Heterogeneous effects of marketing contracts and resource-providing contracts on household income

Vista sencilla de ítem
dc.creatorRuml, Anette
dc.creatorRagasa, Catherine
dc.creatorQaim, Matin
dc.date2020-03-01
dc.date2024-05-22T12:13:30Z
dc.date2024-05-22T12:13:30Z
dc.date.accessioned2026-06-27T15:40:10Z
dc.descriptionIn the existing literature, the effects of contract farming on household welfare were examined with mixed results. Most studies looked at single contract types. This paper contributes to the literature by comparing two types of contracts – simple marketing contracts and resource providing contracts – in the Ghanaian oil palm sector. We investigate the effects of both contracts on farm income, as well as spillovers on other household income sources. We use survey data collected with an innovative sampling design and a control function approach to address possible issues of endogeneity. Both contracts lead to large positive effects on total household income in a similar magnitude, yet through quite different mechanisms. Farmers under the marketing contract use the increase in oil palm profits to transition out of agricultural production and into off-farm employment. Farmers under the resource-providing contract have a stronger dependency on income from oil palm, which is considerably more profitable under the contract. The findings underline that contract characteristics matter for the effects and that disaggregated analysis of different income sources is important to understand the underlying mechanisms.
dc.identifierhttps://hdl.handle.net/10568/143340
dc.identifier.urihttp://hdl.handle.net/123456789/111170
dc.languageen
dc.publisherUniversität Göttingen
dc.relationhttps://doi.org/10.1016/j.worlddev.2017.09.008
dc.relationhttps://doi.org/10.1016/j.foodpol.2017.11.001
dc.rightsOpen Access
dc.sourceRuml, Anette; Ragasa, Catherine; and Qaim, Matin. 2020. Heterogeneous effects of marketing contracts and resource-providing contracts on household income. GlobalFood Discussion Papers 138. https://purl.umn.edu/301005
dc.subjectincome
dc.subjectpalm oil industries
dc.subjectresources
dc.subjecthouseholds
dc.subjectcontracts
dc.subjectcapacity development
dc.subjectfarm income
dc.subjecthousehold income
dc.subjectmarketing
dc.subjectsmallholders
dc.subjectpalm oils
dc.subjectcontract farming
dc.subjectcontrol function approach
dc.subjectcredit
dc.titleHeterogeneous effects of marketing contracts and resource-providing contracts on household income
dc.typeWorking Paper

Archivos

Colecciones

Instituto Internacional de Investigación sobre Políticas Alimentarias (IFPRI)