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Burley Tobacco Clubs in Malawi : Nonmarket Institutions for Exports

ACCESS TO CREDIT ADVISORY SERVICES ASYMMETRIC INFORMATION AVAILABILITY OF CREDIT BALING BANK ACCOUNT BARLEY BEANS BIASES CASH CROPS CASSAVA CHRONIC DISEASE COFFEE COLLATERAL COMMODITY COOPERATIVES COTTON CREDIT ASSOCIATIONS CREDIT CONSTRAINTS CREDIT INSTITUTIONS CREDIT PROGRAMS CROP CROP PRODUCTION CROPPING CULTIVATION DEBT DEBT REPAYMENT DEBTS DEMOGRAPHIC COMPOSITION ECONOMIC GROWTH ECONOMIES OF SCALE EMPOWERMENT ENDOWMENTS EXCLUSION EXPENDITURE EXPENDITURES EXPORT EARNINGS FARM FARM ACTIVITIES FARM PRODUCTIVITY FARMER FERTILIZER FERTILIZER USE FINANCE COMPANY FLOWERS FOOD CROPS FOOD SHORTAGES FOREIGN DIRECT INVESTMENT GENDER GREEN REVOLUTION GROUNDNUT GROUNDNUTS GROUP LENDING HARVESTING HOUSEHOLD INCOME HUSBAND ID INCOME DISTRIBUTION INFORMATION GAP INPUT PRICES INTERNATIONAL BANK LAND PRODUCTIVITY LENDERS LIFE EXPECTANCY LOAN MAIZE MARITAL STATUS MICROFINANCE MILLET PEER PRESSURE PIGEON PEAS PINEAPPLES POOR HOUSEHOLDS POTATOES PRICE INCREASES PRODUCE PROFIT MARGINS PROPERTY RIGHTS RATES OF RETURN RICE RISK OF DEFAULT RISK OF PREGNANCY RURAL FINANCE SAFETY NETS SAVINGS SEEDS SMALL FARMERS SMALLHOLDER SMALLHOLDER FARMERS SMALLHOLDERS SOCIAL NETWORK SOCIAL NETWORKS SOCIAL SUPPORT SOIL QUALITY SORGHUM SOYBEANS SUGAR SUGAR CANE TEA TOBACCO TOBACCO CONTROL TOBACCO FARMERS TOBACCO FARMING TOBACCO GROWERS TOBACCO MARKET TOBACCO PRICES TOBACCO PRODUCTION TOBACCO SALES TOBACCO SECTOR TOBACCO SUPPLY TRADE BARRIERS TRADE FACILITATION TRANSACTION COSTS TRANSPORTATION SERVICES TREE CROPS UNMARRIED FEMALES UNMARRIED WOMEN URBAN AREAS VEGETABLES VILLAGE VILLAGES WEEDS WHEAT WOMAN YIELDS YOUNG WOMEN
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World Bank, Washington, DC
Africa | Malawi
2012-05-29T13:14:10Z | 2012-05-29T13:14:10Z | 2008-03

This paper studies nonmarket institutions that facilitate exports. In Malawi, as in many other developing countries, farmers face numerous constraints that disconnect them from export markets. The paper explores the role of a local institution, the burley tobacco clubs, in bridging smallholders to exports. Burley clubs potentially enable farmers to increase their tobacco farming productivity by providing services related to institutional access, collective action, economies of scale, and supporting network. Using matching methods and instrumental variable techniques, the authors find that tobacco club membership causes an increase of between 40-74 percent in output per acre and an increase of between 45-89 percent in tobacco sales per acre. Instead, neither the land share allocated to tobacco nor the unit value obtained by the producers is affected by club membership.

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