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

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

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