Market participation of smallholder groundnut farmers in Northern Ghana: Generalised double-hurdle model approach

Figures & data

Table 1. Description, unit of measurement, and expected signs of the explanatory variables in the models

Variables	Description	Measurement	Expected sign
			PRM	GLM
Sex	Sex of respondent	1 if male;0 = female	±	+
Age	Age of respondent	Years	+	+
Hhs	Household size	Number	±	+
Mst	Marital status	1 if married;0 = unmarried	±	±
Ext	Extension contacts	Number	+	+
Edu	Years of education	Number	+	+
FBO	Farmer-based organization meetings	Number of meetings in a year	+	+
Exp	Farming experience	Number of years in groundnut farming	+	+
AxInfo	Access to market information	1 if yes; 0 = No	+	+
AxMob	Access to mobile phone	1 if yes; 0 = No	+	+
OfFam	Off farm income	Cedis	+	+
Fms	Farm size	Acres	+	+
AxTras	Access to transport	1 if yes; 0 = No	+	+
Output	Quantity of groundnut harvested	Kilogram (kg)	+
FomSal	Form of groundnut sale	1 if unshelled; 0 =otherwise	±	±
OutPx	Output unit price	Bowls (2.5 Kg)	+
DMkt	Distance to output market	Kilometers (km)	-	-
Adpt	Adoption of improved groundnut variety	1 if yes; 0 = No	+	+
Inten	Intensity use of improved groundnut variety	Ratio of acres of land planted with CGS to the total size of groundnut farm in acres	+	+

Table 2. Disaggregated descriptive statistics by market participants and non-participants

Variable	Mean
	Participants	Non-participants	Difference
Age	42.042	40.832	1.210
Household size	8.368	7.116	1.252**
Years of education	2.439	2.768	−0.329
Farming experience	14.474	17.613	−3.139**
Number of FBO meetings	3.453	0.832	2.621***
Number of extension contacts	2.042	0.658	1.384***
Farm size	1.711	2.103	−0.392*
Off-farm income	1985.063	993.899	991.164***
Use intensity of improved groundnut variety	0.763	0.023	0.740***
Distance to output market	8.224	5.270	2.954***
Output unit price	9.863	8.535	1.328***
Total output (kg/acre)	337.580	251.900	85.68***

Source: Field survey (2018).

Figure 1. Percentage distribution of households’ market participation index (HMPI).

Source: Field survey (2018).

Table 3. Determinants of households’ decision to participate in groundnut market: A probit regression model (PRM)

Variables	Coefficient	Standard error	P-value
Age	−0.0174	0.0219	0.4250
Sex	1.2523	0.5524	0.0230
Marital status	−0.9093*	0.5010	0.0700
Household size	0.0128	0.0683	0.8520
Years of education	0.1032**	0.0541	0.0560
Number of FBO meetings	0.7082***	0.1874	0.0000
Off-farm income	0.0155**	0.0078	0.0460
Access to mobile phone	−0.6497	0.6318	0.3040
Number of extensions contact	0.2724**	0.1400	0.0520
Farming experience	−0.0175	0.0249	0.4840
Farm size	−1.0579***	0.2887	0.0000
Output unit price	0.4479***	0.1569	0.0040
Access to transport	1.0402**	0.4692	0.0270
Distance to output market	0.0765**	0.0402	0.0570
Access to market information	0.2526	0.4571	0.5800
Form of groundnut sale	2.1766***	0.5149	0.0000
Intensity use of an improved variety	−0.5486***	0.1490	0.0000
Total output	0.1657***	0.0457	0.0000
Constant	−0.6634	2.1245	0.7550
Number of observations = 250 Pseudo R2 = 0.797 Log likelihood = −34.092 LR chi2(18) Prob > Chi =0.000

Source: Field survey (2018).

Table 4. Determinants of level of HMPI: A generalized linear model

Variables	Coefficient	Standard error	Marginal effect
Age	−0.0130**	0.0053	−0.003
Sex	−0.0571	0.1394	−0.0133
Marital status	−0.0110	0.1430	−0.0026
Household size	−0.0153	0.0163	−0.0036
Years of education	−0.0059	0.0135	−0.0014
Number of FBO meetings	−0.0216	0.0417	−0.0051
Off-farm income	0.0023*	0.0013	0.00054
Access to mobile phone	0.1175	0.1407	0.02759
Number of extensions contact	−0.1011***	0.0397	−0.0236
Farming experience	0.0111*	0.0061	0.00258
Farm size	−0.0416	0.0293	−0.0097
Access to transport	0.1093	0.1236	0.0256
Distance to output market	0.0454***	0.0112	0.0106
Access to market information	0.0786	0.1381	0.0184
Form of groundnut sale	0.3335***	0.1325	0.0779
Adoption of an improved variety	0.4931***	0.1850	0.1132
Intensity use of an improved variety	0.0503**	0.0222	0.0117
Constant	−0.3417	0.4968
BIC = −1237.037 AIC = 1.060544 Log pseudolikelihood = −114. 5680

Source: Field survey (2018).