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Contractual Arrangements of Traders in Chinese Wholesale Markets

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  • Yu, Xiaohua
  • Abler, David G.
  • Zeng, Yinchu

Abstract

Using a survey data of 700 traders, this study scrutinizes contract choices and enforcement for agricultural traders in China. This study finds that market service and environment are very important for both contract choices and enforcement. Better market service and environment can increase the propensity of using contract and the probability of contract enforcement both for purchase and sales of products. Education and memberships of special associations are also important for contract choices and enforcement. Higher education and affiliation to special associations for traders can increase the propensity of contracts and reduce contract breaches. However, the formats of contracts, whether contracts are oral or written, are not important for contract enforcement.

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File URL: http://purl.umn.edu/51399
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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51399.

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Date of creation: 20 Jun 2009
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Handle: RePEc:ags:iaae09:51399

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Related research

Keywords: Agricultural Contract; Trader; Wholesale Market; China; Agribusiness; Industrial Organization; International Development; Marketing; Risk and Uncertainty; L14; Q12; Q13;

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References

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  1. Marcel Fafchamps & Eleni Gabre-Madhin & Bart Minten, 2004. "Increasing Returns and Market Efficiency in Agricultural Trade," Development and Comp Systems 0409020, EconWPA.
  2. Beckmann, Volker & Boger, Silke, 2003. "Courts And Contract Enforcement In Transition Agriculture: Theory And Evidence From Poland," 2003 Annual Meeting, August 16-22, 2003, Durban, South Africa 25878, International Association of Agricultural Economists.
  3. Gabre-Madhin, Eleni Z., 2001. "The role of intermediaries in enhancing market efficiency in the Ethiopian grain market," Agricultural Economics, Blackwell, vol. 25(2-3), pages 311-320, September.
  4. Hamish R. Gow & Johan F. M. Swinnen, 2001. "Private Enforcement Capital and Contract Enforcement in Transition Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 686-690.
  5. Marcel Fafchamps & Bart Minten, 2001. "Social Capital and Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 680-685.
  6. Xiaohua Yu & David Abler & Chao Peng, 2011. "Dancing with the Dragon Heads: Enforcement, Innovations and Efficiency of Contracts between Agricultural Processors and Farmers in China," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 63, Courant Research Centre PEG.
  7. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November.
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Cited by:
  1. Zhigang Li & Xiaohua Yu & Yinchu Zeng & Rainer Holst, 2012. "Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 112, Courant Research Centre PEG.
  2. Waldron, Scott & Brown, Colin & Longworth, John, 2010. "A critique of high-value supply chains as a means of modernising agriculture in China: The case of the beef industry," Food Policy, Elsevier, vol. 35(5), pages 479-487, October.

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