2021 Volume 23 Pages 101-106
Smallholders’ market participation decision is shaped by the transaction costs they face as well as their shadow prices. These shadow prices vary across farmers depending on the comparative advantage. In this study, we test the hypothesis that farmers enter the crop market according to their comparative advantage. The results suggest that crop net selling is associated with farmer’s comparative advantage, regardless of the market access factors. This implies that conclusions drawn from single crop case studies should be taken with caution, since farmers may participate in a competing crop market as net sellers based on their comparative advantage.