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Quality and Inclusion of Producers in Value Chains: A Theoretical Note

  • Thijs Vandemoortele
  • Scott Rozelle
  • Johan Swinnen
  • Tao Xiang

This paper develops a formal theory of the endogenous process of the introduction of high quality products in developing countries. Initial differences in income and capital and transaction costs are shown to affect the emergence of and the size of the high quality economy. Initial differences in the production structure and the nature of transaction costs "C as well as the possibility of contracting between producers and processors "C are shown to determine which producers are included in the high quality economy, and which not.

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File URL: http://hdl.handle.net/10.1111/j.1467-9361.2011.00649.x
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Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 16 (2012)
Issue (Month): 1 (02)
Pages: 122-136

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Handle: RePEc:bla:rdevec:v:16:y:2012:i:1:p:122-136
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  1. Unnevehr, Laurian J., 2000. "Food safety issues and fresh food product exports from LDCs," Agricultural Economics of Agricultural Economists, International Association of Agricultural Economists, vol. 23(3), September.
  2. Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  3. Maertens, Miet & Colen, Liesbeth & Swinnen, Johan F.M., 2009. "Globalization and Poverty in Senegal: A Worst Case Scenario?," 2009 Conference, August 16-22, 2009, Beijing, China 51668, International Association of Agricultural Economists.
  4. Swinnen, Johan F.M. & Vandemoortele, Thijs, 2008. "The Political Economy of Nutrition and Health Standards in Food Markets," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44364, European Association of Agricultural Economists.
  5. Eswaran, Mukesh & Kotwal, Ashok, 1985. "A Theory of Two-Tier Labor Markets in Agrarian Economies," American Economic Review, American Economic Association, vol. 75(1), pages 162-77, March.
  6. Marcoul, Philippe & Veyssiere, Luc, 2008. "A Financial Contracting Approach to the Role of Supermarkets in Farmers' Credit Access," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6366, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  7. Pollak, Robert A, 1985. "A Transaction Cost Approach to Families and Households," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 581-608, June.
  8. Elizabeth M. M. Q. Farina & Thomas Reardon, 2000. "Agrifood Grades and Standards in the Extended Mercosur: Their Role in the Changing Agrifood System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1170-1176.
  9. Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, June.
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