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Can risk averse competitive input providers serve farmers efficiently in developing countries ?

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Author Info
Makdissi, Paul
Wodon, Quentin

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Abstract

Under price ceilings and quality floors for agricultural inputs in cash crop sectors in developing countries where credit markets are weak, imperfect information on the ability of farmers to pay for their inputs at the end of the cropping season may lead the decentralized production of those inputs by risk averse private input providers to be inefficient. A coordinating agency and/or subsidies for new farmers could help to produce and distribute more agricultural inputs, thereby increasing the profits for input providers while also enabling more farmers to produce the crops that are key to their livelihood.

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Publisher Info
Paper provided by The World Bank in its series Policy Research Working Paper Series with number 4922.

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Date of creation: 01 Apr 2009
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Handle: RePEc:wbk:wbrwps:4922

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Related research
Keywords: Rural Poverty Reduction; Economic Theory&Research; Crops&Crop Management Systems; Access to Finance; Rural Development Knowledge&Information Systems;

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  1. Paul Makdissi & Quentin Wodon, 2005. "The Impact on Farmers of Privatizing Parastatal Agricultural Monopsonies," Journal of Agricultural & Food Industrial Organization, Berkeley Electronic Press, vol. 3(2). [Downloadable!]
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This page was last updated on 2009-11-26.


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