Effects of transaction costs on choice of selling point : a case of smallholder banana growers in the great lakes region of Central Africa

摘要

This article examines the effects of transaction costs on the choice of marketing channel bysmallholder banana producers (i.e. travel to the market to sell their produce versus selling atthe farmgate). A probit analysis is used to identify the factors which determine the choice ofa selling point. Variables capturing transaction costs are used in the analysis and these relateto searching for a trading partner, gathering information about the transaction, contracting,negotiating, monitoring and enforcing of contracts. The findings reveal that collective action,gender of household head, degree of dependence on the crop, geographical location andaccess to price information significantly affect the choice of selling point. This suggests thatpolicies aimed at establishing market information systems, promotion of collective actionamong smallholder farmers, increased investment in rural infrastructure and achieving genderbalance in trade are important.