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The Future of Smallholder Farming in Eastern Africa - Uganda ...

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In l<strong>in</strong>e with the research questions mentioned, this study tests several hypotheses. <strong>The</strong> first<br />

hypothesis is that liberalization has enhanced market efficiency as measured through<br />

<strong>in</strong>tegration <strong>of</strong> spatially separated maize markets. A second hypothesis is that producer prices<br />

have <strong>in</strong>creased while consumer prices have decl<strong>in</strong>ed. This situation might be a result <strong>of</strong> a<br />

reduction <strong>in</strong> market<strong>in</strong>g costs, which would <strong>in</strong> turn be the result <strong>of</strong> more open and competitive<br />

markets. A third hypothesis is that improved <strong>in</strong>frastructure has reduced market<strong>in</strong>g costs. And<br />

the f<strong>in</strong>al hypothesis is that government policy and actions <strong>of</strong> government and its agencies<br />

have had a negative effect on the performance <strong>of</strong> the market<strong>in</strong>g system.

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