Market Access and Quality Upgrading: Evidence from Four Field Experiments

Tessa Bold, Selene Ghisolfi, Frances Nsonzi and Jakob Svensson

American Economic Review, 2022, vol. 112, issue 8, 2518-52

Abstract: Smallholder farming in many developing countries is characterized by low productivity and low-quality output. Low quality limits the price farmers can command and their potential income. We conduct a series of experiments among maize farmers in Uganda to shed light on the barriers to quality upgrading and to study its potential. We find that the causal return to quality is zero. Providing access to a market where quality is paid a market premium led to an increase in farm productivity and income from farming. Our findings reveal the importance of demand-side constraints in limiting rural income and productivity growth.

JEL-codes: C93 L14 L15 L22 O13 Q12 Q13 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1257/aer.20210122

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