Does coffee production reduce poverty? Evidence from Uganda

PurposeThe purpose of this paper is to examine the effect of coffee production on poverty among smallholder farmers.Design/methodology/approachNational Household Survey data for Uganda were triangulated with qualitative field data. A mix of propensity score matching (PSM) and quantile treatment effe...

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Bibliographic Details
Published in:Journal of agribusiness in developing and emerging economies 2017-11, Vol.7 (3), p.260-274
Main Authors: Mbowa, Swaibu, Odokonyero, Tonny, Muhumuza, Tony, Munyambonera, Ezra
Format: Article
Language:English
Subjects:
Agribusiness
Agriculture
Coffee
Coffee industry
Crops
Developing countries
Economic models
Expenditures
Farmers
Heterogeneity
Households
LDCs
Poverty
Qualitative analysis
Rural areas
Small farms
Social capital
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Summary:PurposeThe purpose of this paper is to examine the effect of coffee production on poverty among smallholder farmers.Design/methodology/approachNational Household Survey data for Uganda were triangulated with qualitative field data. A mix of propensity score matching (PSM) and quantile treatment effect techniques was employed.FindingsThe results reveal a significant effect of coffee production on poverty reduction, through incremental household consumption expenditure. Households engaged in coffee production are associated with a lower incidence of poverty. The interesting evidence suggests that coffee production is a pro-poor intervention. These findings are confirmed by qualitative assessment that reveals farmers’ welfare improved to greater extent to satisfactory levels from coffee income.Research limitations/implicationsEconometrically robust strategies were employed to ensure minimal estimation bias; however, the authors are mindful of PSM limitation of selection on observables.Originality/valueThis paper is part of a limited body of literature that combines quantitative and qualitative assessment, a growing issue in contemporary research. In addition to employing one of the conventional impact evaluation techniques, the paper accounts for heterogeneity in the effects of coffee production.
ISSN:2044-0839
2044-0847
DOI:10.1108/JADEE-01-2016-0004