Market Access and Quality Upgrading: Evidence from Four Field Experiments
American Economic Review
vol. 112,
no. 8, August 2022
(pp. 2518-52)
Abstract
Smallholder farming in many developing countries is characterized by low productivity and low-quality output. Low quality limits the price farmers can command and their potential income. We conduct a series of experiments among maize farmers in Uganda to shed light on the barriers to quality upgrading and to study its potential. We find that the causal return to quality is zero. Providing access to a market where quality is paid a market premium led to an increase in farm productivity and income from farming. Our findings reveal the importance of demand-side constraints in limiting rural income and productivity growth.Citation
Bold, Tessa, Selene Ghisolfi, Frances Nsonzi, and Jakob Svensson. 2022. "Market Access and Quality Upgrading: Evidence from Four Field Experiments." American Economic Review, 112 (8): 2518-52. DOI: 10.1257/aer.20210122Additional Materials
JEL Classification
- C93 Field Experiments
- L14 Transactional Relationships; Contracts and Reputation; Networks
- L15 Information and Product Quality; Standardization and Compatibility
- L22 Firm Organization and Market Structure
- O13 Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products
- Q12 Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q13 Agricultural Markets and Marketing; Cooperatives; Agribusiness