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The Impact of Tobacco Production Liberalization on Smallholders in Malawi

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  • Harashima, Azusa

Abstract

Burley tobacco production in Malawi was liberalized to permit production by smallholders in the early 1990s. The purpose of this paper is to show which smallholders began producing burley tobacco after liberalization and which smallholders still continue to produce it. Analysis of the characteristics of burley tobacco producers shows that only smallholders who had adequate farm size and adequate funds could start to produce it. With regard to the farm size requirements, only smallholders who had enough acreage to sell tobacco on the auction floors and who had enough acreage to rotate crops could start to produce. With regard to the financial requirements, only smallholders who could procure funds through informal institutions or who possessed their own capital to meet the necessary agricultural expenditures could start. So, it was only the wealthy households which could start to produce tobacco after liberalization and continue to produce it.

Suggested Citation

  • Harashima, Azusa, 2008. "The Impact of Tobacco Production Liberalization on Smallholders in Malawi," IDE Discussion Papers 170, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper170
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37997&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2008
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    Cited by:

    1. Natalia Radchenko & Paul Corral & Paul Winters, 2018. "Heterogeneity of commercialization gains in the rural economy," Agricultural Economics, International Association of Agricultural Economists, vol. 49(1), pages 131-143, January.

    More about this item

    Keywords

    Malawi; Tobacco; Agriculture; Smallholder; Agricultural income; Liberalization; マラウィ; タバコ; 農業; 小農; 農業所得; 自由化;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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