IDEAS home Printed from https://ideas.repec.org/p/ags/iaae18/277325.html
   My bibliography  Save this paper

Impact Assessment of Agricultural Commercialization on Food Security Among Smallholder Farmers in Kenya: An Application of Correlated Random Effects

Author

Listed:
  • Muricho, G.
  • Kulundu, D.
  • Sule, F.

Abstract

Welfare implication of agricultural commercialization in developing countries is not clear. Particularly not clear is its effect on household food security. Using panel data collected from smallholder farmers in Kenya, we analyze the impact of agricultural commercialization on household food security by fitting endogenous switching regression model in a correlated random effects framework. The results show that agricultural commercialization significantly improves household food security. Food security probability of commercialized and non-commercialized households was 62% and 32%, respectively. This 30% food security gap between the two groups of households could be reduced by 39 percentage points (12% gap) if non-commercialized households could be as efficient as commercialized household in their resource use. The other 61% percentage points (18% gap) emanated from differences in resource amounts between commercialized and non-commercialized households. The implication of these findings is that policies that stimulate and enhance agricultural commercialization are critical in improving household food security. Acknowledgement : This study was supported by the Australian Centre for International Agricultural Research (ACIAR) and Australian International Food Security Research Centre (AIFSRC) through International Maize and Wheat Improvement Center (CIMMYT) led Sustainable Intensification of Maize-Legume Cropping Systems in Eastern and Southern Africa (SIMLESA) program, and Adoption Pathways Project. The views expressed here are those of authors and do not necessarily reflect the views of the donor or authors institution. The usual disclaimer applies

Suggested Citation

  • Muricho, G. & Kulundu, D. & Sule, F., 2018. "Impact Assessment of Agricultural Commercialization on Food Security Among Smallholder Farmers in Kenya: An Application of Correlated Random Effects," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277325, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae18:277325
    DOI: 10.22004/ag.econ.277325
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/277325/files/1670.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.277325?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
    ---><---

    References listed on IDEAS

    as
    1. Michael Lokshin & Elena Glinskaya, 2009. "The Effect of Male Migration on Employment Patterns of Women in Nepal," The World Bank Economic Review, World Bank, vol. 23(3), pages 481-507, November.
    2. Mallick, Debdulal & Rafi, Mohammad, 2010. "Are Female-Headed Households More Food Insecure? Evidence from Bangladesh," World Development, Elsevier, vol. 38(4), pages 593-605, April.
    3. von Braun, Joachim, 1995. "Agricultural commercialization: impacts on income and nutrition and implications for policy," Food Policy, Elsevier, vol. 20(3), pages 187-202, June.
    4. Marc F. Bellemare & Christopher B. Barrett, 2006. "An Ordered Tobit Model of Market Participation: Evidence from Kenya and Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 88(2), pages 324-337.
    5. C. Peter Timmer, 1997. "Farmers and Markets: The Political Economy of New Paradigms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 621-627.
    6. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
    7. Reinhard Schunck, 2013. "Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models," Stata Journal, StataCorp LP, vol. 13(1), pages 65-76, March.
    8. Kassie, Menale & Ndiritu, Simon Wagura & Stage, Jesper, 2014. "What Determines Gender Inequality in Household Food Security in Kenya? Application of Exogenous Switching Treatment Regression," World Development, Elsevier, vol. 56(C), pages 153-171.
    9. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
    10. Strasberg, Paul J. & Jayne, Thomas S. & Yamano, Takashi & Nyoro, James K. & Karanja, Daniel David & Strauss, John, 1999. "Effects of Agricultural Commercialization on Food Crop Input Use and Productivity in Kenya," Food Security International Development Working Papers 54675, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    11. World Bank, 2009. "Kenya - Poverty and Inequality Assessment : Executive Summary and Synthesis Report," World Bank Publications - Reports 3081, The World Bank Group.
    12. William J. Burke & T. S. Jayne, 2014. "Smallholder land ownership in Kenya: distribution between households and through time," Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 185-198, March.
    13. Pingali, Prabhu L. & Rosegrant, Mark W., 1995. "Agricultural commercialization and diversification: processes and policies," Food Policy, Elsevier, vol. 20(3), pages 171-185, June.
    14. Prabhu L. Pingali, 1997. "From Subsistence to Commercial Production Systems: The Transformation of Asian Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 628-634.
    15. Arega, D.A. & Manyong, Victor M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, George D., 2008. "Smallholder marketed surplus and input use under transactions costs: maize supply and fertilizer demand in Kenya," 2007 Second International Conference, August 20-22, 2007, Accra, Ghana 52074, African Association of Agricultural Economists (AAAE).
    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. Gebremedhin, Berhanu & Jaleta, Moti, 2013. "Policy Imperatives of Commercial Transformation of Smallholders: Market Orientation Versus market Participation in Ethiopia," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160580, African Association of Agricultural Economists (AAAE).
    2. Justus Ochieng & Beatrice Knerr & George Owuor & Emily Ouma, 2020. "Food crops commercialization and household livelihoods: Evidence from rural regions in Central Africa," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 318-338, April.
    3. Tesfaye Woldeyohanes & Thomas Heckelei & Yves Surry, 2017. "Effect of off-farm income on smallholder commercialization: panel evidence from rural households in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 48(2), pages 207-218, March.
    4. Demeke, Leykun & Haji, Jemma, 2014. "Econometric analysis of factors affecting market participation of smallholder farming in Central Ethiopia," MPRA Paper 77024, University Library of Munich, Germany.
    5. Gebremedhin, Berhanu & Jaleta, Moti, 2010. "Commercialization of Smallholders: Is Market Participation Enough?," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96159, African Association of Agricultural Economists (AAAE).
    6. Mekonnen, Tigist, 2017. "Impact of agricultural technology adoption on market participation in the rural social network system," MERIT Working Papers 2017-008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Kirk, Angeli & Kilic, Talip & Carletto, Calogero, 2018. "Composition of Household Income and Child Nutrition Outcomes Evidence from Uganda," World Development, Elsevier, vol. 109(C), pages 452-469.
    8. Asante, S. B. & Osei-Asare, Y. B. & Kuwornu, J. K. M., 2016. "Smallholder Maize Farmers’ Food Consumption Expenditures in Ghana: The Mediating Role of Commercialization," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(3), pages 1-15, September.
    9. Tigist Mekonnen Melesse, 2015. "Agricultural Technology Adoption and Market Participation under Learning Externality: Impact Evaluation on Small-scale Agriculture from Rural Ethiopia," Working Papers 2015/06, Maastricht School of Management.
    10. Leavy, Jennifer & Colin, Poulton, 2008. "Commercialisations in Agriculture," Ethiopian Journal of Economics, Ethiopian Economics Association, vol. 16(1), pages 116-116, May.
    11. Simphiwe Innocentia Hlatshwayo & Temitope Oluwaseun Ojo & Albert Thembinkosi Modi & Tafadzwanashe Mabhaudhi & Rob Slotow & Mjabuliseni Simon Cloapas Ngidi, 2022. "The Determinants of Market Participation and Its Effect on Food Security of the Rural Smallholder Farmers in Limpopo and Mpumalanga Provinces, South Africa," Agriculture, MDPI, vol. 12(7), pages 1-16, July.
    12. Muricho, Geoffrey & Manda, Damiano & Sule, Fredrick & Kassie, Menale, 2017. "Smallholder Agricultural Commercialization and Poverty: Empirical Evidence of Panel Data from Kenya," 91st Annual Conference, April 24-26, 2017, Royal Dublin Society, Dublin, Ireland 258618, Agricultural Economics Society.
    13. Mignouna, D.B. & Abdoulaye, T. & Alene, A. & Akinola, A.A. & Manyong, V.M., 2015. "Drivers of Market Participation Decisions among Small-scale Farmers in Yam Growing Areas of Nigeria and Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 230219, International Association of Agricultural Economists.
    14. Rios, Ana R. & Masters, William A. & Shively, Gerald E., 2008. "Linkages between Market Participation and Productivity: Results from a Multi-Country Farm Household Sample," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6145, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    15. Montalbano, P. & Pietrelli, R. & Salvatici, L., 2018. "Participation in the market chain and food security: The case of the Ugandan maize farmers," Food Policy, Elsevier, vol. 76(C), pages 81-98.
    16. Cazzuffi, Chiara & McKay, Andrew, 2012. "Rice market participation and channels of sale in rural Vietnam," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126566, International Association of Agricultural Economists.
    17. Keita, Moussa, 2012. "Impact of subsidized inputs credits on land allocation and market-oriented agriculture in rural households in Mali," MPRA Paper 57542, University Library of Munich, Germany.
    18. Melkani, Aakanksha & Mason, Nicole & Mather, David & Chisanga, Brian & Jayne, Thom, 2021. "Smallholder Market Participation and Choice of Marketing Channel in the Presence of Liquidity Constraints: Evidence from Zambian Maize Markets," 2021 Conference, August 17-31, 2021, Virtual 315273, International Association of Agricultural Economists.
    19. Kirk, Angeli & Kilic, Talip & Carletto, Calogero, 2015. "How Does Composition of Household Income Affect Child Nutrition Outcomes? Evidence from Uganda," 2015 Conference, August 9-14, 2015, Milan, Italy 212006, International Association of Agricultural Economists.
    20. Gebremedhin, Berhanu & Tegegne, Azage, 2012. "Market Orientation and Market Participation of Smallholders in Ethiopia: Implications for Commercial Transformation," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 125847, International Association of Agricultural Economists.

    More about this item

    Keywords

    Food Security and Poverty;

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iaae18:277325. 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: https://edirc.repec.org/data/iaaeeea.html .

    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.