Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso
Financial market imperfections remain pervasive in developing countries, constraining potentially profitable investment decisions, especially for rural smallholder farmers. Warrantage is an innovative model of rural finance with the potential to overcome credit, storage, and commitment constraints t...
| Autores principales: | , |
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| Formato: | Artículo preliminar |
| Lenguaje: | Inglés |
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World Bank
2020
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| Acceso en línea: | https://hdl.handle.net/10568/171262 |
| _version_ | 1855535201908686848 |
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| author | Delavallade, Clara Anne Godlonton, Susan |
| author_browse | Delavallade, Clara Anne Godlonton, Susan |
| author_facet | Delavallade, Clara Anne Godlonton, Susan |
| author_sort | Delavallade, Clara Anne |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | Financial market imperfections remain pervasive in developing countries, constraining potentially profitable investment decisions, especially for rural smallholder farmers. Warrantage is an innovative model of rural finance with the potential to overcome credit, storage, and commitment constraints through a localized inventory credit scheme. Exploiting random variations in household access to warrantage and intensity of access across villages, this paper studies the direct impact of this scheme on beneficiaries as well as its spillover effects. Take-up of storage is high (94 percent), while credit take-up is moderate (38 percent). Households with access to warrantage primarily store sorghum and maize and sell their production over an extended period of time, earning higher average prices and resulting in higher sales revenue ($248, or 33 percent, on average). Increased incomes are spent on long-term investments, including human capital expenditures (education), livestock purchases, and investment in agricultural inputs for the subsequent year. |
| format | Artículo preliminar |
| id | CGSpace171262 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2020 |
| publishDateRange | 2020 |
| publishDateSort | 2020 |
| publisher | World Bank |
| publisherStr | World Bank |
| record_format | dspace |
| spelling | CGSpace1712622025-02-19T14:36:32Z Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso Delavallade, Clara Anne Godlonton, Susan crops smallholders farmers rural areas rural finance storage credit food prices price volatility prices Financial market imperfections remain pervasive in developing countries, constraining potentially profitable investment decisions, especially for rural smallholder farmers. Warrantage is an innovative model of rural finance with the potential to overcome credit, storage, and commitment constraints through a localized inventory credit scheme. Exploiting random variations in household access to warrantage and intensity of access across villages, this paper studies the direct impact of this scheme on beneficiaries as well as its spillover effects. Take-up of storage is high (94 percent), while credit take-up is moderate (38 percent). Households with access to warrantage primarily store sorghum and maize and sell their production over an extended period of time, earning higher average prices and resulting in higher sales revenue ($248, or 33 percent, on average). Increased incomes are spent on long-term investments, including human capital expenditures (education), livestock purchases, and investment in agricultural inputs for the subsequent year. 2020 2025-01-29T12:57:55Z 2025-01-29T12:57:55Z Working Paper https://hdl.handle.net/10568/171262 en Open Access World Bank Delavallade, Clara Anne; and Godlonton, Susan. 2020. Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso. World Bank Policy Research Working Paper No. 9248. https://hdl.handle.net/10986/33795 |
| spellingShingle | crops smallholders farmers rural areas rural finance storage credit food prices price volatility prices Delavallade, Clara Anne Godlonton, Susan Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso |
| title | Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso |
| title_full | Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso |
| title_fullStr | Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso |
| title_full_unstemmed | Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso |
| title_short | Locking crops to unlock investment: Experimental evidence on warrantage in Burkina Faso |
| title_sort | locking crops to unlock investment experimental evidence on warrantage in burkina faso |
| topic | crops smallholders farmers rural areas rural finance storage credit food prices price volatility prices |
| url | https://hdl.handle.net/10568/171262 |
| work_keys_str_mv | AT delavalladeclaraanne lockingcropstounlockinvestmentexperimentalevidenceonwarrantageinburkinafaso AT godlontonsusan lockingcropstounlockinvestmentexperimentalevidenceonwarrantageinburkinafaso |