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Welfare Effects of Vegetable Commercialization: Evidence from Smallholder Producers in Kenya

Beatrice Muriithi and Julia Matz ()

No 166029, Discussion Papers from University of Bonn, Center for Development Research (ZEF)

Abstract: We investigate the impact of smallholder vegetable commercialization through the export and domestic market channels on household income and assets in Kenya. We use a survey panel dataset, which allows us to control for unobserved heterogeneity across households, and show that the commercialization of vegetables through both market channels contributes positively to welfare, even when addressing the issue of selection into commercialization. While the production of vegetables for the export market is consistently associated with income in a positive way, the results for asset holdings as the measure of household welfare are weaker and supportive only for the domestic market channel, which weakens the notion of smallholder commercialization being a “pro-poor” strategy.

Keywords: Agribusiness; Environmental Economics and Policy; International Relations/Trade; Resource /Energy Economics and Policy (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr and nep-agr
Date: 2014-04
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Journal Article: Welfare effects of vegetable commercialization: Evidence from smallholder producers in Kenya (2015) Downloads
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DOI: 10.22004/ag.econ.166029

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