The role of avocado production and trade in major producing Districts, Tanzania: Income inequality decomposition approach
Loading...
Date
2023-09-29
Journal Title
Journal ISSN
Volume Title
Publisher
Scientific Research Publishing Inc.
Abstract
This paper investigates whether the production of avocado for the export
trade is an income inequality decreasing source of livelihood of producers in
Tanzania or not using the evidence from the Hai and Rungwe districts. Data
were collected using a semi-structured questionnaire from avocado producers
in the study areas. The Gini decomposition technique was employed to ana-
lyse the nature and source of income inequality amongst the avocado pro-
ducers in the study areas. The results of the analysis showed that, on average
34% of the total household income was derived from production of avocados
for export. The Gini decomposition analysis revealed an income inequality
index of 0.748 for the pooled sample. The Gini index for avocado production
was 0.537. The study also showed that avocado production for export trade
was the increasing source of income inequality in the study areas with a rela-
tive concentration of 0.794 and 0.9944 in gini decomposition and coefficient
of variation respectively. Gini decomposition and coefficient of variation re-
veal salary to be the most inequality-increasing source of income in the study
areas. The production of avocados for exportation provides not only addi-
tional income but also improves the living standards of smallholder farmers,
and it narrows their income gaps. We recommend the promotion and scaling
up of the production of avocados as one of the key economic activities that
would help tackle the problem of income inequality in rural areas suitable for
the production of Hass avocadoes for export in the country.
Description
Modern Economy, pp.1620-1636
Keywords
Avocado, Tanzania, Exportation Trade, Income Inequality