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Research Journal of Economics & Business Studies - RJEBS - The ...

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Table : Variable label and expected signs<br />

------------------------------------------------------------------------------------------------------------------------<br />

Variable Label Variable name Chnl1 Chnl2 Chnl3<br />

------------------------------------------------------------------------------------------------------------------------<br />

AGE Age <strong>of</strong> the farmer - + -<br />

GEN<br />

Gender<br />

EDU Education level <strong>of</strong> farmer + - +<br />

FRE Frequency <strong>of</strong> selling + + -<br />

MARKTP Information about the market price + + +<br />

MKTINFO Number <strong>of</strong> Market information sources - - +<br />

BTBUSS Buyer terminate business + - +<br />

INLAST<br />

Invested during last year<br />

INFUTURE Invested for future year - - +<br />

OWNMOB Own a mobile phone - - +<br />

PERCON Preference for contract arrangement - + -<br />

OWNSTOR Availability <strong>of</strong> own storage facilities - - +<br />

CRPIN Crop income - + +<br />

CRPLAND Cropping land area - + +<br />

EXT Access to extension service - - -<br />

-----------------------------------------------------------------------------------------------------------------------<br />

Model Equation<br />

Ln (p 1 /1-p 1 ) = β 0 + β 1 AGE + β 2 DGEN + β 3 EDU+ β 4 FRE + β 5 DMARKTP + β 6 MKTINFO<br />

+ β 7 DBTBUSS + β 8 DINLAST + β 9 DINFUTURE + β 10 DOWNMOB + β 11 DPERCON +<br />

β 12 DOWNSTOR + β 13 CRPIN + β 14 CRPLAND + β 15 DEXT + Ut<br />

Here, AGE-age <strong>of</strong> the farmer, GEN-gender, EDU-educational level <strong>of</strong> farmer, FRE-frequency <strong>of</strong><br />

selling, MARKTP-information about the market price, MKTINFO-number <strong>of</strong> market information<br />

sources, BTBUSS-buyer terminate business, OWNSTOR-availability <strong>of</strong> own storage facilities,<br />

OWNMOB-own a mobile phone, INLAST-investment during last season, INFUTURE-investment for<br />

the future season, PERCON-preference for contract arrangement, CRPIN-crop income CRPLANDcropped<br />

land area, and EXT-access to extension services. Among these three explanatory variables<br />

namely MKTINFO, PERCON and EXT were dropped from the model in order to overcome the<br />

dummy variable trap and the collinearity problem.<br />

Multinomial regression for market channel choice.<br />

Number <strong>of</strong> obs = 191<br />

LR chi2(24) = 35.74<br />

Prob > chi2 = 0.0004<br />

Log likelihood = -79.725758<br />

Pseudo R2 = 57.06<br />

www.theinternationaljournal.org > <strong>RJEBS</strong>: Volume: 02, Number: 06, April-2013 Page 47

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