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Trade, Standards and Poverty. Evidence from Senegal

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Author Info
Maertens, Miet
Swinnen, Johan F.M.

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Abstract

The debate on trade and poverty is reinforced by recent studies on the role of standards. It is argued that increasing standards act as trade barriers for developing countries and cause further marginalization of the poor. This paper is the first to quantify income and poverty effects of such high-standards trade and to integrate labor market effects, by using company and household survey data from the vegetable export chain in Senegal. We find that exports have grown sharply despite increasing standards, resulting in important income gains and poverty reduction. Our estimates indicate that poverty is 14 % points lower due to vegetable exports. Tightening food standards induced a shift from smallholder contract-based farming to large-scale integrated estate production, altering the mechanism through which poor households benefit: through labor markets instead of product markets. The impact on poverty reduction is stronger as the poorest benefit relatively more from working on large-scale farms than from contract farming.

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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 7924.

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Date of creation: 2007
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Handle: RePEc:ags:eaa106:7924

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Keywords: trade; poverty; standards; vertical coordination; contract farming; Food Security and Poverty; International Relations/Trade; F14; F16; I3; Q12; Q13; Q17;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    Other versions:
  2. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September. [Downloadable!] (restricted)
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  8. Bart Minten & Lalaina Randrianarison & Johan F.M. Swinnen, 2006. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," LICOS Discussion Papers 16406, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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  1. Miet Maertens, 2008. "Horticulture Exports, Agro-industrialization and Farm-nonfarm Linkages with the Smallholder Farm Sector: Evidence from Senegal," LICOS Discussion Papers 21408, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  2. Miet Maaertens & Johan F.M. Swinnen, 2009. "Gender and Modern Supply Chains in Developing Countries," LICOS Discussion Papers 23109, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  3. Sven Anders & Julie Caswell, 2007. "Standards-as-Barriers versus Standards-as-Catalysts: Assessing the Impact of HACCP Implementation on U.S. Seafood Imports," Working Papers 2007-7, University of Massachusetts Amherst, Department of Resource Economics. [Downloadable!]
    Other versions:
  4. Miet Maertens & Bart Minten & Jo Swinnen, 2009. "Growth in high-value export markets in Sub-Saharan Africa and its development implications," LICOS Discussion Papers 24509, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  5. Johan F.M. Swinnen & Scott Rozelle & Tao Xiang & Thijs Vandemoortele, 2008. "A Theory of Standards-Driven Rural Development," LICOS Discussion Papers 19908, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  6. Minten, Bart, 2007. "The food retail revolution in poor countries: Is it coming or is it over? Evidence from Madagascar," IFPRI discussion papers 719, International Food Policy Research Institute (IFPRI). [Downloadable!]
  7. Swinnen, Johan F.M. & Vandeplas, Anneleen, 2007. "From Public to Private Governance of Agri-food Supply Chains in Transition Countries: Some Theoretical and Empirical Lessons," 104th Seminar, September 5-8, 2007, Budapest, Hungary 8521, European Association of Agricultural Economists. [Downloadable!]
  8. Miet Maertens & Liesbeth Colen & Johan F.M. Swinnen, 2008. "Globalization and Poverty in Senegal: A Worst Case Scenario?," LICOS Discussion Papers 21708, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
  9. Minten, Bart & Reardon, Thomas & Vandeplas, Anneleen, 2009. "Linking urban consumers and rural farmers in India: A comparison of traditional and modern food supply chains," IFPRI discussion papers 883, International Food Policy Research Institute (IFPRI). [Downloadable!]
  10. 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!]
  11. Fontaine, Damien & Gaspart, Frederic & Henry de Frahan, Bruno, 2008. "Modelling the impact of private quality standards on the fresh fruit and vegetable supply chains in developing countries," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44378, European Association of Agricultural Economists. [Downloadable!]
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