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Quality and Inclusion of Small Producers in Value Chains: A Theoretical Note

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Author Info
Thijs Vandemoortele
Scott Rozelle
Johan F.M. Swinnen
Tao Xiang

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Abstract

This paper develops a formal theory of the endogenous process of the introduction of high quality products in developing countries. Initial differences in income and capital and transaction costs are shown to affect the emergence of and the size of the high quality economy. Initial differences in the production structure and the nature of transaction costs ¨C as well as the possibility of contracting between producers and processors ¨C are shown to determine which producers are included in the high quality economy, and which not.

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File URL: http://www.econ.kuleuven.be/licos/DP/DP2009/DP246.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 24609.

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Date of creation: 2009
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Handle: RePEc:lic:licosd:24609

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  1. Dries, Liesbeth & Swinnen, Johan F. M., 2004. "Foreign Direct Investment, Vertical Integration, and Local Suppliers: Evidence from the Polish Dairy Sector," World Development, Elsevier, vol. 32(9), pages 1525-1544, September. [Downloadable!] (restricted)
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  4. Anderson, Kym & Damania, Richard & Jackson, Lee Ann, 2004. "Trade, standards, and the political economy of genetically modified food," Policy Research Working Paper Series 3395, The World Bank. [Downloadable!]
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  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. Liesbeth Dries & Thomas Reardon & Johan F. M. Swinnen, 2004. "The Rapid Rise of Supermarkets in Central and Eastern Europe: Implications for the Agrifood Sector and Rural Development," Development Policy Review, Overseas Development Institute, vol. 22, pages 525-556, 09. [Downloadable!] (restricted)
  7. Pinelopi Koujianou Goldberg & Nina Pavcnik, 2007. "Distributional Effects of Globalization in Developing Countries," NBER Working Papers 12885, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Brian Roe & Ian Sheldon, 2007. "Credence Good Labeling: The Efficiency and Distributional Implications of Several Policy Approaches," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 89(4), pages 1020-1033, November. [Downloadable!] (restricted)
  9. Farina, Elizabeth M M Q & Reardon, Thomas, 2000. " Agrifood Grades and Standards in the Extended Mercosur: Their Role in the Changing Agrifood System," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(5), pages 1170-76. [Downloadable!] (restricted)
  10. Henson, Spencer & Brouder, Ann-Marie & Mitullah, Winnie, 2000. " Food Safety Requirements and Food Exports from Developing Countries: The Case of Fish Exports from Kenya to the European Union," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 82(5), pages 1159-69. [Downloadable!] (restricted)
  11. Swinnen, J.F.M. & Vandemoortele, T., 2008. "The Political Economy of Nutrition and Health Standards in Food Markets," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44364, European Association of Agricultural Economists. [Downloadable!]
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  12. Jaskold Gabszewicz, J. & Thisse, J. -F., 1979. "Price competition, quality and income disparities," Journal of Economic Theory, Elsevier, vol. 20(3), pages 340-359, June. [Downloadable!] (restricted)
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  14. Murray Fulton & Konstantinos Giannakas, 2004. "Inserting GM Products into the Food Chain: The Market and Welfare Effects of Different Labeling and Regulatory Regimes," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 86(1), pages 42-60, 02. [Downloadable!] (restricted)
  15. Shaked, Avner & Sutton, John, 1982. "Relaxing Price Competition through Product Differentiation," Review of Economic Studies, Blackwell Publishing, vol. 49(1), pages 3-13, January. [Downloadable!] (restricted)
  16. Fischer, Ronald & Serra, Pablo, 2000. "Standards and protection," Journal of International Economics, Elsevier, vol. 52(2), pages 377-400, December. [Downloadable!] (restricted)
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  17. Dr. Peter Kenning & Hilke Plassmann, 2004. "NeuroEconomics," Experimental 0412005, EconWPA. [Downloadable!]
  18. Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics, Blackwell, vol. 23(3), pages 231-240, September. [Downloadable!] (restricted)
  19. Copeland, Brian R & Taylor, M Scott, 1995. "Trade and Transboundary Pollution," American Economic Review, American Economic Association, vol. 85(4), pages 716-37, September. [Downloadable!] (restricted)
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  20. Ellickson, Paul B., 2006. "Quality competition in retailing: A structural analysis," International Journal of Industrial Organization, Elsevier, vol. 24(3), pages 521-540, May. [Downloadable!] (restricted)
  21. Pollak, Robert A, 1985. "A Transaction Cost Approach to Families and Households," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 581-608, June. [Downloadable!] (restricted)
  22. A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn. [Downloadable!] (restricted)
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