The impact of transport‐and transaction‐cost reductions on food markets in developing countries: evidence for tempered expectations for Burkina Faso

Ruijs, Arjan; Schweigman, C.; Lutz, Clémens

doi:10.1111/j.1574-0862.2004.tb00259.x

Cited by 13 publications

(6 citation statements)

References 15 publications

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“…The costliness of exchange may be one of the reasons for these disparities. This view finds support from other studies on the functioning of agricultural markets (e.g., Ruijs et al, 2004; Coase, 1960; Delgado, 1999; Holloway et al, 2000), which have shown that transaction costs, which is the observable and nonobservable costs associated with exchange, are the embodiment of access barriers to market participation by resource‐poor smallholders.…”

Section: Introductionsupporting

confidence: 69%

Raising offtake from cattle grazed on natural rangelands in sub‐Saharan Africa: a transaction cost economics approach

Kyeyamwa

Speelman

Huylenbroeck

et al. 2008

Agricultural Economics

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Farmers in sub-Saharan Africa are constrained by large transaction costs associated with marketing of their livestock. However, transaction costs are often not taken into account in the analysis of factors hampering the development of livestock marketing in this region. This article empirically measures the influence of transaction costs on the offtake from cattle grazed on natural rangelands in Uganda. The study is based on the monitoring of 696 cattle transactions in three districts of Uganda from August 2004 to August 2005. The estimated models suggest that proportional transaction costs represented by the state of roads, distance to markets, and time taken to reach the market are important variables constraining market participation. In order to raise offtake from the national herd, it is essential to explicitly address these costs. One potential solution is collective action in marketing of livestock in which proportional and fixed transaction costs are reduced and shared among the group members. Copyright (c) 2008 International Association of Agricultural Economists.

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Section: Introductionsupporting

confidence: 69%

Raising offtake from cattle grazed on natural rangelands in sub‐Saharan Africa: a transaction cost economics approach

Kyeyamwa

Speelman

Huylenbroeck

et al. 2008

Agricultural Economics

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“…The selection of market outlet is largely dependent on the level of transaction costs incurred in transactions (Hobbs, 1997;Bailey & Hunnicutt, 2002). In other words, the transaction costs associated with exchanges are barriers to market access for resource-poor smallholders (Ruijs et a! ', 2004;Kyeyamwa, 2007).…”

Section: Theoretical Perspective Transaction Costs In Supply Chainsmentioning

confidence: 99%

Influence of guanxi, trust and farmer-specific factors on participation in emerging vegetable markets in China

Trienekens

Omta

et al. 2008

NJAS: Wageningen Journal of Life Sciences

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The fast development of market outlets (e.g., supermarkets, processing industries, international markets) in China provides rich opportunities for small-scale farmers to upgrade quality and increase income.However, the high level oftransaction costs incurred in small-volume-based vegetable transactions hinders farmers from participating in these emerging markets. This article explores how personal relationships (called guanxi in China) and trust between farmers and their buyers influence transaction costs in vegetable transactions, and thereby also farmers' participation in emerging markets. We interviewed 167 vegetable farmers in Jiangsu Province, which provided data for empirical testing using two-stage probit analysis with endogenous variables. The findings suggest that guanxi and trust effectively reduce transaction costs in vegetable marketing in China, which may help and encourage farmers to better participate in emerging markets. The results also reveal that farmers' age, education, marketing experience, distance to the market, production scale and land quality influence transaction costs. The article ends with policy implications with respect to efficiently reducing transaction costs in vegetable supply chains in order to create a better environment for small-scale farmers in emerging markets in China.

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“…Many scholars have been studied about what force smallholder farmer's access to market and much has been discovered. For instance, Ruijs et al (2004) and Jari and Fraser (2009) reported that good road conditions and access to market information positively influenced farmer participation and access to markets due to their effect on the decrease in transaction costs of marketing outputs.…”

Section: Introductionmentioning

confidence: 99%

Analysis of beef cattle marketing channels under transaction costs in rural Ethiopia

Dinku¹,

Abede²,

Lemma³

et al. 2021

Int. J. Agril. Res. Innov. & Tech.

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The study was designed to analyze beef cattle marketing channel choice under transaction costs. Multistage sampling technique was used to acquire primary data. Data were analyzed using descriptive statistics and the Multinomial Logit Model. The findings verified that most of the respondents (49%) were selling at the village markets, followed by farm gate and secondary market with 28% and 23%, respectively. The model results revealed that the probability of selling at farm gate and village market versus selling at secondary market increased with season sales, indicating level of market uncertainty. The results affirmed the probability of selling at village market versus selling at secondary market outlet increased with knowledge of buyer and decreased with trust in buyers. Other significant predictors were volume of beef cattle supplied, farmers' experience, and education level. Thus, policies aimed at improving the smallholder farmers’ access to cattle marketing channels should be informed by these factors. Int. J. Agril. Res. Innov. Tech. 11(1): 37-48, June 2021

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The impact of transport‐and transaction‐cost reductions on food markets in developing countries: evidence for tempered expectations for Burkina Faso

Cited by 13 publications

References 15 publications

Raising offtake from cattle grazed on natural rangelands in sub‐Saharan Africa: a transaction cost economics approach

Raising offtake from cattle grazed on natural rangelands in sub‐Saharan Africa: a transaction cost economics approach

Influence of guanxi, trust and farmer-specific factors on participation in emerging vegetable markets in China

Analysis of beef cattle marketing channels under transaction costs in rural Ethiopia

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