(Translated by https://www.hiragana.jp/)
Agricultural factor markets in Sub-Saharan Africa : an updated view with formal tests for market failure
IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/7117.html
   My bibliography  Save this paper

Agricultural factor markets in Sub-Saharan Africa : an updated view with formal tests for market failure

Author

Listed:
  • Barrett,Christopher B.
  • Dillon,Brian
  • Barrett,Christopher B.
  • Dillon,Brian

Abstract

This paper uses the recently collected Living Standard Measurement Study-Integrated Surveys on Agriculture Initiative data sets from five countries in Sub-Saharan Africa to provide a comprehensive overview of land and labor market participation by agrarian households and to formally test for failures in factor markets. Under complete and competitive markets, households can solve their consumption and production problems separately, so that household factor endowments do not predict input demand. This paper implements a simple, theoretically grounded test of this separation hypothesis, which can be interpreted as a reduced form test of factor market failure. In all five study countries, the analysis finds strong evidence of factor market failure. Moreover, those failures appear general and structural, not specific to subpopulations defined by gender or geography.

Suggested Citation

  • Barrett,Christopher B. & Dillon,Brian & Barrett,Christopher B. & Dillon,Brian, 2014. "Agricultural factor markets in Sub-Saharan Africa : an updated view with formal tests for market failure," Policy Research Working Paper Series 7117, The World Bank.
    • Handle: RePEc:wbk:wbrwps:7117
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/294231468193490027/pdf/Agricultural-factor-markets-in-Sub-Saharan-Africa-an-updated-view-with-formal-tests-for-market-failure.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barrett, Christopher B., 1996. "On price risk and the inverse farm size-productivity relationship," Journal of Development Economics, Elsevier, vol. 51(2), pages 193-215, December.
    2. Dean Karlan & Robert Osei & Isaac Osei-Akoto & Christopher Udry, 2014. "Agricultural Decisions after Relaxing Credit and Risk Constraints," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(2), pages 597-652.
    3. Binswanger-Mkhize, Hans P. & Savastano, Sara, 2017. "Agricultural intensification: The status in six African countries," Food Policy, Elsevier, vol. 67(C), pages 26-40.
    4. Palacios-Lopez, Amparo & Christiaensen, Luc & Kilic, Talip, 2017. "How much of the labor in African agriculture is provided by women?," Food Policy, Elsevier, vol. 67(C), pages 52-63.
    5. Daniel LaFave & Duncan Thomas, 2016. "Farms, Families, and Markets: New Evidence on Completeness of Markets in Agricultural Settings," Econometrica, Econometric Society, vol. 84, pages 1917-1960, September.
    6. Hanan G. Jacoby, 1993. "Shadow Wages and Peasant Family Labour Supply: An Econometric Application to the Peruvian Sierra," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(4), pages 903-921.
    7. Marcel Fafchamps, 2004. "Market Institutions in Sub-Saharan Africa: Theory and Evidence," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262062364, April.
    8. Kien T. Le, 2010. "Separation Hypothesis Tests in the Agricultural Household Model," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(5), pages 1420-1431.
    9. Berg, Erlend, 2013. "Are poor people credit-constrained or myopic? Evidence from a South African panel," Journal of Development Economics, Elsevier, vol. 101(C), pages 195-205.
    10. Deininger,Klaus W. & Xia,Fang & Savastano,Sara, 2015. "Smallholders? land ownership and access in Sub-Saharan Africa: a new landscape ?," Policy Research Working Paper Series 7285, The World Bank.
    11. Emmanuel Skoufias, 1994. "Using Shadow Wages to Estimate Labor Supply of Agricultural Households," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 76(2), pages 215-227.
    12. Cheryl R. Doss & Michael L. Morris, 2000. "How does gender affect the adoption of agricultural innovations?," Agricultural Economics, International Association of Agricultural Economists, vol. 25(1), pages 27-39, June.
    13. Christopher B. Barrett & Shane M. Sherlund & Akinwumi A. Adesina, 2008. "Shadow wages, allocative inefficiency, and labor supply in smallholder agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 21-34, January.
    14. Udry, Christopher, 1996. "Gender, Agricultural Production, and the Theory of the Household," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1010-1046, October.
    15. Paswel P. Marenya & Christopher B. Barrett, 2009. "State-conditional Fertilizer Yield Response on Western Kenyan Farms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(4), pages 991-1006.
    16. Benjamin, Dwayne, 1992. "Household Composition, Labor Markets, and Labor Demand: Testing for Separation in Agricultural Household Models," Econometrica, Econometric Society, vol. 60(2), pages 287-322, March.
    17. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-1417, November.
    18. David Stifel & Bart Minten, 2008. "Isolation and agricultural productivity," Agricultural Economics, International Association of Agricultural Economists, vol. 39(1), pages 1-15, July.
    19. Lau, Lawrence J & Lin, Wuu-Long & Yotopoulos, Pan A, 1978. "The Linear Logarithmic Expenditure System: An Application to Consumption-Leisure Choice," Econometrica, Econometric Society, vol. 46(4), pages 843-868, July.
    20. de Janvry, Alain & Fafchamps, M. & Sadoulet, Elisabeth, 1991. "Peasant Household Behavior with Missing Markets: Some Paradoxes Explain," CUDARE Working Papers 198579, University of California, Berkeley, Department of Agricultural and Resource Economics.
    21. Ricker-Gilbert, Jacob & Jayne, Thomas S. & Black, J. Roy, 2009. "Does Subsidizing Fertilizer Increase Yields? Evidence from Malawi," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49532, Agricultural and Applied Economics Association.
    22. Robert J. Myers & T.S. Jayne, 2012. "Multiple-Regime Spatial Price Transmission with an Application to Maize Markets in Southern Africa," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(1), pages 174-188.
    23. Feder, Gershon, 1985. "The relation between farm size and farm productivity : The role of family labor, supervision and credit constraints," Journal of Development Economics, Elsevier, vol. 18(2-3), pages 297-313, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kopper, Sarah A., 2018. "Agricultural labor markets and fertilizer demand: Intensification is not a single factor problem for non-separable households," 2018 Annual Meeting, August 5-7, Washington, D.C. 274184, Agricultural and Applied Economics Association.
    2. Tsuda, Shunsuke, 2022. "Refugee inflows, surplus farm labor, and crop marketization in rural Africa," Journal of Development Economics, Elsevier, vol. 155(C).
    3. Thottappilly, Anna, 2021. "Identifying the Income Effect on Nutrition for Agricultural Households: Separability of Production and Consumption," 2021 Conference, August 17-31, 2021, Virtual 315335, International Association of Agricultural Economists.
    4. Maria Jones & Florence Kondylis & John Loeser & Jeremy Magruder, 2022. "Factor Market Failures and the Adoption of Irrigation in Rwanda," American Economic Review, American Economic Association, vol. 112(7), pages 2316-2352, July.
    5. Merfeld, Joshua D., 2020. "Smallholders, Market Failures, and Agricultural Production: Evidence from India," IZA Discussion Papers 13682, Institute of Labor Economics (IZA).
    6. Daniel R. LaFave & Evan D. Peet & Duncan Thomas, 2020. "Farm Profits, Prices and Household Behavior," NBER Working Papers 26636, National Bureau of Economic Research, Inc.
    7. Béatrice D'HOMBRES & Jean-Louis ARCAND, 2006. "Testing for Separation in Agricultural Household Models and Unobservable Household-Specific Effects," Working Papers 200632, CERDI.
    8. Dillon, Brian & Brummund, Peter & Mwabu, Germano, 2019. "Asymmetric non-separation and rural labor markets," Journal of Development Economics, Elsevier, vol. 139(C), pages 78-96.
    9. Peter Brummund & Joshua D. Merfeld, 2022. "Should farmers farm more? Comparing marginal products within Malawian households," Agricultural Economics, International Association of Agricultural Economists, vol. 53(2), pages 289-306, March.
    10. Christopher B. Barrett & Shane M. Sherlund & Akinwumi A. Adesina, 2008. "Shadow wages, allocative inefficiency, and labor supply in smallholder agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 21-34, January.
    11. Hayatullah Ahmadzai, 2018. "Factor market participation and tests for separability in Afghanistan," Discussion Papers 2018-10, University of Nottingham, CREDIT.
    12. Ayala Wineman & Thomas S. Jayne, 2021. "Factor Market Activity and the Inverse Farm Size-Productivity Relationship in Tanzania," Journal of Development Studies, Taylor & Francis Journals, vol. 57(3), pages 443-464, March.
    13. Katharina Grabrucker & Michael Grimm, 2021. "Is There a Rainbow after the Rain? How Do Agricultural Shocks Affect Non‐Farm Enterprises? Evidence from Thailand," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(5), pages 1612-1636, October.
    14. Dimitris Christopoulos & Margarita Genius & Vangelis Tzouvelekas, 2021. "Farm and non-farm labor decisions and household efficiency," Journal of Productivity Analysis, Springer, vol. 56(1), pages 15-31, August.
    15. Kamau, Mercy W. & Burger, Kees & Giller, Ken E., 2007. "Labour allocative efficiency and factors influencing farm households interaction with the labour market," 106th Seminar, October 25-27, 2007, Montpellier, France 7947, European Association of Agricultural Economists.
    16. Hernandez-Solano, A. & Yunez-Naude, A., 2018. "The shadow value of agricultural land rent of rural households and alternative uses of land for sustainable development: the case of Mexico," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277260, International Association of Agricultural Economists.
    17. Eleonora Matteazzi & Martina Menon & Federico Perali, 2017. "The Collective Farm-household Model: Policy and Welfare Simulations," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 39(1), pages 111-153.
    18. Tocco, Barbara & Davidova, Sophia & Bailey, Alastair Creation-Date: 2012-02, "undated". "Key Issues in Agricultural Labour Markets: A Review of Major Studies and Project Reports on Agriculture and Rural Labour Markets," Factor Markets Working Papers 126, Centre for European Policy Studies.
    19. André, Pierre & Delesalle, Esther & Dumas, Christelle, 2021. "Returns to farm child labor in Tanzania," World Development, Elsevier, vol. 138(C).
    20. Barrett, Christopher B. & Bellemare, Marc F. & Hou, Janet Y., 2010. "Reconsidering Conventional Explanations of the Inverse Productivity-Size Relationship," World Development, Elsevier, vol. 38(1), pages 88-97, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:7117. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.