Abstract
Abstract This paper examines the relationship between smallholder commercialisation and rural household welfare. Employing a comprehensive three-wave panel dataset of smallholder maize farmers in Ethiopia, we find a positive association between commercialisation and household income which translates to wealth endowments through asset ownership and accumulation. We also show that commercialisation is associated with poverty reduction by reducing the prevalence of income poverty and the poverty gap. Deep diving into who benefits most from commercialisation, we find that agricultural commercialisation is inclusive and benefits all households. However, the greatest welfare gains accrue to income-poor households, suggesting some potential for reducing rural inequality. These insights support existing evidence that smallholder commercialisation is pro-poor and could be a significant entry point for stirring income growth and development in rural areas. Consequently, supporting poor and marginalised farmers with resources needed to boost agricultural production and commercialisation are relevant steps in the right direction of ensuring integrated rural development.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.