Social networks, rice value chain participation and market performance of smallholder farmers in Ghana

Abstract

This paper examines the impact of rice value chain participation and social networks on smallholder farmers' market performance outcomes (paddy price, quantity of paddy traded, and net returns), using data from a recent survey of 458 smallholder rice farmers in northern Ghana. We employed a treatment effects model to account for potential selection bias associated with observable and unobservable factors. The empirical results reveal that smallholder farmers' participation in a rice value chain is associated with increased paddy price, quantity traded, and net returns. We also find that value chain participation decisions and market performance are positively and significantly influenced by social networks. The empirical results also suggest that sex, farm size, mobile phone ownership, and access to credit significantly increase paddy prices, quantity traded, and net returns of smallholder rice farmers in the value chain. 1 | INTRODUCTION In the past 2-3 decades, agricultural value chains in developing countries have experienced dramatic structural transformation, driven by several factors such as population growth, rising urbanization, increasing consumer incomes, and varying consumer dietary requirements (

Does trade in services improve African participation in global value chains?

“…Indeed, certain authors prove that services have a positive and significant effect on inclusion in GVCs (Deardorff, 2001). Some of them focus specifically on financial services (Abdul‐Rahaman & Abdulai, 2020; Liu et al, 2018; Stehrer et al, 2012; Timmer et al, 2013) while others put emphasis on services to enterprises (François & Woerz, 2008). Fernandez‐Stark et al (2011) as well as Abdul‐Rahaman and Abdulai (2020) underlines the importance of transportation.…”

“…Some of them focus specifically on financial services (Abdul‐Rahaman & Abdulai, 2020; Liu et al, 2018; Stehrer et al, 2012; Timmer et al, 2013) while others put emphasis on services to enterprises (François & Woerz, 2008). Fernandez‐Stark et al (2011) as well as Abdul‐Rahaman and Abdulai (2020) underlines the importance of transportation. Most of those studies focus on global participation (GVC) or on forward participation (DVA).…”

“…In recent years, a consensus has arisen on the importance of regional (RVC) and global (GVC) value chains, not only for better African integration into world trade, but also for African industrialization, structural transformation and sustainable development (Abdul‐Rahaman & Abdulai, 2020; UNCTAD, 2013). Nonetheless, African countries’ effective participation in GVCs is still a quest at both the global and the regional levels.…”

“…The interest in answering this question lies beyond the dynamism of the sector. Indeed, since Deardorff's (2001) article, some researchers ascertain the importance of traded or trade‐related services for effective and rewarding participation in GVCs (Abdul‐Rahaman & Abdulai, 2020; Baldwin, 2011; Conde et al, 2015; Oyejide, 2007; WTO, 2014). They describe the theoretical contribution of different types of services to production value chains, but do not provide strong empirical evidence on the effects of trade in services (TiS).…”

Youth agripreneurship in the horticultural value‐chain: The case of small‐scale mango farmers in Southern Ghana

“…On this basis, production of market‐oriented crops (such as horticultural crops), as well as targeting high value markets, is critical to poverty reduction of youth while at the same time improving the youth unemployment situation in rural areas. Thus, numerous studies (e.g., Abdul‐Rahaman & Abdulai, 2020; Fan & Garcia, 2018; Sekyi et al, 2020) provide critical factors that motivate smallholder participation in markets.…”