Journal Article

Transport Costs and Smallholder Cropping Choices: An Application to Siaya District, Kenya

Steven Were Omamo

in American Journal of Agricultural Economics

Published on behalf of Agricultural and Applied Economics Association

Volume 80, issue 1, pages 116-123
Published in print February 1998 | ISSN: 0002-9092
Published online February 1998 | e-ISSN: 1467-8276 | DOI: http://dx.doi.org/10.2307/3180274
Transport Costs and Smallholder Cropping Choices: An Application to Siaya District, Kenya

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Smallholders regularly devote shares of resources to low-yielding food crops than they do to cash crops that have higher market returns. In this paper, costly exchange is incorporated into an agricultural household model, and a numerical nonseparable version of the model is used to show that seemingly inefficient cropping choices of this type in Siaya District, Kenya, can be explained as rational food import substitution given high transport costs in product markets. Improved rural road networks that reduce these costs could abate motives to meet food needs through domestic production and promote specialization that raises farm incomes.

Keywords: cropping choices; food import substitution; nonseparability; transport costs; O130; Q120; Q150

Journal Article.  0 words. 

Subjects: Agricultural Economics ; Economic Development

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