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Contracts in Hungarian Food Chains

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Author Info

  • Imre Ferto

    (Corvinus University of Budapest and Institute of Economics, Hungarian Academy of Sciences, Hungary)

  • Bakucs Lajos Zoltan

    (Institute of Economics, Hungarian Academy of Sciences, Hungary)

  • Sándor Elek

    (Corvinus University of Budapest, Hungary)

  • Csaba Forgacs

    (Corvinus University of Budapest, Hungary)

Abstract

The paper analyses small and medium firms’ contractual relations along the food chain in central region of Hungary using survey data. We focus on two specific aspects of contracts: type of contract and contract fulfilment. Contrary to previous studies which concentrated only on producers’ behaviour we investigate three stages of food chain: producers, processors, and retailers. Our results confirm that firm and managerial attributes has important role in contract decisions. Moreover, transactional characteristics also influence the existence of written contract. Our estimations also reveal that contract fulfilment is significantly affected by the design of the contract. Interestingly the impact of branch specific characteristics has only limited role explaining contract decisions and contract design.

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Bibliographic Info

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This chapter was published in: Imre Ferto & Bakucs Lajos Zoltan & Sándor Elek & Csaba Forgacs , , pages 425-436, 2011.

This item is provided by University of Primorska, Faculty of Management Koper in its series MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers] with number 425-436.

Handle: RePEc:mgt:micp11:425-436

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Web page: http://www.fm-kp.si/zalozba/ISBN/978-961-266-113-7.htm
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Related research

Keywords: contractual relationship; agri-food chain; SMEs;

References

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  1. Thomas Reardon & Johan F. M. Swinnen, 2004. "Agrifood Sector Liberalisation and the Rise of Supermarkets in Former State-controlled Economies: A Comparative Overview," Development Policy Review, Overseas Development Institute, vol. 22, pages 515-523, 09.
  2. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
  3. Beckmann, Volker & Boger, Silke, 2003. "Courts And Contract Enforcement In Transition Agriculture: Theory And Evidence From Poland," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25878, International Association of Agricultural Economists.
  4. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
  5. Klein, Roger W & Spady, Richard H, 1993. "An Efficient Semiparametric Estimator for Binary Response Models," Econometrica, Econometric Society, vol. 61(2), pages 387-421, March.
  6. Gallant, A Ronald & Nychka, Douglas W, 1987. "Semi-nonparametric Maximum Likelihood Estimation," Econometrica, Econometric Society, vol. 55(2), pages 363-90, March.
  7. Rachael E. Goodhue, 2000. "Broiler Production Contracts as a Multi-Agent Problem: Common Risk, Incentives and Heterogeneity," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 606-622.
  8. Peter Bogetoft & Henrik Ballebye Olesen, 2002. "Ten rules of thumb in contract design: lessons from Danish agriculture," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 29(2), pages 185-204, June.
  9. 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.
  10. Iain Fraser, 2005. "Microeconometric analysis of wine grape supply contracts in Australia ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 23-46, 03.
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