Realizing the Gains from Trade : Export Crops, Marketing Costs, and Poverty

Balat, Jorge; Brambilla, Irene; Porto, Guido

Realizing the Gains from Trade : Export Crops, Marketing Costs, and Poverty

Autores

Balat, Jorge

Brambilla, Irene

Porto, Guido

Editor

World Bank, Washington, DC

Descripción

This paper explores the role of export costs in the process of poverty reduction in rural Africa. The authors claim that the marketing costs that emerge when the commercialization of export crops requires intermediaries can lead to lower participation into export cropping and, thus, to higher poverty. They test the model using data from the Uganda National Household Survey. The findings show that: i) farmers living in villages with fewer outlets for sales of agricultural exports are likely to be poorer than farmers residing in marketendowed villages; ii) market availability leads to increased household participation in export cropping (coffee, tea, cotton, fruits); and iii) households engaged in export cropping are less likely to be poor than subsistence-based households. The authors conclude that the availability of markets for agricultural export crops helps realize the gains from trade. This result uncovers the role of complementary factors that provide market access and reduce marketing costs as key building blocks in the link between the gains from export opportunities and the poor.

Palabras clave

ACCESS TO INFRASTRUCTURE, ACCESS TO INTERNATIONAL MARKETS, AGRICULTURAL EXPORTS, AGRICULTURAL PRODUCE, AGRICULTURAL PRODUCTION, BANANAS, CASH CROPS, CHILD LABOR, COFFEE, COFFEE PRICES, COMMERCIALIZATION, COMMODITY, COMMUNAL LAND, COMMUNITY INFRASTRUCTURE, CONFLICT, CONSUMPTION EXPENDITURE, COST OF TRANSPORTATION, COTTON, COTTON PRODUCTION, CREDIT ACCESS, CROP, CROP HUSBANDRY, CROP PRODUCTION, CROP YIELDS, CROPPING, CULTIVATED LAND, DISTRIBUTIONAL EFFECTS, ESTIMATES OF POVERTY, EXPENDITURE, EXPORT CROP MARKET, EXPORT CROPS, EXPORT MARKET, EXPORT MARKETING, EXPORT MARKETS, EXPORT PRICE INDEX, FAO, FARM, FARM ACTIVITIES, FARM INCOME, FARMER, FARMERS, FARMING, FERTILIZER, FIXED COSTS, FLOWERS, FOOD CROPS, FOOD MARKETS, FOOD PRICE, FOOD PRODUCTION, FOOD SUPPLY, FRUITS, HOUSEHOLD COMPOSITION, HOUSEHOLD CONTROLS, HOUSEHOLD EXPENDITURES, HOUSEHOLD HEAD, HOUSEHOLD INCOME, HOUSEHOLD PARTICIPATION, HOUSEHOLD SIZE, HOUSEHOLD SURVEY, HOUSEHOLD SURVEYS, HOUSEHOLD WELFARE, HOUSING, IMPACT ON POVERTY, INCOME, INCOME SHARES, INEQUALITY, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, LAND AVAILABILITY, LAND QUALITY, MAIZE, MARKET ACCESS, MARKET POWER, MARKETING, NATIONAL POVERTY, NATIONAL POVERTY RATE, OUTGROWER SCHEMES, PINEAPPLES, PLANTATIONS, POOR, POOR COUNTRIES, POVERTY ALLEVIATION, POVERTY INDICATOR, POVERTY LINE, POVERTY LINES, POVERTY RATES, POVERTY REDUCTION, POVERTY STATUS, PRICE EFFECT, PRICE INDEX, PRICE MECHANISM, PRODUCE MARKETS, PRODUCER PRICES, ROAD, ROADS, RURAL, RURAL AREAS, RURAL POVERTY, RURAL POVERTY LINE, RURAL POVERTY LINES, SALE, SALES, SCHOOLING, SEEDS, SORGHUM, SUBSISTENCE, SUBSISTENCE CROPS, SUBSISTENCE FARMERS, SUPPLY FUNCTION, SURPLUS, SWEET POTATOES, TEA, TOBACCO, TOMATOES, TRANSACTION COSTS, TRANSIT, TRANSPORT, TRANSPORT COSTS, TRANSPORTATION, TRANSPORTATION COST, TRANSPORTATION COSTS, TREE CROPS, TREES, TRUCKS, TRUE, VETERINARY SERVICES