IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v64y2014icp815-827.html
   My bibliography  Save this article

The Determinants of Intermediaries’ Power over Farmers’ Margin-Related Activities: Evidence from Adana, Turkey

Author

Listed:
  • Xhoxhi, Orjon
  • Pedersen, Søren Marcus
  • Lind, Kim Martin
  • Yazar, Attila

Abstract

This paper investigates the determinants of intermediaries’ power over farmers’ margin-related activities in Adana, Turkey. In doing so, a holistic model of intermediaries’ power over farmers’ margin-related activities is proposed. The objective of this model is to contribute to a better understanding of the power relationships between farmers and intermediaries. It is argued in the paper that a balance of power needs to be established between farmers and intermediaries because it leads to the rise of more efficient trading relationships, with reduced transaction costs and improved chain coordination. Multiple linear regression is employed to analyze the hypothesized relationships.

Suggested Citation

  • Xhoxhi, Orjon & Pedersen, Søren Marcus & Lind, Kim Martin & Yazar, Attila, 2014. "The Determinants of Intermediaries’ Power over Farmers’ Margin-Related Activities: Evidence from Adana, Turkey," World Development, Elsevier, vol. 64(C), pages 815-827.
    • Handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:815-827
    DOI: 10.1016/j.worlddev.2014.07.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X14002149
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2014.07.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11846.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-261, October.
    3. Schipmann, Christin & Qaim, Matin, 2011. "Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand," Food Policy, Elsevier, vol. 36(5), pages 667-677.
    4. Pokhrel, Deepak M. & Thapa, Gopal B., 2007. "Are marketing intermediaries exploiting mountain farmers in Nepal? A study based on market price, marketing margin and income distribution analyses," Agricultural Systems, Elsevier, vol. 94(2), pages 151-164, May.
    5. 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, vol. 36(2), pages 272-279, April.
    6. Benjamin Klein, 1997. "Transaction Cost Determinants of "Unfair" Contractual Arrangements," Chapters, in: Svetozar Pejovich (ed.), The Economic Foundations of Property Rights, chapter 12, pages 164-170, Edward Elgar Publishing.
    7. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    8. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11845.
    9. World Bank, 2012. "Greenhouse Gas Analysis at the World Bank [Asociacion entre el Caribe y Centro América para Aseguramiento Contra Riesgo Catastrófico : agrupación de riesgos para protegerse contra catástrofes gener," World Bank Publications - Reports 18365, The World Bank Group.
    10. Bignebat, Celine & Koc, A. Ali & Lemeilleur, Sylvaine, "undated". "Linking small producers to supermarkets? The role of intermediaries on the fresh fruit and vegetable market in Turkey," 111th Seminar, June 26-27, 2009, Canterbury, UK 52856, European Association of Agricultural Economists.
    11. Aghion, Philippe & Dewatripont, Mathias & Rey, Patrick, 1994. "Renegotiation Design with Unverifiable Information," Econometrica, Econometric Society, vol. 62(2), pages 257-282, March.
    12. Céline Bignebat & Ahmet Ali Koç & Sylvaine Lemeilleur, 2009. "Small producers, supermarkets, and the role of intermediaries in Turkey's fresh fruit and vegetable market," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 807-816, November.
    13. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
    14. Keith G. Provan & Jule B. Gassenheimer, 1994. "Supplier Commitment In Relational Contract Exchanges With Buyers: A Study Of Interorganizational Dependence And Exercised Power," Journal of Management Studies, Wiley Blackwell, vol. 31(1), pages 55-68, January.
    15. repec:bla:devpol:v:21:y:2003:i::p:333-355 is not listed on IDEAS
    16. Key, Nigel & Runsten, David, 1999. "Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agroprocessing Firms and the Scale of Outgrower Production," World Development, Elsevier, vol. 27(2), pages 381-401, February.
    17. World Bank, 2012. "The World Bank Annual Report 2012," World Bank Publications - Books, The World Bank Group, number 11844.
    18. De Fraja, Gianni, 1999. "After You Sir. Hold-Up, Direct Externalities, and Sequential Investment," Games and Economic Behavior, Elsevier, vol. 26(1), pages 22-39, January.
    19. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-540, September.
    20. Lantican, Josefina M., 1997. "Market Prospects for Upland Crops in the Philippines," Working Papers 32708, United Nations Centre for Alleviation of Poverty Through Secondary Crops' Development in Asia and the Pacific (CAPSA).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xhoxhi, Orjon & Pedersen, Søren Marcus & Lind, Kim Martin, 2018. "How does the intermediaries’ power affect farmers-intermediaries’ trading relationship performance?," World Development Perspectives, Elsevier, vol. 10, pages 44-50.
    2. Magali Aubert & Jean Marie Codron & Sylvain Rousset & Murat Yercan, 2017. "Which factors lead tomato growers to implement integrated pest management? Evidence from Turkey," Post-Print hal-02735805, HAL.
    3. Katharina Biely & Dries Maes & Steven Van Passel, 2018. "Market Power Extended: From Foucault to Meadows," Sustainability, MDPI, vol. 10(8), pages 1-23, August.
    4. Longjiao Wen & Zhenzhen Liu & Zhifeng Gao & Saeid Khanjari, 2022. "Evolutionary Path and Mechanism of Village Revitalization: A Case Study of Yuejin Village, Jiangsu, China," Sustainability, MDPI, vol. 14(13), pages 1-20, July.
    5. Akgunduz, Yusuf Emre & Ozcan-Tok, Elif, 2024. "Impact of municipality-run discount stalls on price formation across the food supply chain," Food Policy, Elsevier, vol. 125(C).
    6. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2016. "The effect of improved storage innovations on food security and welfare in Ethiopia," MERIT Working Papers 2016-063, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Xhoxhi, Orjon & Imami, Drini & Hanf, Jon & Gjokaj, Ekrem, . "Too much power or no power: when does intermediary's power result into better wine and happier farmers?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(5).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Herforth, Nico & Theuvsen, Ludwig & Vásquez, Wilson & Wollni, Meike, 2015. "Understanding participation in modern supply chains under a social network perspective – evidence from blackberry farmers in the Ecuadorian Andes," GlobalFood Discussion Papers 197709, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. Göller, Daniel & Stremitzer, Alexander, 2014. "Breach remedies inducing hybrid investments," International Review of Law and Economics, Elsevier, vol. 37(C), pages 26-38.
    3. Mukherjee, Swayambhu & Kar, Saibal, 2020. "Leveraging Non-Farm Income: Micro-evidence of Occupational Choice for Rural Households in India," MPRA Paper 109940, University Library of Munich, Germany.
    4. Legovini, Arianna & Di Maro, Vincenzo & Piza, Caio, 2015. "Impact evaluation helps deliver development projects," Policy Research Working Paper Series 7157, The World Bank.
    5. Ochia, Stevenson Enemuwa (Doctorial Student) & Bobmanuel, Karibi Benson PhD & Umunnah, Blessing Onyinyechukwu PhD, 2022. "Port Harcourt Residents’ Perception of Energyplatform Programme on Nigeria Info 92.3FM," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(12), pages 794-802, December.
    6. Valentinov, Vladislav & Imami, Drini & Xhoxhi, Orjon, 2024. "Contract farming in transitional economies: A stakeholder theory perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 27(4), pages 633-649.
    7. Alexander Stremitzer, 2012. "Standard Breach Remedies, Quality Thresholds, and Cooperative Investments," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 28(2), pages 337-359.
    8. Robert Evans, 2008. "Simple Efficient Contracts in Complex Environments," Econometrica, Econometric Society, vol. 76(3), pages 459-491, May.
    9. Smirnov, Vladimir & Wait, Andrew, 2004. "Timing of investments, holdup and total welfare," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 413-425, March.
    10. Rachel Wolfgramm & Sian Flynn-Coleman & Denise Conroy, 2015. "Dynamic Interactions of Agency in Leadership (DIAL): An Integrative Framework for Analysing Agency in Sustainability Leadership," Journal of Business Ethics, Springer, vol. 126(4), pages 649-662, February.
    11. Kent Matthews, 2014. "Cost Inefficiency in the Pakistan Banking Sector 2002-2009," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 10, pages 1-20.
    12. Samuel Egyakwa Ankomah & Adam Fusheini & Christy Ballard & Emmanuel Kumah & Gagan Gurung & Sarah Derrett, 2021. "Patient–public engagement interventions for health system improvement in Sub‐Saharan Africa: A systematic scoping review protocol," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(2), pages 273-281, March.
    13. Josef Brechler & Vaclav Hausenblas & Zlatuse Komarkova & Miroslav Plasil, 2014. "Similarity and Clustering of Banks: Application to the Credit Exposures of the Czech Banking Sector," Research and Policy Notes 2014/04, Czech National Bank, Research and Statistics Department.
    14. Stephen P. D’Alessandro & Jorge Caballero & John Lichte & Simon Simpkin, 2015. "Kenya," World Bank Publications - Reports 23350, The World Bank Group.
    15. Ayaz Hussain & Umar Draz & Tariq Ali & Saman Tariq & Muhammad Irfan & Adam Glowacz & Jose Alfonso Antonino Daviu & Sana Yasin & Saifur Rahman, 2020. "Waste Management and Prediction of Air Pollutants Using IoT and Machine Learning Approach," Energies, MDPI, vol. 13(15), pages 1-22, August.
    16. Da Mata, Daniel & Resende, Guilherme, 2020. "Changing the climate for banking: The economic effects of credit in a climate-vulnerable area," Journal of Development Economics, Elsevier, vol. 146(C).
    17. Francine Lafontaine & Margaret Slade, 2007. "Vertical Integration and Firm Boundaries: The Evidence," Journal of Economic Literature, American Economic Association, vol. 45(3), pages 629-685, September.
    18. Rahab Wanjiru Waihenya & Prof. Peter Kithae, 2022. "Mobile Banking Services and Performance of Informal Businesses in Nairobi, Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 50-58, October.
    19. Meilin Ma & Richard J. Sexton, 2021. "Modern agricultural value chains and the future of smallholder farming systems," Agricultural Economics, International Association of Agricultural Economists, vol. 52(4), pages 591-606, July.
    20. Andries, Kathleen & Gallemore, John & Jacob, Martin, 2017. "The effect of corporate taxation on bank transparency: Evidence from loan loss provisions," Journal of Accounting and Economics, Elsevier, vol. 63(2), pages 307-328.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:64:y:2014:i:c:p:815-827. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.