Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/124883
Authors: 
Fung, Winnie
Liverpool-Tasie, Saweda
Mason, Nicole
Uwaifo Oyelere, Ruth
Year of Publication: 
2015
Series/Report no.: 
IZA Discussion Papers 9361
Abstract: 
The last decade has seen a resurgence of parastatal crop marketing institutions in sub-Saharan Africa, many of which cite improving food security and incomes as key goals. However, there is limited empirical evidence on the welfare effects of these programs. This article considers one such program, the Zambian Food Reserve Agency (FRA), which purchases maize from smallholder farmers at a pan-territorial price that typically exceeds maize market prices in surplus production areas. Using both fixed effects and an instrumental variables approach combined with correlated random effects, we estimate the effects of the FRA's maize marketing activities on smallholder farm household welfare. Results suggest that FRA activities have positive direct welfare effects on the small minority of smallholder households that are able to sell to it. However, the results also suggest negative indirect FRA effects, as higher levels of FRA activity in a district are associated with higher levels of poverty.
Subjects: 
crop marketing boards
strategic grain reserves
maize
smallholder farmers
income
poverty
Zambia
sub-Saharan Africa
JEL: 
Q12
Q13
Q18
I38
D31
O13
Document Type: 
Working Paper

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