Negative Income Shocks, Agricultural Intensification, and Household Welfare in Tanzania: Do SACCOs and Self-Help Groups Cushion the Impact?

This study examines the impact of negative income shocks on agricultural intensification – measured by the use of improved seeds and inorganic fertiliser – and household welfare among maize-growing smallholders in Tanzania. It also assesses whether membership in savings and credit cooperative societies (SACCOs) and self-help groups (SHGs) helps cushion these effects.

The findings reveal that negative income shocks significantly reduce the adoption of improved seeds but have no significant effect on the use of inorganic fertiliser. The adverse impact is more substantial for idiosyncratic shocks than for covariate ones. We also find that SACCOs and SHGs generally do not mitigate the effects of shocks.

Available at: https://doi.org/10.55158/DEEPCFWP17