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The Impact on Farmers of Privatizing Parastatal Agricultural Monopsonies

Author

Listed:
  • Makdissi Paul

    (Université de Sherbrooke)

  • Wodon Quentin

    (World Bank)

Abstract

International Financial Institutions have advocated the privatization of integrated agricultural monopsonies in developing countries with the hope that competition between private firms under a contract farming system would reduce inefficiencies in production and enable farmers to obtain a higher share of world commodity prices. Using a very simple theoretical model, this paper shows however that the impact of privatization and contract farming may not be positive for all farmers.

Suggested Citation

  • Makdissi Paul & Wodon Quentin, 2005. "The Impact on Farmers of Privatizing Parastatal Agricultural Monopsonies," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(2), pages 1-11, September.
    • Handle: RePEc:bpj:bjafio:v:3:y:2005:i:2:n:7
    DOI: 10.2202/1542-0485.1074
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    References listed on IDEAS

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    1. Nicholas Economides & Steven S. Wildman, 1995. "Monopolistic Competition with Two-Part Tariffs," Working Papers 95-10, New York University, Leonard N. Stern School of Business, Department of Economics.
    2. Akiyama, Takamasa & Baffes, John & Larson, Donald F. & Varangis, Panos, 2003. "Commodity market reform in Africa: some recent experience," Economic Systems, Elsevier, vol. 27(1), pages 83-115, March.
    3. Kenneth Fjell & John S. Heywood, 2002. "Public Stackelberg Leadership in a Mixed Oligopoly with Foreign Firms," Australian Economic Papers, Wiley Blackwell, vol. 41(3), pages 267-281, September.
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    Cited by:

    1. Paul Makdissi & Quentin Wodon, 2008. "Can Risk Averse Competitive Input Providers Serve Farmers Efficiently in Developing Countries," Working Papers 0808E, University of Ottawa, Department of Economics.

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