Farmer Participation in Supermarket Channels, Production Technology and Technical Efficiency: The Case of Vegetables in Kenya

Elizaphan J.O. Rao, Bernhard Brümmer and Matin Qaim

No 61190, 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado from Agricultural and Applied Economics Association

Abstract: Supermarkets are currently gaining ground in the agri-food systems of many developing countries. While recent research has analyzed income effects in the small farm sector, impacts on farming efficiency have hardly been studied. Productivity effects in previous studies are also estimated with respect to different frontiers. Using a survey of Kenyan vegetable growers and a meta-frontier approach, we control for self-selection using propensity score matching and show that participation in supermarket channels increases farm productivity by 35-38%. Effects on technical efficiency are, however, insignificant. Supermarket expansion therefore presents opportunities for realizing agricultural growth, thus enhancing poverty alleviation and rural development.

Keywords: Agribusiness; Community/Rural/Urban Development; International Development; Production Economics; Productivity Analysis (search for similar items in EconPapers)
Pages: 42
Date: 2010
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea10:61190

DOI: 10.22004/ag.econ.61190

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