Burley Tobacco Clubs in Malawi: Nonmarket Institutions for Exports

45 Pages Posted: 20 Apr 2016

See all articles by Mariano Negri

Mariano Negri

World Bank

Guido G. Porto

World Bank; National Bureau of Economic Research (NBER)

Date Written: March 1, 2008

Abstract

This paper studies nonmarket institutions that facilitate exports. In Malawi, as in many other developing countries, farmers face numerous constraints that disconnect them from export markets. The paper explores the role of a local institution, the burley tobacco clubs, in bridging smallholders to exports. Burley clubs potentially enable farmers to increase their tobacco farming productivity by providing services related to institutional access, collective action, economies of scale, and supporting network. Using matching methods and instrumental variable techniques, the authors find that tobacco club membership causes an increase of between 40-74 percent in output per acre and an increase of between 45-89 percent in tobacco sales per acre. Instead, neither the land share allocated to tobacco nor the unit value obtained by the producers is affected by club membership.

Keywords: Tobacco Use and Control, Alcohol and Substance Abuse, Crops & Crop Management Systems, Adolescent Health, Access to Finance

Suggested Citation

Negri, Mariano and Porto, Guido, Burley Tobacco Clubs in Malawi: Nonmarket Institutions for Exports (March 1, 2008). World Bank Policy Research Working Paper No. 4561, Available at SSRN: https://ssrn.com/abstract=1108709

Mariano Negri (Contact Author)

World Bank ( email )

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Guido Porto

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

HOME PAGE: http://econ.worldbank.org/staff/gporto

National Bureau of Economic Research (NBER)

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