Burley Tobacco Clubs in Malawi : Nonmarket Institutions for Exports
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World Bank, Washington, DC
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This paper studies nonmarket
institutions that facilitate exports. In Malawi, as in many
other developing countries, farmers face numerous
constraints that disconnect them from export markets. The
paper explores the role of a local institution, the burley
tobacco clubs, in bridging smallholders to exports. Burley
clubs potentially enable farmers to increase their tobacco
farming productivity by providing services related to
institutional access, collective action, economies of scale,
and supporting network. Using matching methods and
instrumental variable techniques, the authors find that
tobacco club membership causes an increase of between 40-74
percent in output per acre and an increase of between 45-89
percent in tobacco sales per acre. Instead, neither the land
share allocated to tobacco nor the unit value obtained by
the producers is affected by club membership.
Palabras clave
ACCESS TO CREDIT, ADVISORY SERVICES, ASYMMETRIC INFORMATION, AVAILABILITY OF CREDIT, BALING, BANK ACCOUNT, BARLEY, BEANS, BIASES, CASH CROPS, CASSAVA, CHRONIC DISEASE, COFFEE, COLLATERAL, COMMODITY, COOPERATIVES, COTTON, CREDIT ASSOCIATIONS, CREDIT CONSTRAINTS, CREDIT INSTITUTIONS, CREDIT PROGRAMS, CROP, CROP PRODUCTION, CROPPING, CULTIVATION, DEBT, DEBT REPAYMENT, DEBTS, DEMOGRAPHIC COMPOSITION, ECONOMIC GROWTH, ECONOMIES OF SCALE, EMPOWERMENT, ENDOWMENTS, EXCLUSION, EXPENDITURE, EXPENDITURES, EXPORT EARNINGS, FARM, FARM ACTIVITIES, FARM PRODUCTIVITY, FARMER, FERTILIZER, FERTILIZER USE, FINANCE COMPANY, FLOWERS, FOOD CROPS, FOOD SHORTAGES, FOREIGN DIRECT INVESTMENT, GENDER, GREEN REVOLUTION, GROUNDNUT, GROUNDNUTS, GROUP LENDING, HARVESTING, HOUSEHOLD INCOME, HUSBAND, ID, INCOME DISTRIBUTION, INFORMATION GAP, INPUT PRICES, INTERNATIONAL BANK, LAND PRODUCTIVITY, LENDERS, LIFE EXPECTANCY, LOAN, MAIZE, MARITAL STATUS, MICROFINANCE, MILLET, PEER PRESSURE, PIGEON PEAS, PINEAPPLES, POOR HOUSEHOLDS, POTATOES, PRICE INCREASES, PRODUCE, PROFIT MARGINS, PROPERTY RIGHTS, RATES OF RETURN, RICE, RISK OF DEFAULT, RISK OF PREGNANCY, RURAL FINANCE, SAFETY NETS, SAVINGS, SEEDS, SMALL FARMERS, SMALLHOLDER, SMALLHOLDER FARMERS, SMALLHOLDERS, SOCIAL NETWORK, SOCIAL NETWORKS, SOCIAL SUPPORT, SOIL QUALITY, SORGHUM, SOYBEANS, SUGAR, SUGAR CANE, TEA, TOBACCO, TOBACCO CONTROL, TOBACCO FARMERS, TOBACCO FARMING, TOBACCO GROWERS, TOBACCO MARKET, TOBACCO PRICES, TOBACCO PRODUCTION, TOBACCO SALES, TOBACCO SECTOR, TOBACCO SUPPLY, TRADE BARRIERS, TRADE FACILITATION, TRANSACTION COSTS, TRANSPORTATION SERVICES, TREE CROPS, UNMARRIED FEMALES, UNMARRIED WOMEN, URBAN AREAS, VEGETABLES, VILLAGE, VILLAGES, WEEDS, WHEAT, WOMAN, YIELDS, YOUNG WOMEN