“…However, the utility difference (
) is unobservable, but can be specified as a function of observable factors in a latent variable framework as follows:
where
is a binary decision indicator, which equals one if farmer
participates in agri‐value chains, and zero otherwise;
denotes a vector of unknown parameters to be estimated;
represents a vector of observable factors. These include age, education, gender, household size, mobile phone ownership, irrigation, farm size, access to credit, farmer group membership, extension visits, distance to available farm plots and location variables, drawn from existing literature (e.g., Abdul‐Rahaman & Abdulai,
2020; Awafo & Owusu,
2022; Kafle et al,
2022; Ogutu et al,
2020; Rao & Qaim,
2011; Tray et al,
2021; Zhang et al,
2019).
is the error term.…”