The introduction of partial liberalization into Ghana’s cocoa market in 1992/1993 encouraged competition among cocoa buyers. However, since the government determines prices of cocoa bean and thus prohibits price-based competition among Licensed Buying Companies (LBCs), LBCs rely on building relationships with cocoa farmers by providing incentives like credit and loans to cocoa farmers to encourage them to sell to them preferentially. These LBCs employ non-price strategies including the provision of loans and credit to cocoa farmers. This study analyzed the effects of non-price competition on loan and credit provision by cocoa LBCs. Descriptive analysis revealed that LBCs offer credit and loans to cocoa farmers, with 37.4 and 54.7% of cocoa farmers who received loan and credit respectively citing LBCs or purchasing clerks as their main source. Our regression analyses, however, did not fully support the standard intuition that competition promotes credit and loan provisions. This indicates the limited effectiveness of the use of credit and loan provisions as a non-price competition strategy among LBCs in Ghana’s cocoa market. Additional analyses offer valuable insights, suggesting that loans and credits may serve different functions when considered as means of competition for LBCs despite being essential forms of advanced payments.
10 June 2016 in The European Journal of Development Research
Bioplastics serve as good alternatives to conventional plastics, but their production and adoption globally remain generally low. This paper sought to determine the consumer preference for bioplastics due to the urgent need for an invention on plastic pollution in Nigeria. This was achieved by employing green nudges on consumers' choice experiments on bioplastic products. The study used a sample size of 327 respondents employing the snowball sampling approach. We discovered that there was high preference heterogeneity among respondents probably due to cultural diversity and attitudinal differences. Moreover, respondents preferred to stick with their preferences instead of opting for a change in their decisions. This may have been because Nigerians are known to be brand loyalists. Our results showed that the Text treatment group thought that bioplastic labels were innovative and useful compared to the control group. This perception was probably because of the concise text on the advantages of bioplastics. We conclude that although respondents were exposed to various green nudges, there was little effect of the green nudges on their purchasing decisions. We recommend that further studies be carried out to understand why price effect was not effective in Nigeria against theory and as compared to developed countries.
The high prevalence of food insecurity and malnutrition in Kasai Oriental, Democratic Republic of the Congo, prompted an investigation into the complex relationship between household livelihood activities and food security. Despite many rural households relying on subsistence farming, this alone may not ensure improved food security in Kasai Oriental. Consequently, non-farm sectors like artisanal mining offer a potential solution to address food insecurity among rural households. The aim of this study is to explore the association between engagement in artisanal diamond mining, food insecurity, and children’s nutritional status in Kasai Oriental. The research utilizes household cross-sectional data collected between November and December 2022. Fixed effects and Instrumental variable models were employed to address household heterogeneity and potential endogeneity related to participation in artisanal diamond activities. The regression results reveal a significant relationship between participation in artisanal diamond mining and food security. This implies that participation increases households’ cash, enabling them to access sufficient food and potentially mitigating the risk of falling into food insecurity. However, involvement in artisanal mining has not shown a significant association with children’s malnutrition. These findings call for further research on “hidden hunger.” Policies aiming to encourage and formalize artisanal diamond mining should integrate specific extension services and inform rural households about hidden hunger.