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Transaction Costs on the Ethiopian Formal Seed Market and Innovations for Encouraging Private Sector Investments

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  • Husmann, Christine

Abstract

There is a considerable shortage of improved seed in Ethiopia. Despite good reasons to invest in this market, private sector investments are not observed. Using an institutional economics theoretical framework, this paper analyzes the formal Ethiopian seed system and identifies transaction costs to find potential starting points for institutional innovations. Analyzing data from more than 60 expert interviews conducted in Ethiopia mainly in 2012, it appears that transaction costs are high along the whole seed value chain and mainly born by the government as public organizations dominate the Ethiopian seed system, leaving little room for the private sector. However, direct marketing pilots that have been started recently are a signal of careful market liberalization efforts.

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  • Husmann, Christine, 2015. "Transaction Costs on the Ethiopian Formal Seed Market and Innovations for Encouraging Private Sector Investments," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 54(1), pages 1-18, February.
    • Handle: RePEc:ags:qjiage:206296
    DOI: 10.22004/ag.econ.206296
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    1. Benedicta Nsiah Frimpong & Bright Owusu Asante & Maxwell Darko Asante & Stephen John Ayeh & Bernard Sakyiamah & Eileen Nchanji & Gaudiose Mujawamariya & Negussie Zenna & Hale Tufan, 2023. "Identification of Gendered Trait Preferences among Rice Producers Using the G+ Breeding Tools: Implications for Rice Improvement in Ghana," Sustainability, MDPI, vol. 15(11), pages 1-24, May.
    2. Mengistu, T.W., 2018. "Institutional arrangements and governance challenges in regulating seed quality in Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276018, International Association of Agricultural Economists.
    3. Essegbemon Akpo & Gebrekidan Feleke & Asnake Fikre & Mekasha Chichaybelu & Chris O. Ojiewo & Rajeev K. Varshney, 2020. "Analyzing Pathways of Nurturing Informal Seed Production into Formal Private Ventures for Sustainable Seed Delivery and Crop Productivity: Experiences from Ethiopia," Sustainability, MDPI, vol. 12(17), pages 1-18, August.

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