Theme/Relevant Ministry:

AGRICULTURE MARKET:
M/o Food Security; Agricultural Department AJ&K

Project Brief:

The research analyses the linkages between farm productivity and market participation in the presence of market access factor based on the hypothesis that households with more productivity tend to participate in the agriculture market having better market access against the null hypothesis. Mixed methods will be used to find answers. Data will be collected across all districts of AJK based on farm population comprised of household characteristics, farm variables, demographic characteristics, market-related variables and the factors that influence farmer market access. The research will be carried out in two steps:(i) technical inefficiency scores will be generated by using the stochastic production frontier model, and (ii) the Tobit model approach will be used to access the relationship between farm productivity and market participation. Market participation is defined here in terms of sales as a fraction of total output, for the sum of all agricultural crop production in the household.

Public Policy Relevance:

The major factors that affects market participation was efficiency in production, distance from road and market, credit facility, trainings, experiences and internet and refrigerator facility. All the variables were positive and significantly contributed to market participation while family size and processing negatively contributed. Policymakers and stakeholders, such as regulatory authorities and governing bodies, will benefit from this economic analysis.

Status:
In progress 90%

Unedited Working Paper and Policy Brief prepared for the Second RASTA Conference can be downloaded from the link: https://pide.org.pk/rasta/2nd-rasta-conference/