Impact Of Agricultural Market Reforms On Smallholder Farmers In ...

Larger farms are associated with higher per capita expenditure. Each additional hectare planted
in the main season is associated with a 3 percent increase in per capita expenditure, and each
additional hectare planted in the second season has a similar effect.
Having some bas-fond land is related to a 26 percent increase in per capita expenditure, holding
other variables constant. This relatively large effect shows the value to the household of being
able to grow vegetables and other water-intensive crops.
Having a wall made of brick, rather than mud-brick or mud, is associated with higher per capita
expenditure. Although clearly not a causal factor, the type of wall is a good indicator of the
standard of living of the households.
Households that own a table, radio, and/or a motorbike are likely to have higher per capita
expenditures that those that do not. Each item is associated with a 9-11 percent increase in the
expected per capita expenditure of the household.
Finally, expenditure levels vary across departments, after holding education, farm size, and
other variables constant. Per capita expenditure in Atacora, Borgou, Ouémé, Mono, and Zou
are lower than that in Atlantique, with a 5 percent level of statistical significance. Although
these regional variables capture differences in soils, rainfall, infrastructure, and ethnicity, the
most likely explanation for this result is that households in Atlantique have better access to
agricultural markets and employment opportunities in the urban centers of Cotonou and Port
Novo.
A number of other variables were unexpectedly not associated with higher standards of living. For
example, cotton growers are neither poorer nor richer than other farmers, after controlling for other
variables (such as farm size and household size). Similarly, housing characteristics such as a
cement or tile floor, a metal roof, and electrification are not useful predictors of household wellbeing.
Incidence of poverty for different types of households
This section examines the incidence of poverty in different types of households. In order
make the results compatible with the Enquête sur les Conditions de Vie Rurales (ECVR), we adopt
the “global poverty line” used in calculating the incidence of poverty in the ECVR. In order to
93