Commercialisation and Poverty in Tanzania: Household-level Analysis

Elina Eskola
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Elina Eskola: Department of Economics, University of Copenhagen

No 05-27, Discussion Papers from University of Copenhagen. Department of Economics

Abstract: Data from a recent Tanzanian household survey are used to investigate households’ connectedness to market economy i.e. commercialisation. The study puts emphasis on facilitating access to the nearest markets and market information as means to enhance commercialisation. Commercialisation and total consumption are found to be highly correlated and mutually reinforcing. The more commercialised the household is, the higher probability it has to be well off and thus enhanced commercialisation should be encouraged as a way to increase households’ welfare. The distance to the nearest market and the availability of market information are found to be significant factors in households’ degree of commercialisation. However, the importance of large regional fixed effects highlights the importance of the structural barriers for trade in Tanzania.

Keywords: commercialisation; poverty; transaction cost; household model; Tanzania (search for similar items in EconPapers)
JEL-codes: C31 I31 Q12 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2005-12
New Economics Papers: this item is included in nep-dev
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:kud:kuiedp:0527

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