Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/204386
Authors: 
Wendimu, Mengistu Assefa
Henningsen, Arne
Gibbon, Peter
Year of Publication: 
2015
Series/Report no.: 
IFRO Working Paper No. 2015/06
Abstract: 
Contract farming is often seen as a panacea to many of the challenges faced by agricultural production in developing countries. Given the large heterogeneity of contract farming arrangements, it is debatable whether all kinds of contract farming arrangements offer benefits to participating smallholders. We apply matching methods to analyze the effects of a public sugarcane outgrower scheme in Ethiopia. Participation in the outgrower scheme significantly reduces the income and asset stocks of outgrowers who contributed irrigated land to the outgrower scheme, while the effect was insignificant for outgrowers who contributed rain-fed land. We provide several explanations and discuss policy implications.
Subjects: 
Productivity
Outgrower scheme
contract farming
sugarcane
propensity score
genetic matching
Ethiopia
JEL: 
Q12
Q13
O13
I31
Document Type: 
Working Paper

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