The contracts between leading agribusiness enterprises and rural households: its effects on firm-level export of agricultural products
AbstractIn 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 26499.
Date of creation: Oct 2010
Date of revision:
Contracts; Agribusiness; Rural Households; Firm-level; Export;
Find related papers by JEL classification:
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
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- David A. Hennessy, 1996.
"Information Asymmetry as a Reason for Food Industry Vertical Integration,"
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