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Governance and Contractual Structure in the Vegetable Supply Chain in Romania

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  • Alboiu, Cornelia

    ()
    (Institute of Agricultural Economics, NIER, the Romanian Academy)

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    Abstract

    The paper studies the relationship type and contractual aspects in the Romanian vegetable supply chain and farmers’ contracting choice. The paper draws on Williamsons’ governance contractual structure of non formal and formal relationship existing between farmers and buyers in order to see what type of contractual relationship is prevalent in the vegetable supply chain. It also tries to empirically analyze the key determinants of vegetable farmers’ contracting choice drawing on the transaction cost theory. The analysis is both qualitative and quantitative and uses binary choice models in order to assess the contractual choice of the vegetable producers. The analysis reveals that informal contractual relationships are prevalent on the market while in many cases the contractual enforcement is at stake.

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    File URL: http://www.ipe.ro/rjef/rjef4_12/rjef4_2012p68-82.pdf
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    Bibliographic Info

    Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

    Volume (Year): (2012)
    Issue (Month): 4 (December)
    Pages: 68-82

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    Handle: RePEc:rjr:romjef:v::y:2012:i:4:p:68-82

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    Related research

    Keywords: binary models; institutional change; vegetable chain; Romania;

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    1. Jean-Marie Codron & Zouhair Bouhsina & Fatiha Fort & Emilie Coudel & Aurélie Puech, 2004. "Supermarkets in Low-income Mediterranean Countries: Impacts on Horticulture Systems," Development Policy Review, Overseas Development Institute, vol. 22, pages 587-602, 09.
    2. Moustier, Paule & Tam, Phan Thi Giac & Anh, Dao The & Binh, Vu Trong & Loc, Nguyen Thi Tan, 2010. "The role of farmer organizations in supplying supermarkets with quality food in Vietnam," Food Policy, Elsevier, vol. 35(1), pages 69-78, February.
    3. Liesbeth Dries & Thomas Reardon & Johan F. M. Swinnen, 2004. "The Rapid Rise of Supermarkets in Central and Eastern Europe: Implications for the Agrifood Sector and Rural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 525-556, 09.
    4. Azeta Cungu & Hamish Gow & Johan F. M. Swinnen & Liesbet Vranken, 2008. "Investment with weak contract enforcement: evidence from Hungary during transition," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 35(1), pages 75-91, March.
    5. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    6. Jill E. Hobbs, 1997. "Measuring the Importance of Transaction Costs in Cattle Marketing," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(4), pages 1083-1095.
    7. Per Pinstrup-Andersen, 2002. "Food and Agricultural Policy for a Globalizing World: Preparing for the Future," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(5), pages 1201-1214.
    8. Virginie Baritaux & Magali Aubert & Etienne Montaigne & Hervé Remaud, 2006. "Matchmakers in wine marketing channels: The case of French wine brokers," Agribusiness, John Wiley & Sons, Ltd., vol. 22(3), pages 375-390.
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