Understanding how and the extent to which contract farming arrangements impact agricultural productivity is important to ensuring that policies are designed to maximize the likelihood of success. Using cross-sectional data from 516 soybean farmers in Northern Ghana, we provide empirical evidence that contract farming increases soybean productivity and technical efficiency in Northern Ghana. We use propensity score matching to reduce bias from observables, and then estimate a stochastic production frontier model that addresses selection bias arising from unobservable variables. We find that the technical efficiency levels of contract farmers are 77 percent compared with 69 percent for non-contract farmers. We also find that access to credit, extension contact, and farmer group membership are key determinants of participating in contract farming.
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Huazhong Agr Univ, Coll Econ & Management, Wuhan, Peoples R ChinaHuazhong Agr Univ, Coll Econ & Management, Wuhan, Peoples R China
Min, Shi
Bai, Junfei
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China Agr Univ, Beijing Food Safety Policy & Strategy Res Base, Beijing, Peoples R China
China Agr Univ, Coll Econ & Management, Beijing, Peoples R ChinaHuazhong Agr Univ, Coll Econ & Management, Wuhan, Peoples R China
Bai, Junfei
Wang, Xiaobing
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Peking Univ, China Ctr Agr Policy, Sch Adv Agr Sci, Beijing, Peoples R China
Room 418,Wangkezhen Bldg,5 Yiheyuan Rd, Beijing 100871, Peoples R ChinaHuazhong Agr Univ, Coll Econ & Management, Wuhan, Peoples R China
Wang, Xiaobing
Waibel, Hermann
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Leibniz Univ Hannover, Inst Dev & Agr Econ, Hannover, GermanyHuazhong Agr Univ, Coll Econ & Management, Wuhan, Peoples R China
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Business School,Jiangsu Normal University
College of Economics and Management,Nanjing Agricultural UniversityBusiness School,Jiangsu Normal University
HOU Jing
ZHOU Li
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College of Economics and Management,Nanjing Agricultural UniversityBusiness School,Jiangsu Normal University
ZHOU Li
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Jennifer IFFT
YING Rui-yao
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College of Economics and Management,Nanjing Agricultural UniversityBusiness School,Jiangsu Normal University
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Jiangsu Normal Univ, Business Sch, Xuzhou 221116, Jiangsu, Peoples R China
Nanjing Agr Univ, Coll Econ & Management, Nanjing 210095, Peoples R ChinaJiangsu Normal Univ, Business Sch, Xuzhou 221116, Jiangsu, Peoples R China
Hou Jing
Zhou Li
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Nanjing Agr Univ, Coll Econ & Management, Nanjing 210095, Peoples R ChinaJiangsu Normal Univ, Business Sch, Xuzhou 221116, Jiangsu, Peoples R China
Zhou Li
Ifft, Jennifer
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Kansas State Univ, Dept Agr Econ, Manhattan, KS 66506 USAJiangsu Normal Univ, Business Sch, Xuzhou 221116, Jiangsu, Peoples R China
Ifft, Jennifer
Ying Rui-yao
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Nanjing Agr Univ, Coll Econ & Management, Nanjing 210095, Peoples R ChinaJiangsu Normal Univ, Business Sch, Xuzhou 221116, Jiangsu, Peoples R China
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Arizona State Univ, WP Carey Sch Business, Morrison Sch Agribusiness, 235M SanTan Hall,7231 E Sonoran Arroyo Mall, Mesa, AZ 85212 USAArizona State Univ, WP Carey Sch Business, Morrison Sch Agribusiness, 235M SanTan Hall,7231 E Sonoran Arroyo Mall, Mesa, AZ 85212 USA
Mishra, Ashok K.
Shaik, Saleem
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North Dakota State Univ, Dept Agribusiness & Appl Econ, 504 Richard H Barry Hall, Fargo, ND 58108 USAArizona State Univ, WP Carey Sch Business, Morrison Sch Agribusiness, 235M SanTan Hall,7231 E Sonoran Arroyo Mall, Mesa, AZ 85212 USA
Shaik, Saleem
Khanal, Aditya R.
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Tennessee State Univ, Coll Agr, Dept Agr & Environm Sci, 3500 John A Merritt Blvd, Nashville, TN 37203 USAArizona State Univ, WP Carey Sch Business, Morrison Sch Agribusiness, 235M SanTan Hall,7231 E Sonoran Arroyo Mall, Mesa, AZ 85212 USA
Khanal, Aditya R.
Bairagi, Subir
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Univ Nebraska, IRRI, SSD, Los Banos, Laguna, PhilippinesArizona State Univ, WP Carey Sch Business, Morrison Sch Agribusiness, 235M SanTan Hall,7231 E Sonoran Arroyo Mall, Mesa, AZ 85212 USA