Local Trade Networks among Farmers and Traders

Both farmers and traders benefit from trade networking, which is crucial for the local economy. Therefore, it is crucial to understand how these networks operate, and how they can be managed more effectively. Throughout this study, we examine the economic networks formed between farmers and traders through the trade of food products. These networks are analyzed from the perspective of their structure and the factors that influence their development. Using data from 18 farmers and 15 traders, we applied exponential random graph models. The results of our study showed that connectivity, Popularity Spread, activity spread, good transportation systems, and high yields all affected the development of networks. Therefore, farmers’ productivity and high market demand can contribute to local food-crop trade. The network was not affected by reciprocity, open markets, proximity to locations, or trade experience of actors. Policy makers should consider these five factors when formulating policies for local food-crop trade. Additionally, local actors should be encouraged to use these factors to improve their network development. However, it is important to note that these factors alone cannot guarantee success. Policy makers and actors must also consider other factors such as legal frameworks, economic policies, and resource availability. Our approach can be used in future research to determine how traders and farmers can enhance productivity and profit in West Africa. This study addresses a research gap by examining factors influencing local food trade in a developing country.