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Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania

A relatively large body of literature has documented the welfare effects of smallholder farmers’ participation in single-commodity output markets. However, limited empirical evidence is available when smallholder farmers participate in multiple-commodities output markets. We tried to fill this gap i...

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Detalles Bibliográficos
Autores principales: Manda, Julius, Azzarri, Carlo, Feleke, Shiferaw, Kotu, Bekele, Claessens, Lieven, Bekunda, Mateete
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2021
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8101961/
https://www.ncbi.nlm.nih.gov/pubmed/33956819
http://dx.doi.org/10.1371/journal.pone.0250848
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author Manda, Julius
Azzarri, Carlo
Feleke, Shiferaw
Kotu, Bekele
Claessens, Lieven
Bekunda, Mateete
author_facet Manda, Julius
Azzarri, Carlo
Feleke, Shiferaw
Kotu, Bekele
Claessens, Lieven
Bekunda, Mateete
author_sort Manda, Julius
collection PubMed
description A relatively large body of literature has documented the welfare effects of smallholder farmers’ participation in single-commodity output markets. However, limited empirical evidence is available when smallholder farmers participate in multiple-commodities output markets. We tried to fill this gap in the literature by estimating the impacts of smallholder farmers’ contemporaneous participation in both maize and legume markets vis-à-vis in only maize or legume markets using household-level data from Tanzania. Applying a multinomial endogenous switching regression model that allows controlling for observed and unobserved heterogeneity associated with market participation in single-commodity and multiple-commodity markets, results showed that smallholder farmers’ participation in both single–and multiple–commodity markets was positively and significantly associated with household income and food security. Moreover, the greatest benefits were obtained when farmers participated in multiple-commodity markets, suggesting the importance of policies promoting diversification in crop income sources to increase welfare and food security. Our findings also signal the complementary–rather than substitute–nature of accessing multiple-commodity markets for enhancing household livelihoods under a specialization strategy. Finally, important policy implications are suggested, from promoting and supporting public infrastructure investments to expanding road networks to reduce transportation costs, especially in remote communities, to enhance smallholder farmer access to profitable maize and legume markets in Tanzania.
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spelling pubmed-81019612021-05-17 Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania Manda, Julius Azzarri, Carlo Feleke, Shiferaw Kotu, Bekele Claessens, Lieven Bekunda, Mateete PLoS One Research Article A relatively large body of literature has documented the welfare effects of smallholder farmers’ participation in single-commodity output markets. However, limited empirical evidence is available when smallholder farmers participate in multiple-commodities output markets. We tried to fill this gap in the literature by estimating the impacts of smallholder farmers’ contemporaneous participation in both maize and legume markets vis-à-vis in only maize or legume markets using household-level data from Tanzania. Applying a multinomial endogenous switching regression model that allows controlling for observed and unobserved heterogeneity associated with market participation in single-commodity and multiple-commodity markets, results showed that smallholder farmers’ participation in both single–and multiple–commodity markets was positively and significantly associated with household income and food security. Moreover, the greatest benefits were obtained when farmers participated in multiple-commodity markets, suggesting the importance of policies promoting diversification in crop income sources to increase welfare and food security. Our findings also signal the complementary–rather than substitute–nature of accessing multiple-commodity markets for enhancing household livelihoods under a specialization strategy. Finally, important policy implications are suggested, from promoting and supporting public infrastructure investments to expanding road networks to reduce transportation costs, especially in remote communities, to enhance smallholder farmer access to profitable maize and legume markets in Tanzania. Public Library of Science 2021-05-06 /pmc/articles/PMC8101961/ /pubmed/33956819 http://dx.doi.org/10.1371/journal.pone.0250848 Text en © 2021 Manda et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Manda, Julius
Azzarri, Carlo
Feleke, Shiferaw
Kotu, Bekele
Claessens, Lieven
Bekunda, Mateete
Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania
title Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania
title_full Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania
title_fullStr Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania
title_full_unstemmed Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania
title_short Welfare impacts of smallholder farmers’ participation in multiple output markets: Empirical evidence from Tanzania
title_sort welfare impacts of smallholder farmers’ participation in multiple output markets: empirical evidence from tanzania
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8101961/
https://www.ncbi.nlm.nih.gov/pubmed/33956819
http://dx.doi.org/10.1371/journal.pone.0250848
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