How Does Participation in Value Chains Matter to African Farmers?

How Does Participation in Value Chains Matter to African Farmers?

Trade and participation in global value chains can play a key role in economic diversification and development. This paper deepens the discussion about productivity growth and upgrading in agriculture in Africa, and the role of national, regional,...

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Bibliographic Details
Main Authors: Dihel, Nora, Goswami, Arti Grover, Hollweg, Claire H., Slany, Anja
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
VALUE CHAIN
AGRICULTURE
TRANSFORMATION
AGRICULTURAL PRODUCTIVITY
DIVERSIFICATION
INPUT CHAIN
EXTENSION SERVICES
Online Access:http://documents.worldbank.org/curated/en/625351530882059462/How-does-participation-in-value-chains-matter-to-African-farmers
http://hdl.handle.net/10986/29979
id okr-10986-29979
recordtype oai_dc
spelling okr-10986-299792021-06-14T10:06:46Z How Does Participation in Value Chains Matter to African Farmers? Dihel, Nora Goswami, Arti Grover Hollweg, Claire H. Slany, Anja VALUE CHAIN AGRICULTURE TRANSFORMATION AGRICULTURAL PRODUCTIVITY DIVERSIFICATION INPUT CHAIN EXTENSION SERVICES Trade and participation in global value chains can play a key role in economic diversification and development. This paper deepens the discussion about productivity growth and upgrading in agriculture in Africa, and the role of national, regional, and international value chains in supporting such structural change. The analysis in this report is based on quantitative and qualitative surveys undertaken in 2016 in Ghana, Kenya, and Zambia, where 3,935 farmers, 60 aggregators, and 56 buyers in the maize, cassava, and sorghum value chains were interviewed in the three countries. The descriptive results show that farmers who were on a contract saw greater structural transformation; higher output; and better access to seeds, fertilizers, pesticides, technology, and extension services compared with farmers who were not on a contract. To identify more robustly the link between value chain participation and contract farming with productivity and upgrading, the paper looks at the relationship using a variety of empirical methodologies, ranging from ordinary least squares and probit regressions to propensity score matching. Based on the empirical evidence, the hypothesis that value chain participation leads to structural transformation cannot be confirmed. The paper does find evidence that formal or informal contractual arrangements that regulate the provision of inputs to production, such as fertilizer, technology, extension services, and market information, positively affect upgrading. It remains nevertheless important to understand the impact of government policies on the emergence of value chains given that value chains support contractual arrangements. 2018-07-13T19:52:51Z 2018-07-13T19:52:51Z 2018-07 Working Paper http://documents.worldbank.org/curated/en/625351530882059462/How-does-participation-in-value-chains-matter-to-African-farmers http://hdl.handle.net/10986/29979 English Policy Research Working Paper;No. 8506 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Sub-Saharan Africa Ghana Kenya Zambia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic VALUE CHAIN
AGRICULTURE
TRANSFORMATION
AGRICULTURAL PRODUCTIVITY
DIVERSIFICATION
INPUT CHAIN
EXTENSION SERVICES
spellingShingle VALUE CHAIN
AGRICULTURE
TRANSFORMATION
AGRICULTURAL PRODUCTIVITY
DIVERSIFICATION
INPUT CHAIN
EXTENSION SERVICES
Dihel, Nora
Goswami, Arti Grover
Hollweg, Claire H.
Slany, Anja
How Does Participation in Value Chains Matter to African Farmers?
geographic_facet Africa
Sub-Saharan Africa
Ghana
Kenya
Zambia
relation Policy Research Working Paper;No. 8506
description Trade and participation in global value chains can play a key role in economic diversification and development. This paper deepens the discussion about productivity growth and upgrading in agriculture in Africa, and the role of national, regional, and international value chains in supporting such structural change. The analysis in this report is based on quantitative and qualitative surveys undertaken in 2016 in Ghana, Kenya, and Zambia, where 3,935 farmers, 60 aggregators, and 56 buyers in the maize, cassava, and sorghum value chains were interviewed in the three countries. The descriptive results show that farmers who were on a contract saw greater structural transformation; higher output; and better access to seeds, fertilizers, pesticides, technology, and extension services compared with farmers who were not on a contract. To identify more robustly the link between value chain participation and contract farming with productivity and upgrading, the paper looks at the relationship using a variety of empirical methodologies, ranging from ordinary least squares and probit regressions to propensity score matching. Based on the empirical evidence, the hypothesis that value chain participation leads to structural transformation cannot be confirmed. The paper does find evidence that formal or informal contractual arrangements that regulate the provision of inputs to production, such as fertilizer, technology, extension services, and market information, positively affect upgrading. It remains nevertheless important to understand the impact of government policies on the emergence of value chains given that value chains support contractual arrangements.
format Working Paper
author Dihel, Nora
Goswami, Arti Grover
Hollweg, Claire H.
Slany, Anja
author_facet Dihel, Nora
Goswami, Arti Grover
Hollweg, Claire H.
Slany, Anja
author_sort Dihel, Nora
title How Does Participation in Value Chains Matter to African Farmers?
title_short How Does Participation in Value Chains Matter to African Farmers?
title_full How Does Participation in Value Chains Matter to African Farmers?
title_fullStr How Does Participation in Value Chains Matter to African Farmers?
title_full_unstemmed How Does Participation in Value Chains Matter to African Farmers?
title_sort how does participation in value chains matter to african farmers?
publisher World Bank, Washington, DC
publishDate 2018
url http://documents.worldbank.org/curated/en/625351530882059462/How-does-participation-in-value-chains-matter-to-African-farmers
http://hdl.handle.net/10986/29979
_version_ 1764470971336491008

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