Impact of Rural Infrastructure on smallholder Output Market Participation in South West Ethiopia:

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Tekilu Tadesse


The objective of this study was analyzing the impact of rural infrastructure on smallholder
farmer decision to participate in output market in Jimma Zone. By using multi-stage sampling
method, the primary data was collected from a total of 397 through structured questionnaires.
Heckman two-stage selection model was employed to analyze data collected from sampled
household. The significance of coefficient of inverse Mill’s ratio ( ) indicates the presence of
selection bias and the effectiveness of applying Heckman two stage model. The results of the
study show that smallholder participation in output market were positively influenced by farm
size, sex, education, oxen, road infrastructure, telecommunication and electric services
accessibility, access to extension and accessibility of credit. On the other hand, size of family
and distance to market place discourage probability of farmer market participation decision.
Moreover, in the second stage; sex, education, farm size, amount of crop produced, road
infrastructure, telecommunication and electric services, access to extension, accessibility of
credit and access to information increase the intensification of farmers market participation.
The policy that geared towards providing rural infrastructure for rural community is believed to
enhance the level and intensity of smallholder’s farmer output market participation.

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