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Social networks, rice value chain participation and market performance of smallholder farmers in Ghana

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  • Awal Abdul‐Rahaman
  • Awudu Abdulai

Abstract

This paper examines the impact of rice value chain participation and social networks on smallholder farmers' market performance outcomes (paddy price, quantity of paddy traded, and net returns), using data from a recent survey of 458 smallholder rice farmers in northern Ghana. We employed a treatment effects model to account for potential selection bias associated with observable and unobservable factors. The empirical results reveal that smallholder farmers' participation in a rice value chain is associated with increased paddy price, quantity traded, and net returns. We also find that value chain participation decisions and market performance are positively and significantly influenced by social networks. The empirical results also suggest that sex, farm size, mobile phone ownership, and access to credit significantly increase paddy prices, quantity traded, and net returns of smallholder rice farmers in the value chain.

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  • Awal Abdul‐Rahaman & Awudu Abdulai, 2020. "Social networks, rice value chain participation and market performance of smallholder farmers in Ghana," African Development Review, African Development Bank, vol. 32(2), pages 216-227, June.
    • Handle: RePEc:bla:afrdev:v:32:y:2020:i:2:p:216-227
    DOI: 10.1111/1467-8268.12429
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    Cited by:

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    4. Eunice Adu Donkor & Elena Garnevska & Muhammad Imran Siddique & Emmanuel Donkor, 2021. "Determinants of Rice Farmer Participation in the Direct Marketing Channel in Ghana," Sustainability, MDPI, vol. 13(9), pages 1-14, April.
    5. Min‐Han Tsai & Yir‐Hueih Luh, 2023. "Group heterogeneity and the economic effect of farmer organisation participation: Empirical evidence from Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 473-491, June.
    6. Françoise Okah Efogo, 2020. "Does trade in services improve African participation in global value chains?," African Development Review, African Development Bank, vol. 32(4), pages 758-772, December.
    7. Abdulkareem Alhassan & Joshua Dzankar Zoaka & Salim Hamza Ringim, 2021. "Africa as headwaiter at the dining table of global value chains: Do institutions matter for her participation?," African Development Review, African Development Bank, vol. 33(3), pages 560-576, September.
    8. Wanglin Ma & Awal Abdul‐Rahaman & Gazali Issahaku, 2023. "Welfare implications of participating in agri‐value chains among vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 793-811, July.
    9. Li, Junpeng & Ma, Wanglin & Gong, Binlei, 2023. "Market participation and subjective well-being of maize farmers," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 941-960.
    10. Awal Abdul‐Rahaman & Gazali Issahaku & Wanglin Ma, 2023. "Agrifood system participation and production efficiency among smallholder vegetable farmers in Northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 812-835, July.
    11. Badassa W. Chala, 2024. "Effects of economic freedom and ease of doing business on trade in global value chains: Evidence from sub‐Saharan Africa," African Development Review, African Development Bank, vol. 36(1), pages 70-83, March.
    12. Mulu Debela Ofolsha & Fekadu Beyene Kenee & Dawit Alemu Bimirew & Tesfaye Lemma Tefera & Aseffa Seyoum Wedajo, 2022. "The Effect of Social Networks on Smallholder Farmers’ Decision to Join Farmer-Base Seed Producer Cooperatives (FBSc): The Case of Hararghe, Oromia, Ethiopia," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    13. Rexford Akrong & Stephen G. Mbogoh & Patrick Irungu, 2020. "Youth agripreneurship in the horticultural value‐chain: The case of small‐scale mango farmers in Southern Ghana," African Development Review, African Development Bank, vol. 32(S1), pages 68-77, November.
    14. Chauhan, Sonalee & Varma, Poornima & Singh, Sukhpal, 2024. "What drives smallholder market participation and channel choice decision? Insights from paddy markets in India," IAAE 2024 Conference, August 2-7, 2024, New Delhi, India 344325, International Association of Agricultural Economists (IAAE).

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