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An econometric analysis of marketing challenges faced by horticultural farmers in Pakistan: case studies from Punjab and Khyber Pakhtunkhwa

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posted on 2022-07-22, 05:31 authored by Aliya Gul

Farm produce marketing related inefficiencies pose significant challenges to horticultural farmers in Pakistan. These inefficiencies arise when farmers are restricted to sell their produce to licensed traders in regulated markets, when they engage in credit-tied transactions or when they face credit and information barriers. When farmers face these constraints, they tend to rely heavily on middlemen for producing and marketing their crops. In this thesis, I explore the nature, extent and implications of such reliance through testing for correlations between farmers' marketing and production choices, and the impact of these choices on their output prices and net returns. In the first empirical chapter, I analyse whether tomato farmers' key production and marketing decisions are correlated. That is, I explore if farmers' decisions to market tomato produce in far and nearby markets are correlated with their other decisions, such as investing towards producing better quality tomatoes, and accessing credit and market information from the middlemen. In the second empirical chapter, I explore the impact of farmers' key production and marketing choices on their output prices and net crop returns. That is, I investigate whether farmers selling high-grade produce and travelling farther receive better prices from their traders than those who do not. Furthermore, I analyse how access to credit and market information impact farmers' market choices, and profits. In the third empirical chapter, I aim to address the following research questions such as, (a) do farmers who adopt innovative production technology (tunnel farming) also make better marketing choices? (b) what are the key determinants of tunnel technology adoption? ( c) what is the causal effect of tunnel technology adoption on price and yield when the choice of adopting tunnel technology is exogenously and endogenously determined?


Table of Contents

1 Introduction -- 2 Impact of middleman-reliance on marketing choices and profitability of tomato growers in Punjab -- 3 Analyzing the causal effects of farmers' key decisions to prices, yield and profitability: a treatment effect approach -- 4 Does tunnel farming lead to better tomato productivity and marketing outcomes compared to open-field farming? -- 5 Conclusion, study limitations and scope for future analysis -- References -- Appendices


This thesis is submitted for the degree of Doctor of Philosophy Includes bibliographical reference (pages 157-172)

Awarding Institution

Macquarie University

Degree Type

Thesis PhD


Thesis (PhD), Macquarie University, Department of Earth and Environmental Sciences, 2019

Department, Centre or School

Department of Earth and Environmental Sciences

Year of Award


Principal Supervisor

Ram Ranjan

Additional Supervisor 1

Paul J. Beggs


Copyright disclaimer: Copyright Aliya Gul 2019




xiv, 192 pages

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