Impact of dairy hubs on smallholder welfare: empirical evidence from Kenya

Agricultural and Food Economics

Table 3 Determinants of dairy hub participation and the impact of participation on net returns

Variable	Selection		Net returns
	Selection		Participants		Non-participants
	Coefficient	Std. error	Coefficient	Std. error	Coefficient	Std. error
Constant	0.288	0.411	1.365^**	0.640	− 1.573	2.863
Age	− 0.252	0.167	− 0.205	0.467	0.094	0.073
Education	0.394^**	0.201	3.437^***	1.196	1.901^**	0.971
Experience	0.372	0.415	0.269	0.167	0.815	0.587
Ext. service	0.395^**	0.167	2.876^**	1.132	4.215^**	1.713
Credit access	0.127^**	0.057	0.065^**	0.027	0.127^**	0.063
Landholding	0.187^**	0.087	0.537	0.378	− 0.739^*	0.413
Livestock	0.197^**	0.093	0.107^**	0.049	0.359	0.265
Distance	− 0.243^***	0.089	− 0.144^***	0.039	− 0.179^***	0.067
Sex	0.054	0.73	− 0.324	0.197	− 0.036	0.137
Off-farm	− 0.345^**	0.17	0.213	0.173	0.113^***	0.037
HH size	− 0.119^***	0.043	0.239^**	0.109	− 0.172	0.151
Dependents	− 0.261	0.173	− 0.248	0.551	0.278	0.169
F group	0.157	0.149	0.329	0.231	0.158	0.126
Res(DistExt)	0.134	0.127
lnσ_NP					0.359^***	0.104
ρ _NP					− 0.375	− 1.294
lnσ_P			0.818^***	0.241
ρ _P			− 0.459^***	0.148
Log likelihood	− 584.348
χ²Statistics for overidentification				0.565 [0.41]
Likelihood ratio test of independent equations χ²(1)				27.37^***

Note: p value in square brackets. Res(DistExt)—Res denote residuals from the first-stage regressions for distance to agriculture extension office
*Significance at the 10% level
**Significance at the 5% level
***Significance at the 1% level