Agriculture Reference
In-Depth Information
the farmer prefers one market compared to the other is restricted to lie between zero and
one (0 ≤ P
i
≤ 1). It should be noted that logit (Pi)
i
) ranges from negative infinity to positive
infinity (Gujarati, 1992).
5.6 Specification of the model
The independent variables which were used in the multinomial logistic model are defined
in Table 5.1, showing their expected signs.
When the variables are fitted into the model, the model is presented as:
ln
(P
i
/ 1 - P
i
) =
B
0
+
B
1
MKTINFO
+
B
2
GRDS
+
B
3
EXT
+
B
4
ORGMEM
+
B
5
FMNGTYP
+
B
6
RDINFR
+
B
7
TRANS
+
B
8
ADDVAL
+
B
9
MKTINFR
+
B
10
STOR
+
B
11
CONTRCT
+
B
12
SOCIALK
+
B
13
PART
+
B
14
TRAD
+
Et
The variable reflecting access to market information (MKTINFO) was measured by
the household's ability to get market information in time and the ability to interpret it
correctly. In order to capture this variable closely, households were interviewed on the
communication networks that are accessible to them. Ability to communicate in either
English or Afrikaans was used to measure the accuracy of information interpretation by
Table 5.1. Definition and description of variables used in the model.
Variable
Variable description
Anticipated sign
Access to market information (MKTINFO)
have access = 1, 0 otherwise
+
Expertise on grades and standards (GRDS)
have expertise = 1, 0 otherwise
+
Access to extension contact (EXT)
have Access = 1, 0 otherwise
+
Organizational support services (ORGMEM) belong to an organization = 1, 0 otherwise
+
Type of farming (FMNGTYP)
arable farming = 1, 0 otherwise
+/-
Road infrastructure (RDINFR)
good = 1, 0 otherwise
+
Market transport (TRANS)
own transport = 1, 0 otherwise
+
Add value (ADDVAL)
add value = 1, 0 otherwise
+
Market infrastructure (MKTINFR)
good = 1, 0 otherwise
+
Storage facilities (STOR)
good = 1, 0 otherwise
+
Contractual agreements (CONTRCT)
have contract = 1, 0 otherwise
+
Social capital (SOCIALK)
extensive social capital = 1, 0 otherwise
+
Groups or individual participation (PART)
participate in a group = 1, individual participation = 0 +
Guided by tradition and beliefs (TRAD)
guided = 1, 0 otherwise
-
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