Reforms, Globalization, and Endogenous Agricultural Structures
AbstractIn this paper I draw lessons from two quasi-natural experiments (the transition process in former Communist countries and the rapid globalization of food chains) on the optimality of farms and agricultural structures more generally. I argue that (a) the farm structures that have emerged from the transition process are much more diverse than expected ex ante; (b) this diversity is to an important extent determined by economic mechanisms which are influenced by initial conditions (eg technology) and reform policies; (c) non-traditional farm structures have played an important role during transition since they were optimal to address the specific institutional and structural constraints imposed by the transition process; (d) there is more diversity than often argued in the farms that are integrated in global food chains; (e) endogenous institutional (contracting) innovations in food chains may lock existing farm structures in a long-run institutional framework; and (f) indicators based on farm structures are not a good measure of welfare effects of the globalization of food chains.
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Bibliographic InfoPaper provided by European Association of Agricultural Economists in its series 111th Seminar, June 26-27, 2009, Canterbury, UK with number 52802.
Date of creation: 20 Aug 2009
Date of revision:
Agribusiness; Agricultural and Food Policy; Community/Rural/Urban Development;
Other versions of this item:
- Johan F.M. Swinnen, 2009. "Reforms, globalization, and endogenous agricultural structures," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 719-732, November.
- NEP-AGR-2009-09-19 (Agricultural Economics)
- NEP-ALL-2009-09-19 (All new papers)
- NEP-TRA-2009-09-19 (Transition Economics)
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