Transaction costs play a key role in the behaviour of smallholders in developing countries. We investigate smallholder tobacco cultivation in Malawi, Malawi's major export crop, and exploit the introduction of an additional tobacco auction floor to measure the impact of a reduction in...

Transaction costs play a key role in the behaviour of smallholders in developing countries. We exploit the introduction of an additional tobacco auction floor in Malawi to investigate the impact of a reduction in transaction costs and improved market access on production per hectare and the...

We measure the impact of a reduction in transaction costs on crop area and production decisions of smallholder tobacco growers in Malawi. For identification we exploit the introduction of an additional tobacco auction floor. Estimations are based on annual data by Extension Planning Area. A 10%...

Transaction costs play a key role in the behaviour of smallholders in developing countries. We exploit the quasi experimental design of the introduction of an additional tobacco auction floor in Malawi in order to investigate the impact of a reduction in transaction costs and improved market...