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Welfare Impact of Wheat Farmers Participation in the Value Chain in Tanzania

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dc.contributor.author Warsanga, William B.
dc.contributor.author Evans, Edward A.
dc.date.accessioned 2023-08-24T07:30:18Z
dc.date.available 2023-08-24T07:30:18Z
dc.date.issued 2018
dc.identifier.citation Warsanga, W.B. and Evans, E.A. (2018). Welfare Impact of Wheat Farmers Participation in the Value Chain in Tanzania. Modern Economy, 9, 853-887. https://doi.org/10.4236/me.2018.94055 en_US
dc.identifier.issn 2152-7261
dc.identifier.issn 2152-7245
dc.identifier.uri http://repository.mocu.ac.tz/xmlui/handle/123456789/612
dc.description A full text article from Community and Rural Development en_US
dc.description.abstract The paper examines the link between value chain participation and welfare changes for wheat farmers in Tanzania. Specifically, the paper analyzes the wheat value chain from production to consumption, explores participation in the value chain, and examines the net effect of farmers’ participation in the value chain. A logistic model is used to explore the factors influencing farmers’ participation in the value chain and to estimate propensity scores to match the covariates for participants and nonparticipants. Applying the nearest neighbor and caliper radius matching algorithms found that only a few farmers are vertically (~17%) and horizontally (~39%) coordinated based on participation in contracts and associations, respectively. At the vertical coordination level, characteristics are significantly different for farmers with and without contracts in terms of land size, technical efficiency, allocative efficiency, output per acre, frequency of extension visits, frequency of village meetings attendance, and off-farm income. At the horizontal coordination level, farmers who join associations differ significantly from nonmembers in terms of level of education, frequency of village meetings attendance, output per acre, technical efficiency, and allocative efficiency. Vertical coordination participants receive a profit of 126 TSh/kg more for wheat than nonparticipants, with the difference significant at the 1% level. Horizontal coordination participants receive a profit of 46 TSh/kg more for wheat than nonparticipants, with the difference significant at the 5% level. The sensitivity analysis reveals that farmers’ participation in the value chain is generally insensitive to unobserved covariates. The findings suggest that establishing more contracts and stronger associations that specifically deal with wheat production has a positive impact on farmers’ welfare. en_US
dc.language.iso en en_US
dc.publisher Modern Economy en_US
dc.relation.ispartofseries Vol. 9;
dc.subject Wheat en_US
dc.subject Value Chain en_US
dc.subject PSM en_US
dc.subject Tanzania en_US
dc.subject Welfare en_US
dc.title Welfare Impact of Wheat Farmers Participation in the Value Chain in Tanzania en_US
dc.type Article en_US


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