Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar

High transaction costs deter entry of small farmers into the market. With the data from 240 smallholder cassava farmers in Central Madagascar, this study identified strategies to promote successful smallholder commercialization. The coefficients for membership of cooperatives, native of community an...

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Main Authors: Okoye, B.C., Abass, A., Bachwenkizi, B., Asumugha, G.N., Alenkhe, B., Ranaivoson, R., Randrianarivelo, R., Rabemanantsoa, N., Ralimanana, I.
Format: Journal Article
Language:Inglés
Published: Informa UK Limited 2016
Subjects:
Online Access:https://hdl.handle.net/10568/72494
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author Okoye, B.C.
Abass, A.
Bachwenkizi, B.
Asumugha, G.N.
Alenkhe, B.
Ranaivoson, R.
Randrianarivelo, R.
Rabemanantsoa, N.
Ralimanana, I.
author_browse Abass, A.
Alenkhe, B.
Asumugha, G.N.
Bachwenkizi, B.
Okoye, B.C.
Rabemanantsoa, N.
Ralimanana, I.
Ranaivoson, R.
Randrianarivelo, R.
author_facet Okoye, B.C.
Abass, A.
Bachwenkizi, B.
Asumugha, G.N.
Alenkhe, B.
Ranaivoson, R.
Randrianarivelo, R.
Rabemanantsoa, N.
Ralimanana, I.
author_sort Okoye, B.C.
collection Repository of Agricultural Research Outputs (CGSpace)
description High transaction costs deter entry of small farmers into the market. With the data from 240 smallholder cassava farmers in Central Madagascar, this study identified strategies to promote successful smallholder commercialization. The coefficients for membership of cooperatives, native of community and farming experience, have a direct relationship with decision to participate in the market and which is significant at 1% level and road condition to the nearest town is good at 10% level. The coefficients for age, distance to the nearest town and distance from the farm to the market have an indirect relationship with decision to participate in the market and significant at 5, 10 and 1% levels, respectively. The results also show that the coefficients for personal means of transportation and marketing experience have a direct relationship with decision to sell cassava off-farm and at 10 and 1% level of significance, respectively, while distance to the nearest town and distance from the farm to the market had an indirect relationship with decision to sell off-farm at 5% level of significance each and cost of transportation at 1% level. The study raises policy issues which might reduce these transaction costs by providing more market outlets, better rural infrastructure and also bulking centres.
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spelling CGSpace724942025-11-11T10:14:59Z Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar Okoye, B.C. Abass, A. Bachwenkizi, B. Asumugha, G.N. Alenkhe, B. Ranaivoson, R. Randrianarivelo, R. Rabemanantsoa, N. Ralimanana, I. transaction costs cassava madagascar economics small farmers High transaction costs deter entry of small farmers into the market. With the data from 240 smallholder cassava farmers in Central Madagascar, this study identified strategies to promote successful smallholder commercialization. The coefficients for membership of cooperatives, native of community and farming experience, have a direct relationship with decision to participate in the market and which is significant at 1% level and road condition to the nearest town is good at 10% level. The coefficients for age, distance to the nearest town and distance from the farm to the market have an indirect relationship with decision to participate in the market and significant at 5, 10 and 1% levels, respectively. The results also show that the coefficients for personal means of transportation and marketing experience have a direct relationship with decision to sell cassava off-farm and at 10 and 1% level of significance, respectively, while distance to the nearest town and distance from the farm to the market had an indirect relationship with decision to sell off-farm at 5% level of significance each and cost of transportation at 1% level. The study raises policy issues which might reduce these transaction costs by providing more market outlets, better rural infrastructure and also bulking centres. 2016-12-31 2016-03-08T13:00:01Z 2016-03-08T13:00:01Z Journal Article https://hdl.handle.net/10568/72494 en Open Access application/pdf Informa UK Limited Okoye, B. C., Abass, A., Bachwenkizi, B., Asumugha, G., Alenkhe, B., Ranaivoson, R., Randrianarivelo, R., Rabemanantsoa, N. & Ralimanana, I. (2016). Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar. Cogent Economics & Finance, 4(1), 1-20
spellingShingle transaction costs
cassava
madagascar
economics
small farmers
Okoye, B.C.
Abass, A.
Bachwenkizi, B.
Asumugha, G.N.
Alenkhe, B.
Ranaivoson, R.
Randrianarivelo, R.
Rabemanantsoa, N.
Ralimanana, I.
Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar
title Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar
title_full Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar
title_fullStr Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar
title_full_unstemmed Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar
title_short Effect of transaction costs on market participation among smallholder cassava farmers in Central Madagascar
title_sort effect of transaction costs on market participation among smallholder cassava farmers in central madagascar
topic transaction costs
cassava
madagascar
economics
small farmers
url https://hdl.handle.net/10568/72494
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