Supermarkets, farm household income, and poverty: Insights from Kenya

Elizaphan J.O. Rao and Matin Qaim
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Elizaphan J.O. Rao: Georg-August University Goettingen
Matin Qaim: Georg-August University Goettingen

No 28, Courant Research Centre: Poverty, Equity and Growth - Discussion Papers from Courant Research Centre PEG

Abstract: The expansion of supermarkets in developing countries may have far-reaching consequences for poverty and rural development. While previous studies have compared farm profits between participants and non-participants in supermarket channels, wider household welfare effects have hardly been analyzed. Moreover, structural differences between the two groups have been ignored. We address these issues by using endogenous switching regression and building on a survey of vegetable farmers in Kenya. Participation in supermarket channels is associated with a 50% gain in average household income, leading to significant poverty reduction. To realize these benefits on a larger scale will require institutional and policy support.

Keywords: supermarkets; household income; sample selection; endogenous switching regression; Kenya; Africa (search for similar items in EconPapers)
Date: 2010-03-24
New Economics Papers: this item is included in nep-afr, nep-agr and nep-dev
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Persistent link: https://EconPapers.repec.org/RePEc:got:gotcrc:028

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