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Analysing the role of institutional arrangements: vegetable value chains in East Africa

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  • Eaton, Derek J.F.
  • Meijerink, Gerdien W.
  • Bijman, Jos
  • Belt, John

Abstract

Institutional innovations are increasingly seen as key to achieving not only agricultural growth, by overcoming market failures, but also to ensure that poor smallholders also benefit from this process. This paper analyses institutional arrangements for vegetable marketing in East Africa from a transaction cost perspective. Marketing of vegetables is still dominated by spot markets with some, but still limited, movement towards farmers' engaging collectively in contract farming through producers' organisations. It appears that little is understood concerning how farmers and traders have overcome transaction costs in such situations, and this area deserves increased attention. An understanding of how institutional change occurs is necessary if donor agencies wish to support this process.

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Bibliographic Info

Paper provided by European Association of Agricultural Economists in its series 106th Seminar, October 25-27, 2007, Montpellier, France with number 7921.

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Date of creation: 2007
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Handle: RePEc:ags:eaa106:7921

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Keywords: Agribusiness; Institutional and Behavioral Economics;

References

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  1. Jonathan Kydd & Andrew Dorward, 2006. "Implications of Market and Coordination Failures for Rural Development in Least Developed Countries," Working Papers id:762, eSocialSciences.
  2. Minot, Nicholas & Ngigi, Margaret, 2004. "Are horticultural exports a replicable success story?: evidence from Kenya and Côte d'Ivoire," EPTD discussion papers 120, International Food Policy Research Institute (IFPRI).
  3. Swinnen, Johan F.M. & Vandeplas, Anneleen & Maertens, Miet, 2007. "Governance and Surplus Distribution in Commodity Value Chains in Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7950, European Association of Agricultural Economists.
  4. 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.
  5. Arne Bigsten & Paul Collier & Stefan Dercon & Marcel Fafchamps & Bernard Gauthier & Jan Willem Gunning & Abena Oduro & Remco Oostendorp & Cathy Patillo & Mans Soderbom & Francis Teal & Albert Zeufack, 1999. "Contract Flexibility and Dispute Resolution in African Manufacturing," CSAE Working Paper Series 1999-20, Centre for the Study of African Economies, University of Oxford.
  6. repec:fth:oxesaf:99-20 is not listed on IDEAS
  7. Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
  8. Claude Ménard, 2005. "New institutions for governing the agri-food industry," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 421-440, September.
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Cited by:
  1. Mujawamariya, Gaudiose & D'Haese, Marijke F.C. & Burger, Kees, 2010. "Influence of interlocked transactions on gum arabic production and marketing in Senegal," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96826, African Association of Agricultural Economists (AAAE);Agricultural Economics Association of South Africa (AEASA).
  2. Mujawamariya, Gaudiose & Burger, Kees & D'Haese, Marijke F.C., 2012. "Behaviour and performance of traders in the gum arabic supply chain in Senegal: Investigating oligopsonistic myths," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126236, International Association of Agricultural Economists.

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