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Have coffee producers benefited from the new domestic cherry market? Evidence using panel data from Rwanda
Author(s) -
Murekezi Abdoul,
Jin Songqing,
Loveridge Scott
Publication year - 2014
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/agec.12101
Subject(s) - panel data , instrumental variable , estimation , economics , agricultural economics , market share , business , agricultural science , econometrics , finance , environmental science , management
The article assesses the effects of the new domestic cherry market on coffee‐growing households in Rwanda using panel data. Findings from combined first differenced with instrumental variable specification and other estimation methods provide evidence that farmers who sell to the cherry market do not increase their expenditures compared to farmers selling to the traditional parchment market. The different time lags in terms of when farmers started selling to the new cherry market may explain the lack of statistically significant differences across the two groups. It is possible that farmers will adjust their expenditure patterns in subsequent periods after year‐over‐year market trends become more apparent to them.