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The role of social grants on commercialization among smallholder farmers in South Africa: Evidence from a continuous treatment approach
Author(s) -
Sinyolo Sikhulumile,
Mudhara Maxwell,
Wale Edilegnaw
Publication year - 2019
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/agr.21601
Subject(s) - commercialization , propensity score matching , incentive , matching (statistics) , sample (material) , business , economics , public economics , agribusiness , agricultural economics , economic growth , marketing , agriculture , geography , market economy , statistics , chemistry , mathematics , archaeology , chromatography
This study examined the role of social grants to smallholder producers’ incentives to sell maize marketable surplus. The study used the generalized propensity score (GPS) matching method to analyse the data collected from a sample of 774 smallholder producers in KwaZulu‐Natal. The results support the disincentive hypothesis, demonstrating a negative association between social grants and market participation levels of smallholders. The study findings imply that policies aimed at increasing smallholder commercialization should also focus on how to reduce the disincentive effects of social grants.