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Abstract

This paper assesses the relationship between agricultural productivity and market participation and performance following an increase in market prices in Mozambique. We use panel data before and after the change in price regime to identify the relative importance of market access/participation versus household and farm-level factors in explaining productivity differences. Conversely, we look at the relative importance of productivity investments and outcomes versus marketing investments in explaining household market performance. We find that between 2008, before the price increases, and 2011, there were increases in market participation rates and in the intensity of participation. Modest increases are also found in terms of productivity for all crop groups.

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