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This book uses econometric and economy-wide models to examine the determinants of participation and performance of smallholders in cotton and tobacco contract farming in Mozambique, and assess the poverty effects of expansion and policies. While it finds tobacco more technically demanding and profitable for smallholders, in both sectors, productivity gains generate stronger effects than world prices. Results from the CGE model, show that income diversification ensures that non-growers dont fall behind when interventions focus on growers in those sectors. Labor market linkages and technology...