Market participation, on-farm crop diversity and household welfare: micro-evidence from Kenya

Abstract

AbstractThis paper examines determinants of output and input market participation. It employs propensity score matching techniques to evaluate the impact of market participation on pigeonpea diversity and household welfare, using cross-sectional data of 333 households from Kenya. Results show that input and output market participation decisions are quite distinct. Output market participation is influenced by household demographics, farm size and radio ownership, while input market participation is determined by farm size, bicycle ownership and access to a salaried income. The findings reveal a positive and significant impact of output market participation on pigeonpea diversity, while input market participation had a negative and significant impact on diversity. The results indicate that output market participants have significantly higher food security status than non-participants, in line with the general findings of the literature. However, no significant impact is found between indicators of household welfare and input market participation.