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Burley tobacco clubs in Malawi: Nonmarket institutions for exports

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  • Negri, Mariano
  • Porto, Guido G.

Abstract

This paper studies nonmarket institutions that facilitate exports. In Malawi, as in many other developing countries, farmers face numerous constraints that disconnect them from export markets. We explore the role of a local institution, the burley tobacco clubs, in bridging smallholders to exports. Burley clubs potentially enable farmers to increase their tobacco farming productivity by providing services related to institutional access, collective action, economies of scale, and supporting network. Using matching methods and instrumental variable techniques, we find that tobacco club membership causes an increase in output per acre between 40 and 74 percent and an increase in tobacco sales per acre between 45 and 89 percent. Instead, neither the land share allocated to tobacco nor the unit value obtained by the producers is affected by club membership.

Suggested Citation

  • Negri, Mariano & Porto, Guido G., 2016. "Burley tobacco clubs in Malawi: Nonmarket institutions for exports," International Economics, Elsevier, vol. 146(C), pages 85-107.
    • Handle: RePEc:eee:inteco:v:146:y:2016:i:c:p:85-107
    DOI: 10.1016/j.inteco.2015.11.004
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    Cited by:

    1. Suzuki, Aya & Jarvis, Lovell S. & Sexton, Richard J., 2011. "Partial Vertical Integration, Risk Shifting, and Product Rejection in the High-Value Export Supply Chain: The Ghana Pineapple Sector," World Development, Elsevier, vol. 39(9), pages 1611-1623, September.
    2. Hagen-Zanker, Jessica, 2010. "Modest expectations: Causes and effects of migration on migrant households in source countries," MPRA Paper 29507, University Library of Munich, Germany.
    3. Wouter Zant, 2012. "How does Market Access affect Smallholder Behavior? The Case of Tobacco Marketing in Malawi," Tinbergen Institute Discussion Papers 12-088/V, Tinbergen Institute, revised 25 Aug 2014.
    4. Portugal-Perez, Alberto & Wilson, John S., 2008. "Why trade facilitation matters to Africa ?," Policy Research Working Paper Series 4719, The World Bank.
    5. Wouter Zant, 2016. "How does Market Access for Smallholders affect Export Supply? The Case of Tobacco Marketing in Malawi," Tinbergen Institute Discussion Papers 16-054/V, Tinbergen Institute, revised 08 Aug 2018.
    6. Prowse, Martin, 2011. "A comparative value chain analysis of burley tobacco in Malawi, 2003/04 and 2009/10," IOB Working Papers 2011.09, Universiteit Antwerpen, Institute of Development Policy (IOB).
    7. Kang, Munsu & Schwab, Benjamin & Yu, Jisang, 2020. "Gender differences in the relationship between land ownership and managerial rights: Implications for intrahousehold farm labor allocation," World Development, Elsevier, vol. 125(C).

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    More about this item

    Keywords

    Institutional access; Collective action and economies of scale; Supporting networks; Tobacco exports; Trade facilitation;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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