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Please use this identifier to cite or link to this item: http://purl.umn.edu/47656

Title: Factors enhancing market participation by small-scale cotton farmers
Authors: Randela, Rendani
Alemu, Zerihun Gudeta
Groenewald, Jan A.
Authors (Email): Randela, Rendani (Rendani.Randela@Treasury.gov.za)
Alemu, Z.G. (alemuzg.sci@ufs.ac.za)
Groenewald, J.A. (Groenewald@netralink.com)
Keywords: market participation
household commercialisation
logistic regression
transaction costs
Issue Date: 2008-12
Series/Report no.: Volume 47
Number 4
Abstract: This paper uses data collected from 177 small-scale farming households in Mpumalanga in an effort to identify factors that significantly influence the degree of commercialisation or market participation. A logistic regression model was applied within the transaction costs framework. Results support the hypothesis that transactions costs rank among the main determinants of commercialisation. The following variables were statistically significant: age, ability to speak/understand English, region, ownership of transport, access to market information, distance to market, dependency ratio, trust, land size and ownership of livestock. Increases in the latter four have negative effects on commercialisation. The negative relationship between land size and commercialisation probably indicates that increased market participation is also a function of input (land) productivity.
URI: http://purl.umn.edu/47656
Institution/Association: Agrekon>Volume 47, Issue 4, December 2008
Total Pages: 18
From Page: 451
To Page: 469
Collections:Volume 47, Issue 4, December 2008

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