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Governance and Surplus Distribution in Commodity Value Chains in Africa

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

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Abstract

The governance of food markets is a crucial element for efficiency and distributional effects. In this paper, we use a conceptual model to show that this governance itself is endogenous in an environment of weak contract enforcement and imperfect markets, and importantly depends on the value in the chain. We relate the predictions of the theory to empirical evidence on differences in supply chain governance in Africa across different commodity types. In doing so we offer an explanation as why private sector governance systems with interlinked market transactions have emerged for higher value crops but not for staple food crops. We discuss the efficiency and equity effects and the implications for policy.

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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 7950.

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Date of creation: 2007
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Handle: RePEc:ags:eaa106:7950

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Keywords: Agribusiness;

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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.:

  1. Delgado, Christopher L., 1995. "Agricultural diversification and export promotion in sub-Saharan Africa," Food Policy, Elsevier, vol. 20(3), pages 225-243, June. [Downloadable!] (restricted)
  2. Fafchamps, Marcel & Minten, Bart, 1998. "Relationships and traders in Madagascar," MTID discussion papers 24, International Food Policy Research Institute (IFPRI). [Downloadable!]
  3. Kirsten, Johann & Sartorius, Kurt, 2002. "Linking Agribusiness And Small-Scale Farmers In Developing Countries: Is There A New Role For Contract Farming?," Working Papers 18025, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development. [Downloadable!]
  4. Asfaw Negassa & T.S. Jayne, 1997. "The Response of Ethiopian Grain Markets to Liberalization," International Development Collaborative Working Papers ET-FSRP-WP-06, Department of Agricultural Economics, Michigan State University. [Downloadable!]
  5. Bell, Clive, 1988. "Credit markets and interlinked transactions," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 16, pages 763-830 Elsevier. [Downloadable!] (restricted)
  6. 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!]
  7. Hoff, Karla & Stiglitz, Joseph E., 1998. "Moneylenders and bankers: price-increasing subsidies in a monopolistically competitive market," Journal of Development Economics, Elsevier, vol. 55(2), pages 485-518, April. [Downloadable!] (restricted)
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  8. Johan F. M. Swinnen & Miet Maertens, 2007. "Globalization, privatization, and vertical coordination in food value chains in developing and transition countries," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 89-102, December. [Downloadable!] (restricted)
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  9. Salop, Steven C, 1979. "A Model of the Natural Rate of Unemployment," American Economic Review, American Economic Association, vol. 69(1), pages 117-25, March. [Downloadable!] (restricted)
  10. 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!]
  11. Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, K.U.Leuven. [Downloadable!]
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  12. Diao, Xinshen & Dorosh, Paul A. & Rahman, Shaikh Mahfuzur, 2003. "Market opportunities for African agriculture," DSGD discussion papers 1, International Food Policy Research Institute (IFPRI). [Downloadable!]
  13. Aksoy, M. Ataman & Beghin, John C., 2005. "Global Agricultural Trade and Developing Countries," Staff General Research Papers 12228, Iowa State University, Department of Economics. [Downloadable!]
  14. Fafchamps, Marcel & Minten, Bart, 2001. "Property Rights in a Flea Market Economy," Economic Development and Cultural Change, University of Chicago Press, vol. 49(2), pages 229-67, January.
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  15. Jayne, T. S. & Govereh, J. & Mwanaumo, A. & Nyoro, J. K. & Chapoto, A., 2002. "False Promise or False Premise? The Experience of Food and Input Market Reform in Eastern and Southern Africa," World Development, Elsevier, vol. 30(11), pages 1967-1985, November. [Downloadable!] (restricted)
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  1. Eaton, Derek & Meijerink, Gerdien & Bijman, Jos & Belt, John, 2007. "Analysing the role of institutional arrangements: vegetable value chains in East Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7921, European Association of Agricultural Economists. [Downloadable!]
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