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Abstract

The transformation of the global agrifood system is characterized by the increasing importance of food safety and quality standards. This trend is challenging farmers in countries like Guatemala, who often lack necessary skills and assets. We contribute to the ongoing discussion about the impact of standards on smallholder farmers by considering impact heterogeneity. By using propensity score matching techniques, we show that farmers with a higher level of financial literacy seem to benefit more from standard adoption than those with lower levels of financial literacy. Our results hold important practical implications for exporters, standard setters and development organizations.

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