Farm Productivity and Market Structure: Evidence from Cotton Reforms in Zambia

Irene Brambilla and Guido Porto

Working Papers from Yale University, Department of Economics

Abstract: This paper investigates the impacts of cotton marketing reforms on farm productivity, a key element for poverty alleviation, in rural Zambia. The reforms comprised the elimination of the Zambian cotton marketing board that was in place since 1977. Following liberalization, the sector adopted an outgrowing scheme, whereby firms provided extension services to farmers and sold inputs on loans that were repaid at the time of harvest. There are two distinctive phases of the reforms: a failure of the outgrowing scheme, and a subsequent period of success of the scheme. Our findings indicate that the reforms led to interesting dynamics in cotton farming. During the phase of failure, farmers were pushed back into subsistence and productivity in cotton declined. With the improvement of the outgrowing scheme of later years, farmers devoted larger shares of land to cash crops, and farm productivity significantly increased.

JEL-codes: I32 (search for similar items in EconPapers)
Date: 2005-03
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Farm productivity and marketstructure: evidence from cotton reforms in Zambia (2006)
Working Paper: Farm Productivity and Market Structure: Evidence from Cotton Reforms in Zambia (2005)
Working Paper: Farm Productivity and Market Structure. Evidence From Cotton Reforms in Zambia (2005)
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