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The contracts between leading agribusiness enterprises and rural households: its effects on firm-level export of agricultural products

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  • Peng, Chao
  • Zeng, Yinchu
  • Huang, Bo
  • Yabe, Mitsuyasu

Abstract

In this paper, transaction cost is introduced into the general firm-level export behavior model. By so doing, we build a theoretical model explaining how connection modes between leading agribusiness enterprises and rural households affect the firm-level agricultural products export. Analyzing the dataset of 561 national leading agribusinesses of the year 2003, we use Tobit model to estimate the firm-level export effect of the connection modes. The empirical result demonstrates that connections in the mode of stock-cooperation or cooperation contracts have a significant positive effect on the enterprises export and export ratio. In addition, the connection with more characteristics of factor contract has stronger effect on export than that with commodity contract characteristics.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 26499.

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Date of creation: Oct 2010
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Handle: RePEc:pra:mprapa:26499

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Keywords: Contracts; Agribusiness; Rural Households; Firm-level; Export;

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  1. Hennessy, David A., 1996. "Information Asymmetry As a Reason for Food Industry Vertical Integration," Staff General Research Papers 5032, Iowa State University, Department of Economics.
  2. Klein, Nicole L. & Brester, Gary W., 1997. "Economic Impacts of the Zero Tolerance Directive on the Cost Structure of Beef Packing Companies," 1997 Annual Meeting, July 13-16, 1997, Reno\Sparks, Nevada 35743, Western Agricultural Economics Association.
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