A meta-analysis understanding smallholder entry into high-value markets

Abstract

Abstract Who participates in modern agricultural value chains (henceforth high-value markets [HVMs]) and what determinants inform HVM participation remains a question of interest to researchers and policymakers. This issue is noteworthy because of the positive welfare effects of HVM participation. In this article, we review the empirical literature on determinants influencing HVM participation. We use quantitative descriptive statistics and meta-regression analysis to investigate a related unexplored question. What and to what extent do contextual factors (or moderators) affect the relevance of these determinants? We find that certain determinants are more relevant in specific regions. For example, access to credit, extension services, additional sources of income, and gender have greater relevance in Africa compared to Asia and South America, whereas membership in collective groups and access to irrigation facilities are important in Asia. We show that several moderators, most notably temporal factor, the econometric estimator employed by the primary study, the market coordination instrument and type of HVM channel either enhance or diminish the relevance of the determinants. Our findings show clearly that different regions require different policy interventions to encourage smallholder HVM participation. We discuss and frame this issue around which public and private sector value chain stakeholders are best positioned to minimise the costs and maximise the benefits and sustainability of such interventions.