Small Farmers, Ngos, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua

22 Pages Posted: 15 Apr 2020

See all articles by Hope C. Michelson

Hope C. Michelson

Columbia University - Columbia Earth Institute

Date Written: April 2013

Abstract

Despite more than a decade of NGO and government activities promoting developing world farmer participation in high‐value agricultural markets, evidence regarding the household welfare effects of such initiatives is limited. This article analyzes the geographic placement of supermarket supply chains in Nicaragua between 2000 and 2008 and uses a difference‐in‐differences specification on measures of supplier and nonsupplier assets to estimate the welfare effects of small farmer participation. Though results indicate that selling to supermarkets increases household productive asset holdings, they also suggest that only farmers with advantageous endowments of geography and water are likely to participate.

Keywords: agricultural markets, contract farming, development, Latin America, Nicaragua, supermarkets, Walmart

Suggested Citation

Michelson, Hope C., Small Farmers, Ngos, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua (April 2013). American Journal of Agricultural Economics, Vol. 95, Issue 3, pp. 628-649, 2013, Available at SSRN: https://ssrn.com/abstract=3573047 or http://dx.doi.org/10.1093/ajae/aas139

Hope C. Michelson (Contact Author)

Columbia University - Columbia Earth Institute ( email )

314 Low Library
535 West 116th Street, MC 4327
New York, NY 10027
United States

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