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Sammanfattning

This article investigates how off-farm income affects crop output market participation decisions and marketed surplus of smallholder farmers in Ethiopia. A double-hurdle model is estimated using three waves of panel data from the Ethiopian Rural Household Survey. Unobserved heterogeneity is controlled for using a correlated random effect procedure and potential endogeneity of explanatory variables using a control function approach. The results show that off-farm income has no significant influence on household crop output market participation. However, conditional on market participation, additional off-farm earnings negatively affect the marketed surplus. This indicates that farmers use off-farm earnings for consumption rather than for investment in agricultural production. Policy measures that promote rural investment may help increase returns to labor for land-poor households participating in off-farm work in the process of agricultural commercialization.

Nyckelord

Double-hurdle; Endogeneity; Off-farm income; Smallholder commercialization; Ethiopia

Publicerad i

Agricultural Economics
2017, volym: 48, nummer: 2, sidor: 207-218
Utgivare: WILEY

SLU författare

Globala målen (SDG)

SDG8 Anständiga arbetsvillkor och ekonomisk tillväxt

UKÄ forskningsämne

Nationalekonomi

Publikationens identifierare

  • DOI: https://doi.org/10.1111/agec.12327

Permanent länk till denna sida (URI)

https://res.slu.se/id/publ/82668