Global Journal of Biology, Agriculture & Health Sciences

Abstract

Transaction Costs and Market Participation Decisions of Maize Smallholder Farmers in Dodoma Region, Tanzania

Ismail J. Ismail, Professor Madishetti Srinivas & Dr Hawa Tundui

Binary logistic regression model has been used in this study to analyze the transaction costs of market participation decisions of maize smallholder farmers in Kongwa and Mpwapwa districts of Dodoma region, Tanzania. The study also used Chi-Square Model to test the model- goodness of fit with respect to the influence of transaction costs on market participation behaviors and therefore, the overall model fit statistic (omnibus test of model coefficients) is less than 0.05 and highly significant at (P<0.001). With reference to these findings, null hypothesis was rejected in favour of the alternative hypothesis that market transaction costs influence market participation decisions of maize smallholder farmers in Dodoma region at 5% level of significance. On the other hand, two variables out of four were found to be statistically significant to determine market participation, these were transportation costs (p<0.030) and middlemen costs (p<0.002).