Supermarkets, farm household income and poverty: Insights from Kenya

Elizaphan J.O. Rao and Matin Qaim

No 95771, 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa from African Association of Agricultural Economists (AAAE)

Abstract: Expansion of supermarkets in developing countries is increasingly providing opportunities for farmers to participate in modern supply chains. While some farmers are excluded by stringent supermarket requirements, there are important gains for participating farmers. However, studies analyzing income effects of high-value chains use approaches that either show no causality or ignore structural differences between farmers in different channels. Using endogenous switching regression and data from a survey of vegetable growers in Kenya, we account for systematic differences and show that participation in supermarket chains yields 50% gain in household income leading to 33% reduction in poverty. Supermarket expansion is therefore likely to have substantial welfare effects if more farmers are supported to overcome inherent entry barriers.

Keywords: Agribusiness; Food Security and Poverty (search for similar items in EconPapers)
Pages: 35
Date: 2010-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://ageconsearch.umn.edu/record/95771/files/8. ... %20and%20poverty.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aaae10:95771

DOI: 10.22004/ag.econ.95771

Access Statistics for this paper

More papers in 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa from African Association of Agricultural Economists (AAAE) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().