Title:Buying Fertilizer in Kenya: What are the Key Determinants?
Presenter: Edward Olale
Author:Edward Olale
Date: September 13 2007
Location:
Department of Food, Agricultural and Resource Economics, University of Guelph
Abstract:
Past agricultural input market participation studies have generally ignored the joint influence of income diversification, transaction costs and production risk on participation decisions. This study developed an analytical framework that simultaneously incorporates the three factors in farmer fertilizer market participation decisions. The framework was then tested in analyzing the probability and intensity of buying fertilizer in Kenya. Income diversification positively influenced fertilizer market participation while transaction costs and production risk negatively influenced fertilizer market participation. These results were confirmed by likelihood ratio tests which showed that joint inclusion of income diversification, transaction cost and production risk significantly improved the explanatory power of both the probability and intensity of fertilizer market participation models.
Presentation:
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