Data Management

Realizing The Gains From Trade: Export Crops, Marketing Costs, And Poverty

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Executive 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. They show that: farmers living in villages with fewer outlets for sales of agricultural exports are likely to be poorer than farmers residing in market-endowed villages; market availability leads to increased household participation in export cropping (coffee, tea, cotton, fruits); households engaged in export cropping are less likely to be poor than subsistence-based households.

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