The role of social grants on commercialization among smallholder farmers in South Africa: evidence from a continuous treatment approach

This study examined the role of social grants to smallholder producers' incentives to sell maize marketable surplus. The study used the generalized propensity score (GPS) matching method to analyse the data collected from a sample of 774 smallholder producers in KwaZulu-Natal. The results support the disincentive hypothesis, demonstrating a negative association between social grants and market participation levels of smallholders. The study findings imply that policies aimed at increasing smallholder commercialization should also focus on how to reduce the disincentive effects of social grants.