Market Participation and Farm Profitability: The Case of Northern Ghana

This study examines the effect of quantity sold (sales volume) on profitability market participating smallholder farmers in northern Ghana. Market participation has been shown to be important for increasing incomes and improving production efficiency farm households but still remains low SSA. While agribusiness development experts generally advocate more intensive participation, it is not clear if selling results profits remote markets that are prone exorbitant transaction costs. The data used this from APS survey conducted 2013 2014 Northern Ghana which had a sample size 527. based theory profit maximization, separability inferred observed participation. OLS regression empirical estimation after rejecting hypothesis endogeneity model. Mean gross margin/ kg across four groups ranked by also statistically examined. confirm existence economies scale show different crops have effects profitability. although unambiguously positive, relationship between may linear.