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Quality labels and rural development : a new economic geography approach

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  • Jean-Marc Callois

    ()
    (UMR Métafort, Cemagref, BP 50085, 63172 Aubière cedex)

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    Abstract

    Some rural development strategies are based on the assumption that quality labels may act as levers for inducing economic growth and population migration to rural areas. To investigate the validity of this assumption, we use a new economic geography model. A specific (“labelled”) agricultural good is assumed to be produced by farmers who co-operate in order to set a monopoly price and control the number of producers. We find that there is a trade-off between the number of differentiated farmers and their individual income. Besides, the positive effect of agricultural differentiation on rural industrialization, due to increased demand for industrial goods, is offset by an opposite effect due to urban wages rise. Higher transport costs for the specific good favour rural industrialization but limit the size of the differentiated agricultural sector.

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    Bibliographic Info

    Article provided by INRA Department of Economics in its journal Cahiers d'Economie et Sociologie Rurales.

    Volume (Year): 78 (2006)
    Issue (Month): ()
    Pages: 31-51

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    Handle: RePEc:rae:jouces:v:78:y:2006:i::p:31-51

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    Postal: 4, Allée Adolphe Bobierre, CS 61103, 35011 Rennes Cedex
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    Web page: http://www.sae2.inra.fr/Departement-Recherches/Recherches-departement-SAE2/Raestud/%28key%29/3
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    Related research

    Keywords: rural development; designation of origin; new economic geography;

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    1. Diego Puga, 1996. "The Rise and Fall of Regional Inequalities," CEP Discussion Papers dp0314, Centre for Economic Performance, LSE.
    2. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," NBER Working Papers 5098, National Bureau of Economic Research, Inc.
    3. Jacques Le Pottier & Marie-Françoise Calmette, 1995. "Localisation des activités : un modèle bisectoriel avec coûts de transport," Revue Économique, Programme National Persée, vol. 46(3), pages 901-909.
    4. Maureen Kilkenny, 1995. "Transport Costs and Rural Development," Center for Agricultural and Rural Development (CARD) Publications 95-wp133, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262561476, January.
    6. P M Picard & Dao-Zhi Zeng, 2002. "On the Agricultural Part of the Core-Periphery Model," The School of Economics Discussion Paper Series 0220, Economics, The University of Manchester.
    7. Gianmarco Ottaviano & Takatoshi Tabuchi & Jacques-Francois Tissse, 1999. "Agglomeration and Trade Revisited," CIRJE F-Series CIRJE-F-65, CIRJE, Faculty of Economics, University of Tokyo.
    8. Marette, Stephan & Crespi, John M & Schiavina, Allesandra, 1999. "The Role of Common Labelling in a Context of Asymmetric Information," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 167-78, June.
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    Cited by:
    1. Yves Schaeffer & Francis Aubert, 2010. "La pertinence de la politique rurale à l’aune des théories de la justice," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 91(1), pages 73-101.

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