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Contract Farming in China: Perspectives of Farm Households and Agribusiness Firms

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  • Hongdong Guo

    ()
    (Center for Agricultural and Rural Development, Zhejiang University, Hangzhou, Zhejiang Province 310029, P.R. China.)

  • Robert W Jolly

    ()
    (Center for Agricultural and Rural Development, Zhejiang University, Hangzhou, Zhejiang Province 310029, P.R. China.)

  • Jianhua Zhu
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    Abstract

    Contract farming in China has grown rapidly over the past 10 years. This paper examines the evolution of contract farming, and explores the incentives to engage in contract farming, preferred contract forms and contract performance from the perspective of both Chinese farmers and contracting firms. Firm and household perceptions of contracting are assessed using data obtained from village- and firm-level surveys. Farmers identify price stability and market access as the key advantages to contracts, while firms consider improved product quality as the primary incentive to use contracts. Comparative Economic Studies (2007) 49, 285–312. doi:10.1057/palgrave.ces.8100202

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    Bibliographic Info

    Article provided by Palgrave Macmillan in its journal Comparative Economic Studies.

    Volume (Year): 49 (2007)
    Issue (Month): 2 (June)
    Pages: 285-312

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    Handle: RePEc:pal:compes:v:49:y:2007:i:2:p:285-312

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    Cited by:
    1. Bachev, Hrabrin, 2010. "Study on Agrarian Contracts in Bulgaria," MPRA Paper 22946, University Library of Munich, Germany.
    2. Bachev, Hrabrin, 2010. "Framework for Analysis of Agrarian Contracts," MPRA Paper 20264, University Library of Munich, Germany.
    3. Jia, Xiangping & Hu, Yamei & Hendrikse, George & Huanga, Jikun, 2010. "Centralized versus individual: Governance of farmer professional cooperatives in China," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO) 52699, Leib­niz Institute of Agricultural Development in Central and Eastern Europe (IAMO).
    4. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: the case of sweet pepper in Thailand," Discussion Papers, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development 108349, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    5. Lorenzo Casaburi & Michael Kremer & Sendhil Mullainathan, 2014. "Contract Farming and Agricultural Productivity in Western Kenya," NBER Chapters, National Bureau of Economic Research, Inc, in: African Successes: Sustainable Growth National Bureau of Economic Research, Inc.
    6. Waldron, Scott A. & Brown, Colin G. & Longworth, John W., 2009. "China’s Agricultural Modernisation Program: an assessment of its sustainability and impacts in the case of the high-value beef chain," 2009 Conference, August 16-22, 2009, Beijing, China, International Association of Agricultural Economists 50784, International Association of Agricultural Economists.
    7. Waldron, Scott & Brown, Colin & Longworth, John, 2010. "A critique of high-value supply chains as a means of modernising agriculture in China: The case of the beef industry," Food Policy, Elsevier, Elsevier, vol. 35(5), pages 479-487, October.
    8. Guo, Hongdong & Jolly, Robert W., 2008. "Contractual arrangements and enforcement in transition agriculture: Theory and evidence from China," Food Policy, Elsevier, Elsevier, vol. 33(6), pages 570-575, December.
    9. JIA, Xiangping & HUANG, Jikun & XU, Zhigang, 2012. "Marketing of farmer professional cooperatives in the wave of transformed agrofood market in China," China Economic Review, Elsevier, Elsevier, vol. 23(3), pages 665-674.

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