Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty

This paper explores the role of export costs in the process of poverty reduction in rural Africa. We 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. We tes...

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Main Authors: Balat, Jorge, Brambilla, Irene, Porto, Guido
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/4926
id okr-10986-4926
recordtype oai_dc
spelling okr-10986-49262021-04-23T14:02:20Z Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty Balat, Jorge Brambilla, Irene Porto, Guido Country and Industry Studies of Trade F140 Measurement and Analysis of Poverty I320 Economic Development: Agriculture Natural Resources Energy Environment Other Primary Products O130 Economic Development: Human Resources Human Development Income Distribution Migration O150 International Linkages to Development Role of International Organizations O190 Agricultural Markets and Marketing Cooperatives Agribusiness Q130 Agriculture in International Trade Q170 This paper explores the role of export costs in the process of poverty reduction in rural Africa. We 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. We test the model using data from the Uganda National Household Survey. We show that: i) farmers living in villages with fewer outlets for sales of agricultural exports are likely to be poorer than farmers residing in market-endowed villages; ii) market availability leads to increased household participation in export cropping (coffee, tea, cotton, fruits); iii) households engaged in export cropping are less likely to be poor than subsistence-based households. We conclude that the availability of markets for agricultural export crops help realize the gains from trade. This result uncovers the role of complementary factors that provide market access and reduce marketing costs as key building blocks in the link between the gains from export opportunities and the poor. 2012-03-30T07:30:25Z 2012-03-30T07:30:25Z 2009 Journal Article Journal of International Economics 00221996 http://hdl.handle.net/10986/4926 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Africa
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Country and Industry Studies of Trade F140
Measurement and Analysis of Poverty I320
Economic Development: Agriculture
Natural Resources
Energy
Environment
Other Primary Products O130
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
International Linkages to Development
Role of International Organizations O190
Agricultural Markets and Marketing
Cooperatives
Agribusiness Q130
Agriculture in International Trade Q170
spellingShingle Country and Industry Studies of Trade F140
Measurement and Analysis of Poverty I320
Economic Development: Agriculture
Natural Resources
Energy
Environment
Other Primary Products O130
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
International Linkages to Development
Role of International Organizations O190
Agricultural Markets and Marketing
Cooperatives
Agribusiness Q130
Agriculture in International Trade Q170
Balat, Jorge
Brambilla, Irene
Porto, Guido
Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty
geographic_facet Africa
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description This paper explores the role of export costs in the process of poverty reduction in rural Africa. We 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. We test the model using data from the Uganda National Household Survey. We show that: i) farmers living in villages with fewer outlets for sales of agricultural exports are likely to be poorer than farmers residing in market-endowed villages; ii) market availability leads to increased household participation in export cropping (coffee, tea, cotton, fruits); iii) households engaged in export cropping are less likely to be poor than subsistence-based households. We conclude that the availability of markets for agricultural export crops help realize the gains from trade. This result uncovers the role of complementary factors that provide market access and reduce marketing costs as key building blocks in the link between the gains from export opportunities and the poor.
format Journal Article
author Balat, Jorge
Brambilla, Irene
Porto, Guido
author_facet Balat, Jorge
Brambilla, Irene
Porto, Guido
author_sort Balat, Jorge
title Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty
title_short Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty
title_full Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty
title_fullStr Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty
title_full_unstemmed Realizing the Gains from Trade: Export Crops, Marketing Costs, and Poverty
title_sort realizing the gains from trade: export crops, marketing costs, and poverty
publishDate 2012
url http://hdl.handle.net/10986/4926
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