Impact of collective action on household welfare: Empirical evidence from baobab collectors in Malawi

Abstract

Empirical studies show that smallholder farmers can benefit from collective action by improving their crop production and access to better markets. Although there are numerous studies on the effects of collective action on production and marketing of staple crops, such studies, particularly on the analysis of gender and collective action, are scarce for underutilized crops such as baobab. To address this gap, we estimate the impacts of cooperative membership on baobab income and food security, using data collected from a survey of 864 baobab collectors in Malawi. We employ the Inverse Probability Weight Regression Adjustment estimator to account for selection bias. We also analyse heterogeneity in the impact of cooperatives attributable to gender. We find that cooperative membership increases baobab income, household dietary diversity score, and food consumption score by 3.57%, 11%, and 5.6%, respectively. However, the welfare outcome of cooperative members differs based on gender. In particular, households with male baobab managers that are cooperative members have higher income and are more food secure. Households with unmarried female managers have better welfare outcomes. The results, therefore, highlight the need to promote collective action through cooperatives in the underutilized crop sector to enhance household welfare.