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

Author

Listed:
  • 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.

Suggested Citation

  • Peng, Chao & Zeng, Yinchu & Huang, Bo & Yabe, Mitsuyasu, 2010. "The contracts between leading agribusiness enterprises and rural households: its effects on firm-level export of agricultural products," MPRA Paper 26499, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:26499
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    References listed on IDEAS

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    1. David A. Hennessy, 1996. "Information Asymmetry as a Reason for Food Industry Vertical Integration," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(4), pages 1034-1043.
    2. Hennessy, David A., 1996. "Information Asymmetry As a Reason for Vertical Integration," Staff General Research Papers Archive 10422, Iowa State University, Department of Economics.
    3. 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.
    4. William M. Dugger, 1996. "The Mechanisms of Governance," Journal of Economic Issues, Taylor & Francis Journals, vol. 30(4), pages 1212-1216, December.
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    More about this item

    Keywords

    Contracts; Agribusiness; Rural Households; Firm-level; Export;
    All these keywords.

    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, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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