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The Role of Agricultural Market Information on Farmers' Agricultural Outcomes: Evidence from Smallholder Coffee Producers in Ethiopia

Guenwoo Lee, Aya Suzuki and Yu Ri Kim

No HIAS-E-110, Discussion paper series from Hitotsubashi Institute for Advanced Study, Hitotsubashi University

Abstract: Using data from 466 smallholder coffee farmers in Ethiopia, this paper examines the effect of a public agricultural market information system (AMIS) on the farmers’ agricultural outcomes. Our findings confirm that providing market price information via the AMIS is positively related to coffee sales, the ratio of sales to production, and coffee income. In addition, we consider market heterogeneity by comparing two zones with different market characteristics. We find that the AMIS is positively associated with increasing coffee sales, the ratio of sales to production, and coffee income in only one zone with relatively lower market participation. On the contrary, the sales and income of AMIS users in the other zone with higher market participation did not increase although their selling price increased. While public information provision via ICT is more beneficial to underdeveloped markets, we suggest correcting other market imperfections is important to maximize the utility of AMISs.

Keywords: Agricultural Market Information System; Coffee Farmer; Ethiopia; ICT4D; IPWRA (search for similar items in EconPapers)
JEL-codes: D80 Q12 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2021-08
New Economics Papers: this item is included in nep-ene, nep-env, nep-int and nep-isf
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/72200/070_hiasDP-E-110.pdf

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