Research Article

Determinants of Garlic Producers Market Outlet Choices in Goncha Siso Enese District, Northwest Ethiopia: A Multivariate Probit Regression Analysis

Table 5

Multivariate probit estimation for determinants of garlic producer outlet choice.

VariablesMarket outlet choice
ConsumersRetailersWholesalersAssemblers
Coeff (Se)Coeff (Se)Coeff (Se)Coeff (Se)

 Age−0.017 (0.01)0.005 (0.01)0.004 (0.02)−0.008 (0.01)
 Sex−0.069 (0.26)−0.166 (0.21)−0.412 (0.32)0.642 (0.25)
 Household size−0.001 (0.07)0.068 (0.05)−0.029 (0.08)0.082 (0.05)
 Education−0.047 (0.05)−0.107 (0.04)0.085 (0.05)0.019 (0.03)
 Livestock holdings (TLU)0.000 (0.05)0.022 (0.04)−0.030 (0.06)−0.008 (0.04)
 Land size0.03 (0.11)−0.080 (0.09)0.177 (0.14)0.079 (0.10)
 Extension contacts−0.393 (0.15)−0.180 (0.08)0.227 (0.11)−0.195 (0.08)
 Access to credit0.195 (0.27)−0.513 (0.20)1.621 (0.27)−0.246 (0.20)
 Distance to market−0.014 (0.05)−0.029 (0.04)0.321 (0.08)0.119 (0.04)
 Access to market information−0.515 (0.25)−0.297 (0.19)0.274 (0.26)1.007 (0.19)
 Lagged price of garlic0.000 (0.00)0.000 (0.00)−0.000 (0.00)−0.000 (0.00)
 Quantity of garlic sold−0.437 (0.09)0.147 (0.07)0.466 (0.12)0.227 (0.07)
 Garlic farm experience−0.021 (0.01)0.016 (0.01)−0.002 (0.01)0.005 (0.01)
 Land area for garlic0.468 (0.48)−0.768 (0.33)−0.178 (0.45)−1.193 (0.32)
 Constant2.256 (0.73)−1.251 (0.63)−2.103 (1.42)−1.521 (0.87)

Multivariate probit (MSL, # draws = 5)
 Number of obs = 359
 Wald chi2 (56) = 266.52

Log likelihood = −488.03361

Prob > chi2 = 0.0000

Predicted probability0.28166320.32289280.33999450.2230343
 Joint probability (success)0.0000189
 Joint probability (failure)0.1172155

Estimated correlation matrixρ1 (Y1)ρ2 (Y2)ρ3 (Y3)ρ4 (Y4)
ρ1 (Y1)1.00
ρ2 (Y2)−0.441 (0.08)1.00
ρ3 (Y3)0.292 (0.15)−0.384 (0.12)1.00
ρ4 (Y4)−0.358 (0.11)−0.292(0.10)−0.288 (0.12)1.00

Likelihood ratio test of rho21 = rho31 = rho41 = rho32 = rho42 = rho43 = 0: chi2 (6) = 77.1817
 Prob > chi2 = 0.0000

, , and are significant at 1%, 5%, and 10% level of significance, respectively. Y1, Y2, Y3, and Y4 are consumers, retailers, wholesalers, and assemblers, respectively. Source: own survey results (2022).