Agricultural factor markets in Sub-Saharan Africa: an updated view with formal tests for market failure

Christopher B. Barrett, Brian Dillon, Christopher B. Barrett and Brian Dillon
Authors registered in the RePEc Author Service: Christopher B. Barrett and Brian Dillon ()

No 7117, Policy Research Working Paper Series from The World Bank

Abstract: This paper uses the recently collected Living Standard Measurement Study-Integrated Surveys on Agriculture Initiative data sets from five countries in Sub-Saharan Africa to provide a comprehensive overview of land and labor market participation by agrarian households and to formally test for failures in factor markets. Under complete and competitive markets, households can solve their consumption and production problems separately, so that household factor endowments do not predict input demand. This paper implements a simple, theoretically grounded test of this separation hypothesis, which can be interpreted as a reduced form test of factor market failure. In all five study countries, the analysis finds strong evidence of factor market failure. Moreover, those failures appear general and structural, not specific to subpopulations defined by gender or geography.

Keywords: Labor Markets; Macroeconomic Management; Economic Forecasting; Governance Diagnostic Capacity Building; Gender and Development; Rural Labor Markets; Food Security (search for similar items in EconPapers)
Date: 2014-11-01
New Economics Papers: this item is included in nep-agr and nep-dev
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (52)

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Journal Article: Agricultural factor markets in Sub-Saharan Africa: An updated view with formal tests for market failure (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:wbk:wbrwps:7117

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