income, gender of the household head and years of farming experience had a significant influence on the transacted volumes. Output prices had a significant effect on sales volume, providing incentives for increased supply by sellers. Generally, the findings suggest that policies aimed at investments in rural road infrastructure, collective marketing and value addition of banana products may provide a potential avenue for mitigating transactions costs and enhancing market participation and production of marketed surplus by rural households.
    https://dx.doi.org/10.1111/j.1574-0862.2009.00429.x
    Multi standard citation
    Permanent link to this item
    https://hdl.handle.net/20.500.12478/2387
    Digital Object Identifier (DOI)
    https://dx.doi.org/10.1111/j.1574-0862.2009.00429.x
    IITA Subjects
    Banana; Markets
    Agrovoc Terms
    Smallholders; Market Participation; Transaction Costs; Bananas
    Regions
    Africa; East Africa
    Countries
    Burundi
    Journals
    Agricultural Economics
    Collections
    • Journal and Journal Articles4835
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