Quality and Inclusion of Producers in Value Chains: A Theoretical Note
AbstractThis 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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Bibliographic InfoPaper provided by LICOS - Centre for Institutions and Economic Performance, KU Leuven in its series LICOS Discussion Papers with number 24609.
Date of creation: 2009
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Other versions of this item:
- Thijs Vandemoortele & Scott Rozelle & Johan Swinnen & Tao Xiang, 2012. "Quality and Inclusion of Producers in Value Chains: A Theoretical Note," Review of Development Economics, Wiley Blackwell, vol. 16(1), pages 122-136, 02.
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