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

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Author Info
Eaton, Derek
Meijerink, Gerdien
Bijman, Jos
Belt, John

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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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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;

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References listed on IDEAS
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  1. Bigsten, A. & Collier, P. & Fafchamps, M. & Dercon, S. & Gauthier, B. & Gunning, J.W. & Oduro, A. & OOstendorp, R. & Patillo, C. & Sederbom, M. & Teal, F. & Zeufack, A., 1999. "Contract Flexibility and Dispute Resolution in African Manufacturing," Working Papers Series 99-20, Centre for the Study of African Economies, University of Oxford.
  2. Sykuta, Michael E & Cook, Michael L, 2001. " A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 83(5), pages 1273-79. [Downloadable!] (restricted)
  3. Claude Ménard, 2005. "New institutions for governing the agri-food industry," European Review of Agricultural Economics, Oxford University Press for the Foundation for the European Review of Agricultural Economics, vol. 32(3), pages 421-440, September.
  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. [Downloadable!] (restricted)
  5. Jonathan Kydd & Andrew Dorward, 2004. "Implications of market and coordination failures for rural development in least developed countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(7), pages 951-970. [Downloadable!]
  6. 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). [Downloadable!]
  7. 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. [Downloadable!]
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