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The Transition to Modern Agriculture: Contract Farming in Developing Economies

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  • H. Holly Wang
  • Yanbing Wang
  • Michael S. Delgado

Abstract

Recent years have seen considerable interest in the impact of contract farming on farmers in developing countries, motivated out of belief that contract farming spurs transition to modern agriculture. In this article, we provide a thorough review of the empirical literature on contract farming in both developed and developing countries, using China as a special case of the latter. We pay careful attention to broad implications of this research for economic development. We first find empirical studies consistently support the positive contribution of contract farming to production and supply chain efficiency. We also find that most empirical studies identify a positive and significant effect of contract farming on farmer welfare, yet are often unable to reach consistent conclusions as to significant correlates of contract participation.

Suggested Citation

  • H. Holly Wang & Yanbing Wang & Michael S. Delgado, 2014. "The Transition to Modern Agriculture: Contract Farming in Developing Economies," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(5), pages 1257-1271.
    • Handle: RePEc:oup:ajagec:v:96:y:2014:i:5:p:1257-1271.
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    File URL: http://hdl.handle.net/10.1093/ajae/aau036
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