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Coordination risk and cost impacts on economic development in poor rural areas

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  • Dorward, Andrew
  • Kydd, Jonathan
  • Poulton, Colin
  • Bezemer, Dirk

Abstract

This paper addresses issues relevant to a critical problem in economic development: how to get rapid pro-poor economic growth in poor rural areas in Africa and South Asia where most of the world’s dollar a day poor live. It examines constraints to the development of coordinated exchange systems in poor rural areas, focusing on the core problem of thin markets and low density of economic activity in these areas. Transaction cost and risk analysis is integrated into a conventional neoclassical production economics framework to describe the existence of low level equilibrium traps in transactions and supply chains and to generate important insights for development policy.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 7028.

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Date of creation: Jul 2007
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Handle: RePEc:pra:mprapa:7028

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Keywords: Development; agriculture; market liberalization; coordination problem;

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References

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  1. Andrew Dorward, 2001. "The Effects of Transaction Costs, Power and Risk on Contractual Arrangements: A Conceptual Framework for Quantitative Analysis," Journal of Agricultural Economics, Wiley Blackwell, Wiley Blackwell, vol. 52(2), pages 59-73.
  2. Jonathan Kydd & Andrew Dorward, 2006. "Implications of Market and Coordination Failures for Rural Development in Least Developed Countries," Working Papers id:762, eSocialSciences.
  3. Bezemer, Dirk J & Headey, Derek, 2007. "Agriculture, Development and Urban Bias," MPRA Paper 7026, University Library of Munich, Germany.
  4. Poulton, Colin & Gibbon, Peter & Hanyani-Mlambo, Benjamine & Kydd, Jonathan & Maro, Wilbald & Larsen, Marianne Nylandsted & Osorio, Afonso & Tschirley, David & Zulu, Ballard, 2004. "Competition and Coordination in Liberalized African Cotton Market Systems," World Development, Elsevier, Elsevier, vol. 32(3), pages 519-536, March.
  5. Colin Poulton & Andrew Dorward & Jonathan Kydd, 1998. "The revival of smallholder cash crops in Africa: public and private roles in the provision of finance," Journal of International Development, John Wiley & Sons, Ltd., vol. 10(1), pages 85-103.
  6. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, Elsevier, vol. 38(10), pages 1413-1428, October.
  7. Dorward, Andrew & Kydd, Jonathan & Morrison, Jamie & Urey, Ian, 2002. "A Policy Agenda For Pro Poor Agricultural Growth," ADU Working Papers, Imperial College at Wye, Department of Agricultural Sciences 10923, Imperial College at Wye, Department of Agricultural Sciences.
  8. Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas. & Johnson, Michael., 2000. "The road half traveled," Food policy reports, International Food Policy Research Institute (IFPRI) 10, International Food Policy Research Institute (IFPRI).
  9. Kherallah, Mylène & Delgado, Christopher L. & Gabre-Madhin, Eleni Z. & Minot, Nicholas & Johnson, Michael, 2002. "Reforming agricultural markets in Africa," Food policy statements, International Food Policy Research Institute (IFPRI) 38, International Food Policy Research Institute (IFPRI).
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Cited by:
  1. Lemeilleur, Sylvaine & Codron, Jean-Marie, 2011. "Marketing cooperative vs. commission agent: The Turkish dilemma on the modern fresh fruit and vegetable market," Food Policy, Elsevier, Elsevier, vol. 36(2), pages 272-279, April.
  2. Apata, Temidayo Gabriel & Folayan, A. & Apata, O.M. & Akinlua, J., 2011. "The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK, Agricultural Economics Society 108942, Agricultural Economics Society.
  3. Deininger, Klaus & Byerlee, Derek, 2011. "The rise of large farms in land abundant countries : do they have a future ?," Policy Research Working Paper Series 5588, The World Bank.
  4. Benin, Samuel & Johnson, Michael E. & Abokyi, Emmanuel & Ahorbo, Gerald & Jimah, Kipo & Nasser, Gamel & Owusu, Victor & Taabazuing, Joe & Tenga, Albert, 2013. "Revisiting agricultural input and farm support subsidies in Africa: The case of Ghana’s mechanization, fertilizer, block farms, and marketing programs:," IFPRI discussion papers, International Food Policy Research Institute (IFPRI) 1300, International Food Policy Research Institute (IFPRI).

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