Burley tobacco clubs in Malawi: nonmarket institutions for exports

Mariano Negri () and Guido Porto

No 4561, Policy Research Working Paper Series from The World Bank

Abstract: This paper studies nonmarket institutions that facilitate exports. In Malawi, as in many other developing countries, farmers face numerous constraints that disconnect them from export markets. The paper explores the role of a local institution, the burley tobacco clubs, in bridging smallholders to exports. Burley clubs potentially enable farmers to increase their tobacco farming productivity by providing services related to institutional access, collective action, economies of scale, and supporting network. Using matching methods and instrumental variable techniques, the authors find that tobacco club membership causes an increase of between 40-74 percent in output per acre and an increase of between 45-89 percent in tobacco sales per acre. Instead, neither the land share allocated to tobacco nor the unit value obtained by the producers is affected by club membership.

Keywords: Tobacco Use and Control; Alcohol and Substance Abuse; Crops&Crop Management Systems; Adolescent Health; Access to Finance (search for similar items in EconPapers)
Date: 2008-03-01
New Economics Papers: this item is included in nep-afr, nep-agr and nep-dev
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Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Burley Tobacco Clubs in Malawi: Nonmarket Institutions for Exports (2016)
Journal Article: Burley tobacco clubs in Malawi: Nonmarket institutions for exports (2016)
Working Paper: Burley Tobacco Clubs in Malawi: Nonmarket Institutions for Exports (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:4561

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