Contracts, Hold-Up, and Exports: Textiles and Opium in Colonial India
AbstractTrade and export, it is argued, spur economic growth. This paper studies the microeconomics of exporting. We build a heuristic model of transactions between exporters and producers and relate it to East India Company operations in colonial Bengal. Our model and the historical record stress two difficulties: the exporter and its agents might not uphold pricing agreements, and producers might not honor sales contracts. The model shows when procurement succeeds or fails, highlighting the tension between these two hold-up problems. We analyze several cases including the East India Company's textile venture, the famous Opium Monopoly, and present-day contract farming.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Williams College in its series Department of Economics Working Papers with number 2006-05.
Length: 37 pages
Date of creation: Dec 2006
Date of revision:
Publication status: published in American Economic Review, June 2008, v. 98, iss. 3, pp. 967-89.
Other versions of this item:
- Rachel Kranton & Anand V. Swamy, 2008. "Contracts, Hold-Up, and Exports: Textiles and Opium in Colonial India," American Economic Review, American Economic Association, vol. 98(3), pages 967-89, June.
- Anand V. Swamy & Rachel E. Kranton, 2006. "Contracts, Hold-Up, and Exports: Textiles and Opium in Colonial India," Center for Development Economics 2006-01, Department of Economics, Williams College.
- D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
- Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness
- N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East
- N - Economic History
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Balat, Jorge & Brambilla, Irene & Porto, Guido, 2009.
"Realizing the gains from trade: Export crops, marketing costs, and poverty,"
Journal of International Economics,
Elsevier, vol. 78(1), pages 21-31, June.
- Jorge Balat & Irene Brambilla & Guido Porto, 2007. "Realizing the Gains From Trade: Export Crops, Marketing Costs, and Poverty," NBER Working Papers 13395, National Bureau of Economic Research, Inc.
- Balat, Jorge & Brambilla, Irene & Porto, Guido, 2008. "Realizing the gains from trade : export crops, marketing costs, and poverty," Policy Research Working Paper Series 4488, The World Bank.
- Deb, Rahul & Suri, Tavneet, 2013. "Endogenous emergence of credit markets: Contracting in response to a new technology in Ghana," Journal of Development Economics, Elsevier, vol. 101(C), pages 268-283.
- Delpeuch, Claire & Vandeplas, Anneleen & Swinnen, Johan F.M., 2010.
"Revisiting the “cotton problem”: A comparative analysis of cotton reforms in Sub-Saharan Africa,"
84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland
91806, Agricultural Economics Society.
- Delpeuch, Claire & Vandeplas, Anneleen, 2013. "Revisiting the “Cotton Problem”—A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," World Development, Elsevier, vol. 42(C), pages 209-221.
- Claire Delpeuch & Anneleen Vandeplas & Johan F.M.Swinnen, 2011. "Revisiting the "cotton problem": A comparative analysis of cotton reforms in sub-Saharan Africa," LICOS Discussion Papers 29011, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Delpeuch, Claire & Vandeplas, Anneleen & Swinnen, Johan F.M., 2010. "Revisiting the “Cotton Problem”: A comparative analysis of cotton reforms in Sub-Saharan Africa," 84th Annual Conference, March 29-31, 2010, Edinburgh, Scotland 62042, Agricultural Economics Society.
- Delpeuch, Claire & Vandeplas, Anneleen, 2011. "Revisiting the "Cotton Problem" - A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114446, European Association of Agricultural Economists.
- Delpeuch, Claire & Vandeplas, Anneleen & Swinnen, Johan F.M., 2010. "Revisiting the "Cotton Problem:" A Comparative Analysis of Cotton Reforms in Sub-Saharan Africa," 2010 AAAE Third Conference/AEASA 48th Conference, September 19-23, 2010, Cape Town, South Africa 96176, African Association of Agricultural Economists (AAAE) & Agricultural Economics Association of South Africa (AEASA).
- Macchiavello, Rocco, 2010. "Development Uncorked: Reputation Acquisition in the New Market for Chilean Wines in the UK," CEPR Discussion Papers 7698, C.E.P.R. Discussion Papers.
- Depetris Chauvin, Nicolas & Porto, Guido G., 2011. "Market Competition in Export Cash Crops and Farm Income," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126159, International Association of Agricultural Economists.
- Rocco Macchiavello, 2009.
"Vertical Integration and Investor Protection in Developing Countries,"
2009.86, Fondazione Eni Enrico Mattei.
- Macchiavello, Rocco, 2010. "Vertical integration and investor protection in developing countries," Journal of Development Economics, Elsevier, vol. 93(2), pages 162-172, November.
- Swinnen, Johan F.M. & Vandeplas, Anneleen, 2009.
"Rich consumers and poor producers: Quality and rent distribution in global value chains,"
IFPRI discussion papers
932, International Food Policy Research Institute (IFPRI).
- Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.
- Rocco Macchiavello, 2007. "Vertical Integration, Missing Middle and Investor Protection in Developing Countries," Economics Series Working Papers 373, University of Oxford, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stephen Sheppard).
If references are entirely missing, you can add them using this form.