Social networks and the exchange economy in rural Mozambique: A study of off-farm labor and crop marketing behaviors

Of the 3 billion living in rural areas in less developed regions of the world, approximately 1.2 billion people live in extreme poverty (The Economist, 2013; World Bank, 2013), and 70% of the 1.2 billion people have some dependency on agriculture (Cleaver, 2012). In sub-Saharan Africa, 47% of the population lives in extreme poverty (United Nations, 2012), 66% of the total population lives in rural areas, and more than 90% depend on agriculture for their livelihoods (Asfaw et al., 2010). Unfortunately, subsistence agriculture operates as a safety net for the poor population rather than as a driver of economic growth (World Bank, 2005). To combat extreme poverty, greater economic growth and income equality will be required (Chandy et al., 2013) and this may be achieved through poverty reduction strategies that target the productivity, profitability, and sustainability of poor farm households (Asfaw et al., 2010). By promoting rural economic growth, to include farm and off-farm opportunities, households can directly benefit from increased food security and incomes (Cord, 2002).;Many economic activities in developing countries are influenced by non-market interactions with family, friends, and acquaintances. These mutually beneficial relationships require an investment of limited household resources such as time and money away from productive activities but in the long run may expand household resources (Bolin et al., 2003). Previous studies have found that social networks affect household incomes (di Falco and Bulte, 2011; Haddad and Maluccio, 2003; Narayan and Pritchett, 1999), agricultural technology adoption (Bandiera and Rasul, 2006; Isham, 2002), employment and credit (Munshi, 2011; Wahba and Zenou, 2005), productivity (Fafchamps and Minten, 2002), and risk sharing (Fafchamps, 2011). This dissertation investigates the influence of social networks on economic behavior of agricultural households in rural Mozambique. Specifically, the dissertation has two research objectives: 1) to better understand the effect of social networks on male and female labor allocation and off-farm work choices, and 2) to determine if social networks impact agricultural marketing behaviors of rural agricultural households.;This dissertation uses an ex ante baseline socioeconomic questionnaire administered to Mozambican households by the Institute for Agricultural Research of Mozambique (IIAM) and Pennsylvania State University (PSU) as part of a multidisciplinary project funded by the McKnight Foundation. The project aims to improve food security and agro-ecosystem sustainability through the development and diffusion of common beans (Phaseolus vulgaris) bred to grow well in low phosphorous soils of Africa. Face-to-face interviews were conducted between August 2008 and August 2009 in eight villages throughout Central and Northern Mozambique. As a baseline study, the interviews provided an initial picture of household composition, labor allocation, agricultural production and technology adoption (including beans), and social networks. (Abstract shortened by UMI.).