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

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

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 participat...

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Bibliographic Details
Main Authors:	Balat, Jorge, Brambilla, Irene, Porto, Guido
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	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
Online Access:	http://documents.worldbank.org/curated/en/2008/01/8965606/realizing-gains-trade-export-crops-marketing-costs-poverty http://hdl.handle.net/10986/6470

Description
Summary:	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.

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

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