Determinants of agricultural market participation among market actors in Tanzania: Evidence from Morogoro Municipality local markets

Abstract

Agricultural markets play a vital role in improving livelihoods, promoting economic growth, and enhancing local government revenue through market-related charges. However, participation in agricultural markets remains uneven among market actors due to persistent institutional, infrastructural, and socio-economic constraints. This study examined the determinants of agricultural market participation among market actors in Tanzania, with particular emphasis on how these factors influence traders' participation decisions and their implications for municipal revenue collection. The market structure theory was used to guide this study. A convergent parallel mixed-methods research design was employed to generate both quantitative and qualitative evidence. Quantitative data were collected through structured questionnaires administered to 318 market actors, while qualitative data were obtained through semi-structured interviews with market managers (2) and the Municipal Director (1). Quantitative data were analyzed using descriptive statistics and binary logistic regression, whereas qualitative data were analyzed thematically and integrated with quantitative findings to strengthen interpretation through triangulation. The logistic regression results revealed that sex (p = 0.037), education level (p = 0.025), access to market information (p = 0.026), distance to market (p = 0.001), transport costs (p = 0.033), and market fees (p = 0.030) significantly influence agricultural market participation. Specifically, higher education and better access to market information increased the likelihood of participation, while greater distance to markets, high transport costs, and burdensome market fees reduced participation. Qualitative findings further demonstrated that market infrastructure, accessibility, security, supportive municipal policies, investment in market facilities, and collaboration between local authorities and traders are fundamental drivers of sustainable market participation. The findings suggested that agricultural market participation is shaped by the interaction of institutional efficiency, physical infrastructure, and traders' socio-economic capacity rather than by isolated factors. The study concluded that strengthening agricultural market participation requires integrated policy interventions that improve rural transport infrastructure, enhance dissemination of market information, review market fee structures, expand investment in market facilities, and strengthen institutional support systems for traders. Such interventions would increase traders' participation, improve market efficiency, and ultimately strengthen municipal revenue mobilization and local economic development in Tanzania.