IDEAS home Printed from https://ideas.repec.org/a/ags/ccsesa/309786.html
   My bibliography  Save this article

Welfare Impact of Moringa Market Participation in Southern Ethiopia

Author

Listed:
  • Meskel, Tezera W.
  • Ketema, Mengistu
  • Haji, Jema
  • Zemedu, Lemma

Abstract

Increasing demand for Moringa stenopetala suggests that great opportunities exist for a supply-side response amongst rural smallholder farmers, especially in Southern Ethiopia. It needs evidence to understand whether or not smallholders farmers participate or if they benefit from participation in these new market opportunities. This study analyzes the welfare impact of smallholder farmers‟ participation in Moringa market (measured in terms of crop income, per-capita annual consumption expenditure and per capita daily calorie intake) in Segen area people zone of Southern Ethiopia. Cross-sectional data from 385 randomly selected smallholder farmers were used in the analysis. Endogenous Switching Regression(ESR) model that accounts for selection bias was used in impact assessment. This was further expanded with the generalized propensity score (GPS) approach to evaluate the effects of level of market participation on the response of the outcome variables. Results from ESR shows that demographic, institutional, socio-economic, and market factors affect participation decision and welfare of the farm households. Overall, Moringa market participation have a positive and significant impact on rural farmers welfare, with substantial differencial impacts between groups. Results from GPS, also shows the same as the welfare of the households has increased with the level of Moringa market participation. Policies aimed at reducing the transaction costs of accessing markets, promoting the tree via different medias, working on rural institution capacity building, encouraging and assisting Moringa associations, designing appropriate support from different stakeholders, encouraging market linkages among diverse market players, and providing farmers with the chance of attending basic education are critical to the improvement of household welfare.

Suggested Citation

  • Meskel, Tezera W. & Ketema, Mengistu & Haji, Jema & Zemedu, Lemma, 2020. "Welfare Impact of Moringa Market Participation in Southern Ethiopia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 9(3).
    • Handle: RePEc:ags:ccsesa:309786
    DOI: 10.22004/ag.econ.309786
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/309786/files/5eefffb09eae8.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.309786?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kluve, Jochen & Schneider, Hilmar & Uhlendorff, Arne & Zhao, Zhong, 2007. "Evaluating Continuous Training Programs Using the Generalized Propensity Score," IZA Discussion Papers 3255, Institute of Labor Economics (IZA).
    2. Dillon, Brian & Barrett, Christopher B., 2017. "Agricultural factor markets in Sub-Saharan Africa: An updated view with formal tests for market failure," Food Policy, Elsevier, vol. 67(C), pages 64-77.
    3. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    4. James Heckman & Justin L. Tobias & Edward Vytlacil, 2001. "Four Parameters of Interest in the Evaluation of Social Programs," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 210-223, October.
    5. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
    6. James Heckman & Justin L. Tobias & Edward Vytlacil, 2001. "Four Parameters of Interest in the Evaluation of Social Programs," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 210-223, October.
    7. Olwande, John & Smale, Melinda & Mathenge, Mary K. & Place, Frank & Mithöfer, Dagmar, 2015. "Agricultural marketing by smallholders in Kenya: A comparison of maize, kale and dairy," Food Policy, Elsevier, vol. 52(C), pages 22-32.
    8. Shiferaw, Bekele & Kassie, Menale & Jaleta, Moti & Yirga, Chilot, 2014. "Adoption of improved wheat varieties and impacts on household food security in Ethiopia," Food Policy, Elsevier, vol. 44(C), pages 272-284.
    9. Jochen Kluve & Hilmar Schneider & Arne Uhlendorff & Zhong Zhao, 2012. "Evaluating continuous training programmes by using the generalized propensity score," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(2), pages 587-617, April.
    10. Seng, Kimty, 2016. "The Effects of Market Participation on Farm Households’ Food Security in Cambodia: An endogenous switching approach," MPRA Paper 69669, University Library of Munich, Germany.
    11. Frank E. Mmbando & Edilegnaw Z. Wale & Lloyd J.S. Baiyegunhi, 2015. "Determinants of smallholder farmers' participation in maize and pigeonpea markets in Tanzania," Agrekon, Taylor & Francis Journals, vol. 54(1), pages 96-119, March.
    12. Khonje, Makaiko & Mkandawire, Petros & Manda, Julius & Alene, Arega, 2015. "Analysis of adoption and impacts of improved cassava varieties," 2015 Conference, August 9-14, 2015, Milan, Italy 211842, International Association of Agricultural Economists.
    13. Jochen Kluve & Hilmar Schneider & Arne Uhlendorff & Zhong Zhao, 2012. "Evaluating continuous training programmes by using the generalized propensity score," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 175(2), pages 587-617, April.
    14. David W. Carter & J. Walter Milon, 2005. "Price Knowledge in Household Demand for Utility Services," Land Economics, University of Wisconsin Press, vol. 81(2).
    15. Frank Mmbando & Edilegnaw Wale & Lloyd Baiyegunhi, 2015. "Welfare impacts of smallholder farmers’ participation in maize and pigeonpea markets in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 7(6), pages 1211-1224, December.
    16. Khonje, Makaiko & Manda, Julius & Alene, Arega D. & Kassie, Menale, 2015. "Analysis of Adoption and Impacts of Improved Maize Varieties in Eastern Zambia," World Development, Elsevier, vol. 66(C), pages 695-706.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2018. "The impacts of postharvest storage innovations on food security and welfare in Ethiopia," Food Policy, Elsevier, vol. 75(C), pages 52-67.
    2. Bairagi, Subir & Bhandari, Humnath & Kumar Das, Subrata & Mohanty, Samarendu, 2021. "Flood-tolerant rice improves climate resilience, profitability, and household consumption in Bangladesh," Food Policy, Elsevier, vol. 105(C).
    3. Gao, Yang & Niu, Ziheng & Yang, Haoran & Yu, Lili, 2019. "Impact of green control techniques on family farms' welfare," Ecological Economics, Elsevier, vol. 161(C), pages 91-99.
    4. Benali, Marwan & Brümmer, Bernhard & Afari-Sefa, Victor, 2017. "Small producer participation in export vegetable supply chains and poverty: evidence from different export schemes in Tanzania," GlobalFood Discussion Papers 262583, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Priyanka Parvathi, 2018. "Does mixed crop‐livestock farming lead to less diversified diets among smallholders? Evidence from Laos," Agricultural Economics, International Association of Agricultural Economists, vol. 49(4), pages 497-509, July.
    6. Armel Nonvide, Gbêtondji Melaine, 2023. "Impact of information and communication technologies on agricultural households’ welfare in Benin," Telecommunications Policy, Elsevier, vol. 47(6).
    7. Yang, Jinqiu & Hong, Yongmiao & Ma, Shuangge, 2016. "Impact of the new health care reform on hospital expenditure in China: A case study from a pilot city," China Economic Review, Elsevier, vol. 39(C), pages 1-14.
    8. Salvatore Falco & Marcella Veronesi, 2018. "Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia," Natural Resource Management and Policy, in: Leslie Lipper & Nancy McCarthy & David Zilberman & Solomon Asfaw & Giacomo Branca (ed.), Climate Smart Agriculture, pages 497-526, Springer.
    9. Emiliano Magrini & Mauro Vigani, 2016. "Technology adoption and the multiple dimensions of food security: the case of maize in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 707-726, August.
    10. Julius Manda & Cornelis Gardebroek & Makaiko Khonje & Arega Alene & Munyaradzi Mutenje & Menale Kassie, 2016. "Determinants of child nutritional status in the eastern province of Zambia: the role of improved maize varieties," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(1), pages 239-253, February.
    11. Tufa, Adane Hirpa & Alene, Arega D. & Manda, Julius & Akinwale, M.G. & Chikoye, David & Feleke, Shiferaw & Wossen, Tesfamicheal & Manyong, Victor, 2019. "The productivity and income effects of adoption of improved soybean varieties and agronomic practices in Malawi," World Development, Elsevier, vol. 124(C), pages 1-1.
    12. repec:mth:jas888:v:7:y:2019:i:1:p:82-102 is not listed on IDEAS
    13. Bairagi, Subir & Mishra, Ashok K. & Durand-Morat, Alvaro, 2020. "Climate risk management strategies and food security: Evidence from Cambodian rice farmers," Food Policy, Elsevier, vol. 95(C).
    14. Doris Läpple & Thia Hennessy & Carol Newman, 2013. "Quantifying the Economic Return to Participatory Extension Programmes in Ireland: an Endogenous Switching Regression Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 467-482, June.
    15. Yigezu, Yigezu A. & Abbas, Enas & Swelam, Atef & Sabry, Sami R.S. & Moustafa, Moustafa A. & Halila, Habib, 2021. "Socioeconomic, biophysical, and environmental impacts of raised beds in irrigated wheat: A case study from Egypt," Agricultural Water Management, Elsevier, vol. 249(C).
    16. Raghu, Prabhakaran T & Das, Sukanya & Veettil, Prakashan Chellattan, 2021. "Smallholder Adaptation to Flood Risks: Adoption and Impact of Swarna-Sub1 in Eastern India," 2021 Conference, August 17-31, 2021, Virtual 315867, International Association of Agricultural Economists.
    17. Seng, Kimty, 2021. "The mobile money’s poverty-reducing promise: Evidence from Cambodia," World Development Perspectives, Elsevier, vol. 22(C).
    18. Yonas Alem & Håkan Eggert & Remidius Ruhinduka, 2015. "Improving Welfare Through Climate-Friendly Agriculture: The Case of the System of Rice Intensification," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 243-263, October.
    19. Parvathi, Priyanka, 2017. "Divorce Mixed Crop-Livestock Farming to Increase Dietary Diversity? Evidence from Smallholders in Lao PDR," 57th Annual Conference, Weihenstephan, Germany, September 13-15, 2017 261995, German Association of Agricultural Economists (GEWISOLA).
    20. Asfaw, Solomon & Shiferaw, Bekele & Simtowe, Franklin & Lipper, Leslie, 2012. "Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia," Food Policy, Elsevier, vol. 37(3), pages 283-295.
    21. Dula Etana & Denyse J. R. M. Snelder & Cornelia F. A. van Wesenbeeck & Tjard de Cock Buning, 2021. "The Impact of Adaptation to Climate Change and Variability on the Livelihood of Smallholder Farmers in Central Ethiopia," Sustainability, MDPI, vol. 13(12), pages 1-21, June.

    More about this item

    Keywords

    Marketing;

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ccsesa:309786. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.ccsenet.org/sar .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.