Participation of farmers in market value chains: A tailored Antràs and Chor positioning indicator

Abstract

This study presents a micro-level indicator of farmers’ positioning in the market chain, based on the conceptual framework outlined by Antràs and Chor (2013, 2018). The indicator considers the selling location of a farming household and its crop buyers. Using panel data from the World Bank’s ‘Living Standards Measurement Study: Integrated Surveys on Agriculture’ for Ethiopia and Nigeria, this paper applies the proposed indicator empirically and showcases its superior performance in comparison to existing alternatives at the micro-level. Furthermore, by analyzing the dynamics of farmers’ food and total consumption over time and controlling for vari-ous household and production characteristics, as well as potential confounding factors, this study shows that moving towards a downstream position in the market chain has a positive impact on farmers’ food and total consumption levels. The results are validated through sensitivity analysis and robustness checks.