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Growth in high-value export markets in Sub-Saharan Africa and its development implications

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Author Info
Miet Maertens
Bart Minten
Jo Swinnen

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Abstract

During the past decades the global food system changed dramatically with increased trade in high-value food products, increased exports from developing countries, increased consolidation and dominance of large multinational food companies, and increased proliferation of public and private food standards. As a consequence, global food trade is increasingly organised around vertically coordinated supply chains rather than around spot market transactions. While there is consensus that these structural changes are profoundly changing the way food is produced and traded, there is no consensus on the overall welfare implications of increased high-value food exports and supply chain restructuring in poor countries. In this paper we discuss the income and poverty implications of expanded horticulture exports and changing supply chain structures for rural households in Sub- Saharan African exporting countries. We put together the economic arguments; distinguish different channels through which rural households are affected; provide evidence from three comparative case-studies on high-value horticulture exports; and derive implications for policy makers, private investors, and the development aid community.

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File URL: http://www.econ.kuleuven.be/licos/DP/DP2009/DP245.pdf
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Paper provided by LICOS - Centre for Institutions and Economic Performance, K.U.Leuven in its series LICOS Discussion Papers with number 24509.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:24509

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Related research
Keywords: trade; poverty; modern supply chains; Africa;

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Find related papers by JEL classification:
F2 - International Economics - - International Factor Movements and International Business
J43 - Labor and Demographic Economics - - Particular Labor Markets - - - Agricultural Labor Markets
O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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  1. Neilson, Jeff, 2008. "Global Private Regulation and Value-Chain Restructuring in Indonesian Smallholder Coffee Systems," World Development, Elsevier, vol. 36(9), pages 1607-1622, September. [Downloadable!] (restricted)
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  3. Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January. [Downloadable!] (restricted)
    Other versions:
  4. Miet Maertens, 2009. "Horticulture exports, agro-industrialization, and farm-nonfarm linkages with the smallholder farm sector: evidence from Senegal," Agricultural Economics, International Association of Agricultural Economists, vol. 40(2), pages 219-229, 03. [Downloadable!] (restricted)
  5. Dave D. Weatherspoon & Thomas Reardon, 2003. "The Rise of Supermarkets in Africa: Implications for Agrifood Systems and the Rural Poor," Development Policy Review, Overseas Development Institute, vol. 21, pages 333-355, 05. [Downloadable!] (restricted)
  6. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February. [Downloadable!] (restricted)
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  9. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March. [Downloadable!] (restricted)
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  13. Dr. Peter Kenning & Hilke Plassmann, 2004. "NeuroEconomics," Experimental 0412005, EconWPA. [Downloadable!]
  14. Farina, Elizabeth M.M.Q. & Gutman, Graciela E. & Lavarello, Pablo J. & Nunes, Rubens & Reardon, T., 2005. "Private and public milk standards in Argentina and Brazil," Food Policy, Elsevier, vol. 30(3), pages 302-315, June. [Downloadable!] (restricted)
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