Do households that sell their surplus maize reinvest in improved maize seed? Case of southern Africa

R. Lunduka, Girma Kassie (), A. Tahirou and S. Babu

No 277378, 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia from International Association of Agricultural Economists

Abstract: This study assesses the influence of selling maize grain on re-investing in Improved Maize Varieties (IMV). It uses a unique data set from five southern African countries of Angola, Malawi, Mozambique, Zambia and Zimbabwe where the selling of maize grain in 2011 season was linked to buying of IMV in 2012 season form sample 2,954 households. Using a control function approach to correct for the endogeneity of selling maize grain in 2011 and the accessing IMV through government subsidies, the study employed a double hurdle model and finds that households that sold maize grain in 2011 had the high probability of growing IMV in 2012. This study points to the fact that when households are able to raise income through grain market participation, reinvestment into land productivity-enhancing technologies could be possible and household food security is also addressed. Therefore developing a better agribusiness environment will take care of food security and hence government goals should not stop at being food secure but developing a condition where a household aims at selling its surplus output. Acknowledgement : This work was done for the International Maize and Wheat Improvement Center (CIMMYT), as part of the Drought Tolerant Maize for Africa (DTMA) project, funded by the Bill & Melinda Gates Foundation. The authors wish to thank Deborah Maleni, , Mekonnen Sime, Samson Katengeza, Bernadette Chimai, and Shamiso Chikobvu for collaboration on the design and implementation of the surveys in Angola, Malawi, Mozambique, Zambia, and Zimbabwe. Many thanks are due to our respondents at the study sites.

Keywords: Consumer/Household; Economics (search for similar items in EconPapers)
Date: 2018-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:iaae18:277378

DOI: 10.22004/ag.econ.277378

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