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Quality labels and rural development : a new economic geography approach

  • Jean-Marc Callois

    ()

    (UMR Métafort, Cemagref, BP 50085, 63172 Aubière cedex)

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    Some rural development strategies are based on the assumption that quality labels may act as levers for inducing economic growth and population migration to rural areas. To investigate the validity of this assumption, we use a new economic geography model. A specific (“labelled”) agricultural good is assumed to be produced by farmers who co-operate in order to set a monopoly price and control the number of producers. We find that there is a trade-off between the number of differentiated farmers and their individual income. Besides, the positive effect of agricultural differentiation on rural industrialization, due to increased demand for industrial goods, is offset by an opposite effect due to urban wages rise. Higher transport costs for the specific good favour rural industrialization but limit the size of the differentiated agricultural sector.

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    Article provided by INRA Department of Economics in its journal Cahiers d'Economie et Sociologie Rurales.

    Volume (Year): 78 (2006)
    Issue (Month): ()
    Pages: 31-51

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    Handle: RePEc:rae:jouces:v:78:y:2006:i::p:31-51
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    1. TABUCHI, Takatoshi & THISSE, Jacques-François, 2001. "Taste heterogeneity, labor mobility and economic geography," CORE Discussion Papers 2001044, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    5. Marette, Stephan & Crespi, John M & Schiavina, Allesandra, 1999. "The Role of Common Labelling in a Context of Asymmetric Information," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 26(2), pages 167-78, June.
    6. Jacques Le & Marie-Françoise Calmette, 1995. "Localisation des activités : un modèle bisectoriel avec coûts de transport," Revue économique, Presses de Sciences-Po, vol. 0(3), pages 901-909.
    7. Kilkenny, Maureen, 1998. "Transport Costs and Rural Development," Staff General Research Papers 1185, Iowa State University, Department of Economics.
    8. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 483-99, June.
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