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Rich consumers and poor producers: Quality and rent distribution in global value chains

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  • Swinnen, Johan F.M.
  • Vandeplas, Anneleen

Abstract

Quality standards are rapidly gaining importance as a result of increasingly globalized trade. Rich country quality requirements are said to have detrimental effects on poor producers in developing countries because they would introduce new trade barriers, prevent small and poor producers from participating in high quality supply chains, and allow multinationals to extract rents. We analyze under which conditions the introduction of quality standards in global value chains may benefit poor producers in developing countries, taking explicitly into account key characteristics of these value chains. We investigate the effects of competition and development and discuss a series of policy implications.

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Bibliographic Info

Paper provided by International Food Policy Research Institute (IFPRI) in its series IFPRI discussion papers with number 932.

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Date of creation: 2009
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Handle: RePEc:fpr:ifprid:932

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Keywords: Contract farming; Enforcement; Development; Rent distribution; High-value agriculture; Globalization; Markets;

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Cited by:
  1. Claire Delpeuch & Anneleen Vandeplas & Johan F.M.Swinnen, 2011. "Revisiting the "cotton problem": A comparative analysis of cotton reforms in sub-Saharan Africa," LICOS Discussion Papers 29011, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  2. Schuster, Monica & Maertens, Miet, 2013. "Do private standards create exclusive supply chains? New evidence from the Peruvian asparagus export sector," Working Papers 146557, Katholieke Universiteit Leuven, Centre for Agricultural and Food Economics.

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