Role Of Agricultural Commercialization In The Agricultural Transformation Of Ethiopia Trends Drivers And Impact On Well Being

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Role of agricultural commercialization in the agricultural transformation of Ethiopia: Trends, drivers, and impact on well-being

Minot, Nicholas,Warner, James,Aredo, Samson Dejene,Zewdie, Tadiwos
Role of agricultural commercialization in the agricultural transformation of Ethiopia Trends drivers and impact on well being Book PDF

Author : Minot, Nicholas,Warner, James,Aredo, Samson Dejene,Zewdie, Tadiwos
Publisher : Intl Food Policy Res Inst
Page : 68 pages
File Size : 50,5 Mb
Release : 2023-01-23
Category : Political Science
ISBN : 8210379456XXX

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Role of agricultural commercialization in the agricultural transformation of Ethiopia: Trends, drivers, and impact on well-being by Minot, Nicholas,Warner, James,Aredo, Samson Dejene,Zewdie, Tadiwos Pdf

Agricultural transformation refers to a series of changes in agriculture that both reflect and drive rising income and economic development more broadly. While the macroeconomic patterns of agricultural transformation are relatively well documented, less is known about how it is manifested at the household level. Ethiopia makes an excellent case study as it has had one of the fastest growing economies in the world. This paper focuses on one aspect of this process: agricultural commercialization, that is, the process through which an increasing share of agricultural output is sold on the market rather than being consumed at home. The analysis uses three nationally representative rural household surveys carried out in 2012, 2016, and 2019, including a panel of 1,900 households. The results show that the share of marketed agricultural output has increased significantly over the seven-year period. Somewhat surprisingly, this increase is not due to a shift in crop mix toward more commercial crops but rather an increase in the degree of commercialization of each crop. Using a correlated random effects model, we find marketed share to be significantly related to age of the head of household, farm size, wealth, distance to road, rainfall, rainfall variability, and region. Although endogeneity is a challenge, descriptive statistics and regression analysis further suggest that agricultural commercialization contributes to higher income, largely because commercial crops generate higher returns per hectare than staple grains. The results indicate that there is no clear line between “subsistence” and “commercial” farms. A large majority of farms have some crop sales, while virtually none of them sell all their output. Similarly, the contrast between subsistence crops and cash crops can be misleading. For example, the value of staple cereal sales in Ethiopia is almost three times greater than that of coffee, the main cash crop. We draw lessons from the results for the design of programs to raise rural incomes by facilitating market-oriented agricultural production.

Crop commercialization in Ethiopia: Trends, drivers, and impact on well-being

Minot, Nicholas,Warner, James,Aredo, Samson Dejene,Zewdie, Tadiwos
Crop commercialization in Ethiopia Trends drivers and impact on well being Book PDF

Author : Minot, Nicholas,Warner, James,Aredo, Samson Dejene,Zewdie, Tadiwos
Publisher : Intl Food Policy Res Inst
Page : 6 pages
File Size : 52,7 Mb
Release : 2022-12-06
Category : Political Science
ISBN : 8210379456XXX

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Crop commercialization in Ethiopia: Trends, drivers, and impact on well-being by Minot, Nicholas,Warner, James,Aredo, Samson Dejene,Zewdie, Tadiwos Pdf

Agricultural transformation refers to a series of changes in agriculture that both reflect and drive rising income and economic development more broadly. While the macroeconomic patterns of agricultural transformation are relatively well documented, less is known about how it is manifested at the household level. Ethiopia makes an excellent case study as it has had one of the fastest growing economies in the world. An important aspect of this process is agricultural commercialization, that is, the rising share of agricultural output is sold on the market rather than being consumed at home. Agricultural commercialization tends to rise with development with improved infrastructure and communications, the availability of inputs and know-how regarding commercial crop production, and farmers being willing to accept the risks associated with producing crops for the market. Agricultural commercialization is widely believed to allow farmers to earn higher income as they specialize in crops for which they have a comparative advantage. The analysis makes use of a data from three rural household surveys carried out in Ethiopia by IFPRI in 2012, 2016, and 2019. Each survey used a sample that was representative of the four main agricultural regions of the country (Tigre, Oromia, Amhara, and SNNP) with sample sizes of 3000 to 5000, including 1,900 households that were interviewed in all three rounds. In addition, we incorporate several weather variables based on CHIRPS rainfall data to estimate the effect of the level and variability of rainfall on agricultural commercialization.

Crop commercialization in Rwanda: Current market participation and drivers

Warner, James,Benimana, Gilberthe,Mugabo, Serge,Ingabire, Chantal
Crop commercialization in Rwanda Current market participation and drivers Book PDF

Author : Warner, James,Benimana, Gilberthe,Mugabo, Serge,Ingabire, Chantal
Publisher : Intl Food Policy Res Inst
Page : 32 pages
File Size : 51,8 Mb
Release : 2024-05-13
Category : Political Science
ISBN : 8210379456XXX

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Crop commercialization in Rwanda: Current market participation and drivers by Warner, James,Benimana, Gilberthe,Mugabo, Serge,Ingabire, Chantal Pdf

In this paper, we explore the current levels and participation of crop commercialization by Rwandan smallholder farmers. Our basic unit of analysis is total crop sales divided by the total value of crop production, either at the household or specific crop level. Overall, our findings suggest that approximately 80 percent of farmers participate in crop market sales and sell an average of 33 percent of their total production. However, there is a wide variety of percentage sales by crop and, in general, higher-valued crops are sold by more commercialized farm households. We also find that value of crop production per hectare rises with greater commercialization, suggesting that developing greater market commercialization, particularly with more valuable crops, may increase household incomes and aid in the economic transformation.

Agricultural intensification in Ethiopia: Patterns, trends, and welfare impacts

Berhane, Guush,Abate, Gashaw Tadesse,Wolle, Abdulazize
Agricultural intensification in Ethiopia Patterns trends and welfare impacts Book PDF

Author : Berhane, Guush,Abate, Gashaw Tadesse,Wolle, Abdulazize
Publisher : Intl Food Policy Res Inst
Page : 6 pages
File Size : 53,5 Mb
Release : 2022-12-06
Category : Political Science
ISBN : 8210379456XXX

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Agricultural intensification in Ethiopia: Patterns, trends, and welfare impacts by Berhane, Guush,Abate, Gashaw Tadesse,Wolle, Abdulazize Pdf

This study examined the patterns, trends, and drivers of agricultural intensification and productivity growth during the recent decade (2012 - 2019) using three rounds of household data collected from four agricultural regions of Ethiopia. The descriptive results indicate a positive trend both in adoption and intensity of inputs and outputs, albeit from a low base and with considerable heterogeneity by access to information, rainfall levels and variability, labor, soil quality, and remoteness, among others. The econometric results show significant association between intensification, yield growth, household dietary diversity, and consumer durables. The results on the association between current yield levels and per capita consumption expenditures are however mixed (i.e., while an increase in cereal yield improves food consumption expenditures, an increase in cash crop yield improves only non-food consumption expenditures). In sum, while the increasing input intensification and the resulting yield gains are associated with improvements in household diets and consumer durables, it falls short to have strong impact on incomes (as measured by total consumption expenditures), indicating that additional efforts must be made to see meaningful impacts on higher order outcomes. Additional welfare improving productivity gains through increased input intensification may require investments in appropriate fertilizer blends; investments in improved seeds (to accelerate varietal turnover), ways to mitigate production (rainfall) risk, and investments to remodel Ethiopia’s extension system to provide much needed technical support to farmers on production methods.

Gender implications of agricultural commercialization in Africa: Evidence from farm households in Ethiopia and Nigeria

Berhane, Guush,Abay, Mehari Hiluf,Seymour, Greg
Gender implications of agricultural commercialization in Africa Evidence from farm households in Ethiopia and Nigeria Book PDF

Author : Berhane, Guush,Abay, Mehari Hiluf,Seymour, Greg
Publisher : Intl Food Policy Res Inst
Page : 50 pages
File Size : 44,8 Mb
Release : 2023-01-03
Category : Political Science
ISBN : 8210379456XXX

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Gender implications of agricultural commercialization in Africa: Evidence from farm households in Ethiopia and Nigeria by Berhane, Guush,Abay, Mehari Hiluf,Seymour, Greg Pdf

Agricultural commercialization is often pursued as an important driver of agricultural transformation in low-income countries. However, the implications it can have on gendered outcomes are less understood. While agricultural commercialization creates opportunities to increase income, this may come at the expense of change in women’s decision-making agency and control over resources. Understanding the interactions between agricultural commercialization and gender outcomes is thus critical for policymakers aspiring to achieve agricultural transformation while promoting gender equity and the evidence on the links between the two in the context of Africa is scarce and mixed. We use three rounds of Ethiopia’s and Nigeria’s LSMS-ISA panel data to understand the implications of agricultural commercialization to gendered decision-making on crop harvest use, marketing, revenue control, asset ownership, and intrahousehold budget allocation. Results indicate commercialization is associated with decreases in women’s participation in decision-making related to use of harvest, crop marketing, and control over revenue in Ethiopia, but only on harvest use and control over revenue in Nigeria. The association with land ownership is mixed: positive in Ethiopia but negative in Nigeria. Moreover, commercialization is associated with decreases in women’s share of farm-workload but with increases in share of hired labor in Ethiopia. In Ethiopia we also find women’s control over revenue is positively associated with increases in per capita consumption expenditures and dietary diversity, but men’s control is negatively associated with increases in the share of expenditure on children’s shoes and clothes. In Nigeria, women’s control is positively associated with increases in the share of expenditure on women’s shoes and clothes, food gap, and dietary diversity. In sum, we find suggestive evidence that commercialization may further marginalize women’s decision-making agency in Ethiopia and Nigeria. However, conditional on women’s control over proceeds, commercialization tends to improve women’s as well as other members’ welfare. We provide some policy recommendations and directions for future research.

Policy drivers of Africa’s agriculture transformation: A CAADP biennial review account

Benin, Samuel
Policy drivers of Africa s agriculture transformation A CAADP biennial review account Book PDF

Author : Benin, Samuel
Publisher : Intl Food Policy Res Inst
Page : 58 pages
File Size : 42,8 Mb
Release : 2021-12-03
Category : Political Science
ISBN : 8210379456XXX

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Policy drivers of Africa’s agriculture transformation: A CAADP biennial review account by Benin, Samuel Pdf

This paper assesses the nature of agricultural transformation taking place in different parts of Africa and analyzes policy drivers of the transformation using data from the CAADP Biennial Review (BR) on 46 indicators from 2014 to 2018. First, a typology of agriculture transformation in different groups of countries is developed by analyzing the initial values and trends in three indicators—share of agriculture in total employment, share of agriculture in gross domestic product, and agriculture labor productivity. The typology, in addition to a conceptual framework that is developed for measuring the relative effect of a policy on an outcome, provides the basis for analyzing the policy drivers of agriculture transformation. The 46 BR indicators are classified into policies (13 indicators), intermediate results (23 indicators), and outcomes (10 indicators), and then econometric methods are used to measure the association between the policy indicators and the intermediate results and outcomes, which include agriculture intensification (e.g., access to finance and extension, fertilizer use, and irrigation development), agriculture growth, agriculture trade, food security, nutrition, and poverty. Different fixed-effects regression methods and model specifications of the explanatory variables are used to assess sensitivity of the results to different assumptions of the data and the relationship between the policies and intermediate and outcome indicators. The trends in the indicators are different. For example, access to finance and extension have risen over time; fertilizer use, irrigation development, agriculture growth, and adult undernourishment have fallen over time; and child nutrition and poverty have remained stagnant over time. Different policy indicators are significantly associated with different indicators of agriculture intensification, agriculture growth, and outcomes. Also, there are differences in the results across the agriculture transformation groups. Major policy drivers of agriculture transformation in the different groups are identified. Implications of the results and suggestions for future research are discussed.

Irrigation and agricultural transformation in Ethiopia

Mekonnen, Dawit Kelemework,Abate, Gashaw Tadesse,Yimam, Seid
Irrigation and agricultural transformation in Ethiopia Book PDF

Author : Mekonnen, Dawit Kelemework,Abate, Gashaw Tadesse,Yimam, Seid
Publisher : Intl Food Policy Res Inst
Page : 41 pages
File Size : 43,9 Mb
Release : 2023-01-24
Category : Political Science
ISBN : 8210379456XXX

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Irrigation and agricultural transformation in Ethiopia by Mekonnen, Dawit Kelemework,Abate, Gashaw Tadesse,Yimam, Seid Pdf

Climate change forecasts for Ethiopia predict higher temperature and rainfall and increased variability in rainfall with periodic severe droughts and floods. The increased weather variability threatens the extent of Ethiopia’s agricultural transformation unless it is supported with improved agricultural water management such as irrigation to make smallholder farming resilient to adverse weather events. This study analyzes the role of irrigation on agricultural transformation in Ethiopia by systematically comparing households with irrigated and non-irrigated plots on key agricultural transformation and welfare indictors (i.e., intensification, commercialization, and consumption expenditures). The study used a representative data from the four main agriculturally important regions of the country and employed an endogenous switching regression approach that addresses potential biases from placement of irrigation schemes and the self-selection of farmers to adopt irrigation on their plots. This approach allows for counterfactual analysis on the effect of irrigation if it is adopted on plots or in households without current irrigation as well as the counterfactual realizations of outcome variables if irrigated plots were not irrigated or irrigating households were relying only on rainfed agriculture. The main results show a positive and significant effects of irrigation on intensification, commercialization, and household welfare. Specifically, the results show that farm households with irrigated plots (i) use more fertilizer and agrochemicals, (ii) sell sizable shares of their harvest, and (iii) spend more on food and non-food expenditures. The counterfactual analysis on what would have been the effect of irrigation on currently non-irrigated plots indicate a stronger result across our outcome indicators which further suggest the importance of expanding irrigation in accelerating agricultural transformation and welfare improvement in Ethiopia.

Improving Livestock Marketing and Intra-regional Trade in West Africa

T. O. William
Improving Livestock Marketing and Intra regional Trade in West Africa Book PDF

Author : T. O. William
Publisher : ILRI (aka ILCA and ILRAD)
Page : 38 pages
File Size : 47,7 Mb
Release : 2006-01-01
Category : Agriculture
ISBN : 9789291461844

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Improving Livestock Marketing and Intra-regional Trade in West Africa by T. O. William Pdf

It analyses the economic, institutional and policy constraints to livestock marketing and trade to provide a basis for new policy interventions to improve market efficiency and intra-regional livestock trade.

Cities and agricultural transformation in Africa

Vandercasteelen, Joachim,Tamru, Seneshaw,Minten, Bart,Swinnen, Johan
Cities and agricultural transformation in Africa Book PDF

Author : Vandercasteelen, Joachim,Tamru, Seneshaw,Minten, Bart,Swinnen, Johan
Publisher : Intl Food Policy Res Inst
Page : 37 pages
File Size : 52,9 Mb
Release : 2016-07-01
Category : Political Science
ISBN : 8210379456XXX

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Cities and agricultural transformation in Africa by Vandercasteelen, Joachim,Tamru, Seneshaw,Minten, Bart,Swinnen, Johan Pdf

Due to the rapid growth of cities in Africa, many more farmers are now living in rural hinterlands in relatively close proximity to cities where many provide food to urban residents. However, empirical evidence on how urbanization affects these farmers is scarce. To fill this gap, this paper explores the relationship between proximity to a city and the production behavior of rural staple crop producers. In particular, we analyze data from teff producing farmers in major producing areas around Addis Ababa, the Ethiopian capital. We find that farmers located closer to Addis Ababa face higher wages and land rental prices, and because they receive higher teff prices they have better incentives to intensify production. Moreover, we observe that modern input use, land and labor productivity, and profitability in teff production improve with urban proximity. This urban proximity has a strong and significant effect on these aspects of teff production, possibly related to the use of more formal factor markets, lower transaction costs in crop production and marketing, and better access to information. In contrast, we do not find a strong and positive relationship between rural population density increases and agricultural transformation – increased population density seems to lead to immiserizing effects in these settings. Our results show that urban proximity should be considered as an important determinant of the process of agricultural intensification and transformation in developing countries.

Ethiopia's agrifood system: Past trends, present challenges, and future scenarios: Synopsis

Dorosh, Paul A., ed.,Minten, Bart, ed.
Ethiopia s agrifood system Past trends present challenges and future scenarios Synopsis Book PDF

Author : Dorosh, Paul A., ed.,Minten, Bart, ed.
Publisher : Intl Food Policy Res Inst
Page : 4 pages
File Size : 53,7 Mb
Release : 2020-09-14
Category : Political Science
ISBN : 8210379456XXX

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Ethiopia's agrifood system: Past trends, present challenges, and future scenarios: Synopsis by Dorosh, Paul A., ed.,Minten, Bart, ed. Pdf

Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. Ethiopia’s Agrifood System: Past Trends, Present Challenges, and Future Scenarios presents a forward-looking analysis of Ethiopia’s agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia’s Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.

Agricultural Transformation in Ethiopia

Atakilte Beyene
Agricultural Transformation in Ethiopia Book PDF

Author : Atakilte Beyene
Publisher : Zed Books Ltd.
Page : 222 pages
File Size : 52,8 Mb
Release : 2018-10-15
Category : Social Science
ISBN : 9781786992215

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Agricultural Transformation in Ethiopia by Atakilte Beyene Pdf

For thousands of years, Ethiopia has depended on its smallholding farmers to provide the bulk of its food needs. But now, such farmers find themselves under threat from environmental degradation, climate change and declining productivity. As a result, smallholder agriculture has increasingly become subsistence-oriented, with many of these farmers trapped in a cycle of poverty. Smallholders have long been marginalised by mainstream development policies, and only more recently has their crucial importance been recognised for addressing rural poverty through agricultural reform. This collection, written by leading Ethiopian scholars, explores the scope and impact of Ethiopia’s policy reforms over the past two decades on the smallholder sector. Focusing on the Lake Tana basin in northwestern Ethiopia, an area with untapped potential for growth, the contributors argue that any effective policy will need to go beyond agriculture to consider the role of health, nutrition and local food customs, as well as including increased safeguards for smallholder’s land rights. They in turn show that smallholders represent a vitally overlooked component of development strategy, not only in Ethiopia but across the global South.

Farmers’ quality assessment of their crops and its impact on commercialization behavior: A field experiment in Ethiopia

Abate, Gashaw T.,Bernard, Tanguy
Farmers quality assessment of their crops and its impact on commercialization behavior A field experiment in Ethiopia Book PDF

Author : Abate, Gashaw T.,Bernard, Tanguy
Publisher : Intl Food Policy Res Inst
Page : 44 pages
File Size : 49,9 Mb
Release : 2017-03-24
Category : Political Science
ISBN : 8210379456XXX

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Farmers’ quality assessment of their crops and its impact on commercialization behavior: A field experiment in Ethiopia by Abate, Gashaw T.,Bernard, Tanguy Pdf

Adoption of quality-enhancing technologies is often driven largely by farmers’ expected returns from these technologies. Without proper grades, standards, and certification systems, however, farmers may remain uncertain about the actual financial return associated with their quality-enhancing investments. This report summarizes the outcomes of a short video-based randomized training intervention on wheat quality measurement and collective marketing among 15,000 wheat farmers in Ethiopia. Our results suggest that the intervention led to significant changes in farmers’ commercialization behaviors—namely, it prompted farmers to adopt behaviors geared toward assessing their wheat’s quality using easily implementable test-weight measures, assessing the accuracy of the equipment used by buyers in their kebeles (scales, in particular), and contacting more than one buyer before concluding a sale. The training also led to improvements in share of output sold, price received, and collective marketing, albeit with important limitations. First, farmers who measured their wheat quality received a higher price, but only if their wheat was of higher quality. Second, farmers who found that their wheat was of higher quality were more reluctant to aggregate their wheat (that is, sell their products through local cooperatives) than those who found that their wheat was of lower quality. Lastly, the training intervention led to better use of fertilizer in the following season. Our discovery that a short training intervention can significantly change farmers’ marketing and production behavior should encourage the development of further interventions aimed at enhancing farmers’ adoption of improved technologies and commercialization.

Ethiopia's Agri-food System

Paul Anthony Dorosh,Bart Minten
Ethiopia s Agri food System Book PDF

Author : Paul Anthony Dorosh,Bart Minten
Publisher : International Food Policy Research Insitute
Page : 128 pages
File Size : 51,7 Mb
Release : 2020
Category : Social Science
ISBN : 089629692X

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Ethiopia's Agri-food System by Paul Anthony Dorosh,Bart Minten Pdf

Ethiopia has experienced impressive agricultural growth and poverty reduction, stemming in part from substantial public investments in agriculture. Yet, the agriculture sector now faces increasing land and water constraints along with other challenges to growth. In Ethiopia's Agrifood System: Past Trends, Present Challenges, and Future Scenarios, researchers from the International Food Policy Research Institute and other experts present a forward-looking analysis of Ethiopia's agrifood system in the context of a rapidly changing economy. Growth in the agriculture sector remains essential to continued poverty reduction in Ethiopia and will depend on sustained investment in the agrifood system, especially private sector investment. Many of the policies for a successful agricultural and rural development strategy for Ethiopia are relevant for other African countries, as well. Ethiopia's Agrifood System should be a valuable resource for policymakers, development specialists, and others concerned with economic development in Africa south of the Sahara.

The Impact of Policy Reform and Institutional Transformation on Agricultural Performance

Beyene Tadesse
The Impact of Policy Reform and Institutional Transformation on Agricultural Performance Book PDF

Author : Beyene Tadesse
Publisher : Peter Lang Publishing
Page : 216 pages
File Size : 54,7 Mb
Release : 2005-01-01
Category : Agriculture
ISBN : 0820476919

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The Impact of Policy Reform and Institutional Transformation on Agricultural Performance by Beyene Tadesse Pdf

Inspired by the World Bank and the International Monetary Fund, many less developed countries have carried out economic policy reforms and institutional changes. However, it has become increasingly clear that due to lags in institutional and infrastructure development results of policy reforms are unsatisfactory. This study focuses on assessing the impact of policy reform on agricultural production in Ethiopia. It investigates components of output growth, input use, technical efficiency and technological progress by applying a Stochastic Production Frontier model on a detailed rural household database. It also examines the degree of product price instability and its impacts on modern input use and food supply using a Vector Error Correction model on time series data. The study concludes by pointing out the prospects and constraints of agricultural transformation in Ethiopia.

Agricultural Commercialization, Economic Development, and Nutrition

Joachim Von Braun,Eileen T. Kennedy
Agricultural Commercialization Economic Development and Nutrition Book PDF

Author : Joachim Von Braun,Eileen T. Kennedy
Publisher : International Food Policy Research Insitute
Page : 444 pages
File Size : 49,7 Mb
Release : 1994
Category : Business & Economics
ISBN : STANFORD:36105009693388

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Agricultural Commercialization, Economic Development, and Nutrition by Joachim Von Braun,Eileen T. Kennedy Pdf

Subsistence production: a sign of market failure. Commercialization cannot be left to the market. Household effects of commercialization. Nutrition effects of commercialization. Policy action needed.