DETERMINANTS OF MANGO FARMER CHOICES OF MODERN VS TRADITIONAL MARKET CHANNEL AND FARM TECHNOLOGY INTENSIFICATION IN JAVA INDONESIABySara Ratna Qanti This paper discusses the determinants of mango farmer participations in modern market channel and the determinants of sprayer trader use by mango farmer in Indonesia. The paper also analyzes the impact of modern market participation and sprayer trader use to the outputs, inputs use and adoption of technology done by mango farmers. The paper uses bi-probit regression for the first stage model and Zellner's Seemingly Unrelated Regression (SUR) for the second stage model. Primary data were collected in 2011 from direct interview with 416 mango farmers spread in 36 villages in Java Island (East and West Java), Indonesia. Important results suggest that: (1) participation in modern market channel and the use of sprayer trader are not determined by farm size, thus support "inclusion" of small farmers in modern channel; (2) non-land assets are important determinants of modern market channel participation and sprayer trader use by mango farmers; (3) the use of sprayer trader has insignificant effect on the probability of mango farmers to participate in modern market channel. However these two equations are endogenous; (4) household participation in the modern market channel only affects, and positively, to adoption of growth hormones.
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