IDEAS home Printed from https://ideas.repec.org/a/spr/agfoec/v12y2024i1d10.1186_s40100-024-00295-w.html
   My bibliography  Save this article

The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain

Author

Listed:
  • Evans Appiah Kissi

    (University of Kassel)

  • Christian Herzig

    (Justus Liebig University Giessen)

Abstract

This paper identifies several governance factors that enable economic upgrading and the link between economic and social upgrading /downgrading of smallholders and Abusa sharecroppers in Ghana's cocoa value chain (GCVC). The findings are based on qualitative interviews and focus group discussions with various actors in GCVC. Our findings suggest two types of economic upgrading: process and product upgrading, achieved by smallholder producers and Abusa Sharecroppers in GCVC. While process upgrading is enabled by governance factors such as price stabilization and controlling opportunistic behavior, transparency in the sale of certified beans and premium management is key for product upgrading. Regarding the link between economic and social upgrading, we reveal that process upgrading leads to the same outcome of social upgrading and downgrading for smallholders and Abusa sharecroppers due to governance factors such as production and purchasing policies and lack of resources and capabilities. However, product upgrading links to social upgrading and downgrading for smallholders and Abusa sharecroppers respectively owing to governance factors such as controlling resources and bargaining power. We provide insights into key actors and their interests, drivers of change and effects of incentives that play crucial roles in shaping governance factors that influence economic and social upgrading of smallholders and Abusa sharecroppers in GCVC. In our conclusion, we identify how regulations, institutional support and conflicts of interest are key for enabling upgrading of developing countries’ agricultural value chains.

Suggested Citation

  • Evans Appiah Kissi & Christian Herzig, 2024. "The implications of governance factors for economic and social upgrading in Ghana’s cocoa value chain," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 12(1), pages 1-23, December.
    • Handle: RePEc:spr:agfoec:v:12:y:2024:i:1:d:10.1186_s40100-024-00295-w
    DOI: 10.1186/s40100-024-00295-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1186/s40100-024-00295-w
    File Function: Abstract
    Download Restriction: no
    File URL: https://libkey.io/10.1186/s40100-024-00295-w?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
    ---><---

    References listed on IDEAS

    as
    1. Jewellord T. Nem Singh, 2023. "The advance of the state and the renewal of industrial policy in the age of strategic competition," Third World Quarterly, Taylor & Francis Journals, vol. 44(9), pages 1919-1937, September.
    2. Sophie van Huellen & Fuad Mohammed Abubakar, 2021. "Potential for Upgrading in Financialised Agri-food Chains: The Case of Ghanaian Cocoa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(2), pages 227-252, April.
    3. Mohan, Sarah, 2016. "Institutional Change in Value Chains: Evidence from Tea in Nepal," World Development, Elsevier, vol. 78(C), pages 52-65.
    4. Thomas J. Bassett & Moussa Koné & Nathan R. Pavlovic, 2018. "Power Relations and Upgrading in the Cashew Value Chain of Côte d'Ivoire," Development and Change, International Institute of Social Studies, vol. 49(5), pages 1223-1247, September.
    5. Gary Gereffi & Joonkoo Lee, 2016. "Economic and Social Upgrading in Global Value Chains and Industrial Clusters: Why Governance Matters," Journal of Business Ethics, Springer, vol. 133(1), pages 25-38, January.
    6. Anna Carbone, 2017. "Food supply chains: coordination governance and other shaping forces," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-23, December.
    7. Gardner, T.A. & Benzie, M. & Börner, J. & Dawkins, E. & Fick, S. & Garrett, R. & Godar, J. & Grimard, A. & Lake, S. & Larsen, R.K. & Mardas, N. & McDermott, C.L. & Meyfroidt, P. & Osbeck, M. & Persson, 2019. "Transparency and sustainability in global commodity supply chains," World Development, Elsevier, vol. 121(C), pages 163-177.
    8. Evans Appiah Kissi & Christian Herzig, 2020. "Methodologies and Perspectives in Research on Labour Relations in Global Agricultural Production Networks: A Review," Journal of Development Studies, Taylor & Francis Journals, vol. 56(9), pages 1615-1637, July.
    9. Scherrer, Christoph & Radon, Katja (ed.), 2019. "Occupational Safety and Health Challenges in Southern Agriculture," Books, Rainer Hampp Verlag, number 9783957102478.
    10. Stefano Ponte, 2022. "The hidden costs of environmental upgrading in global value chains," Review of International Political Economy, Taylor & Francis Journals, vol. 29(3), pages 818-843, May.
    11. Ismail Doga Karatepe & Christoph Scherrer, 2019. "Collective Action as a Prerequisite for Economic and Social Upgrading in Agricultural Production Networks," Agrarian South: Journal of Political Economy, Centre for Agrarian Research and Education for South, vol. 8(1-2), pages 115-135, April.
    12. Petra Dünhaupt & Hansjörg Herr, 2022. "Global Value Chains—A Panacea for Development?," Springer Books, in: Christina Teipen & Petra Dünhaupt & Hansjörg Herr & Fabian Mehl (ed.), Economic and Social Upgrading in Global Value Chains, chapter 0, pages 55-96, Springer.
    13. Amir Lebdioui, 2022. "The political economy of moving up in global value chains: how Malaysia added value to its natural resources through industrial policy," Review of International Political Economy, Taylor & Francis Journals, vol. 29(3), pages 870-903, May.
    14. Ismail Doga Karatepe & Christoph Scherrer, 2022. "Few Opportunities for Smallholders for Upgrading in Agricultural Value Chains," Springer Books, in: Christina Teipen & Petra Dünhaupt & Hansjörg Herr & Fabian Mehl (ed.), Economic and Social Upgrading in Global Value Chains, chapter 0, pages 335-358, Springer.
    15. Valerie Nelson & David Phillips, 2018. "Sector, Landscape or Rural Transformations? Exploring the Limits and Potential of Agricultural Sustainability Initiatives through a Cocoa Case Study," Business Strategy and the Environment, Wiley Blackwell, vol. 27(2), pages 252-262, February.
    16. Matthew Alford & Nicola Phillips, 2018. "The political economy of state governance in global production networks: change, crisis and contestation in the South African fruit sector," Review of International Political Economy, Taylor & Francis Journals, vol. 25(1), pages 98-121, January.
    17. Anna Carbone, 2017. "Erratum to: Food supply chains: coordination governance and other shaping forces," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 5(1), pages 1-1, December.
    18. Genevieve LeBaron & Ellie Gore, 2020. "Gender and Forced Labour: Understanding the Links in Global Cocoa Supply Chains," Journal of Development Studies, Taylor & Francis Journals, vol. 56(6), pages 1095-1117, June.
    19. Janina Grabs & Stefano Ponte, 2019. "The evolution of power in the global coffee value chain and production network," Journal of Economic Geography, Oxford University Press, vol. 19(4), pages 803-828.
    20. Amanda Berlan, 2013. "Social Sustainability in Agriculture: An Anthropological Perspective on Child Labour in Cocoa Production in Ghana," Journal of Development Studies, Taylor & Francis Journals, vol. 49(8), pages 1088-1100, August.
    21. Barrientos,Stephanie, 2019. "Gender and Work in Global Value Chains," Cambridge Books, Cambridge University Press, number 9781108492317, Enero.
    22. Peter Lund‐Thomsen & Lone Riisgaard & Sukhpal Singh & Shakil Ghori & Neil M. Coe, 2021. "Global Value Chains and Intermediaries in Multi‐stakeholder Initiatives in Pakistan and India," Development and Change, International Institute of Social Studies, vol. 52(3), pages 504-532, May.
    23. Arianna Rossi, 2015. "Better Work: harnessing incentives and influencing policy to strengthen labour standards compliance in global production networks," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 8(3), pages 505-520.
    24. Maile, Felix, 2020. "Cooperation or confrontation? Public and private governance and smallholders' incomes in the cocoa sector in Ghana and in Côte d'Ivoire," ÖFSE-Forum, Austrian Foundation for Development Research (ÖFSE), volume 74, number 74.
    25. Lebdioui, Amir, 2022. "The political economy of moving up in global value chains: how Malaysia added value to its natural resources through industrial policy," LSE Research Online Documents on Economics 107523, London School of Economics and Political Science, LSE Library.
    26. Busquet, Milande & Bosma, Niels & Hummels, Harry, 2021. "A multidimensional perspective on child labor in the value chain: The case of the cocoa value chain in West Africa," World Development, Elsevier, vol. 146(C).
    27. Stephanie BARRIENTOS & Lara BIANCHI & Cindy BERMAN, 2019. "Gender and governance of global value chains: Promoting the rights of women workers," International Labour Review, International Labour Organization, vol. 158(4), pages 729-752, December.
    28. Lorena Lombardozzi, 2021. "Unpacking state-led upgrading: empirical evidence from Uzbek horticulture value chain governance," Review of International Political Economy, Taylor & Francis Journals, vol. 28(4), pages 947-973, July.
    29. Thorpe, Jodie, 2018. "Procedural Justice in Value Chains Through Public–private Partnerships," World Development, Elsevier, vol. 103(C), pages 162-175.
    30. Amankwah-Amoah, Joseph & Debrah, Yaw & Nuertey, Dorcas, 2018. "Institutional Legitimacy, Cross-Border Trade and Institutional Voids: Insights from the Cocoa Industry in Ghana," MPRA Paper 84393, University Library of Munich, Germany.
    31. Catherine Kilelu & Laurens Klerkx & Amos Omore & Isabelle Baltenweck & Cees Leeuwis & Julius Githinji, 2017. "Value Chain Upgrading and the Inclusion of Smallholders in Markets: Reflections on Contributions of Multi-Stakeholder Processes in Dairy Development in Tanzania," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(5), pages 1102-1121, November.
    32. Rossi, Arianna, 2013. "Does Economic Upgrading Lead to Social Upgrading in Global Production Networks? Evidence from Morocco," World Development, Elsevier, vol. 46(C), pages 223-233.
    33. Christina Teipen & Fabian Mehl, 2022. "Social Upgrading in Global Value Chains—The Role of Labor and Industrial Relations," Springer Books, in: Christina Teipen & Petra Dünhaupt & Hansjörg Herr & Fabian Mehl (ed.), Economic and Social Upgrading in Global Value Chains, chapter 0, pages 97-120, Springer.
    Full references (including those not matched with items on IDEAS)

    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. Johanna Gammelgaard & Stine Haakonsson & Sine Nørholm Just, 2021. "Linking Malawi’s agricultural sector to global value chains: The case for community governance," Journal of International Business Policy, Palgrave Macmillan, vol. 4(4), pages 523-540, December.
    2. Bataka, Hodabalo, 2024. "Global value chains participation and gender inequalities in Sub-Saharan Africa: Importance of women education," International Economics, Elsevier, vol. 178(C).
    3. Margareet Visser & Matthew Alford, 2024. "Governance and Power Across Intersecting Value Chains: The Case of South African Apples," Journal of Business Ethics, Springer, vol. 189(1), pages 69-86, January.
    4. Evans Appiah Kissi & Christian Herzig, 2024. "Labour relations and working conditions of workers on smallholder cocoa farms in Ghana," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 41(1), pages 109-120, March.
    5. Kissi, Evans & Herzig, Christian, 2021. "Governance of Decent Work in Ghana’s Cocoa Industry: Implications for Economic and Social Upgrading," 61st Annual Conference, Berlin, Germany, September 22-24, 2021 317070, German Association of Agricultural Economists (GEWISOLA).
    6. Marslev, Kristoffer & Staritz, Cornelia & Raj‐Reichert, Gale, 2022. "Rethinking Social Upgrading in Global Value Chains: Worker Power, State‒Labour Relations and Intersectionality," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 53(4), pages 827-859.
    7. Xinyu Yang & Weidong Liu, 2022. "Agricultural Production Networks and Upgrading from a Global–Local Perspective: A Review," Land, MDPI, vol. 11(10), pages 1-14, October.
    8. Li, Shengwen & Goerzen, Anthony, 2024. "Improving global value chain governance: Empowering women through third-party interventions within institutionally fragile contexts," Journal of World Business, Elsevier, vol. 59(3).
    9. Giovanni Pasquali & Shane Godfrey, 2022. "Governance of Eswatini Apparel Regional Value Chains and the Implications of Covid-19," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(1), pages 473-502, February.
    10. Nikulin, Dagmara & Wolszczak-Derlacz, Joanna, 2022. "GVC involvement and the gender wage gap: Micro-evidence on European countries," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 268-282.
    11. Shyamain Wickramasingha, 2023. "Geographies of dissociation: informality, ethical codes and fragmented labour regimes in the Sri Lankan apparel industry," Journal of Economic Geography, Oxford University Press, vol. 23(6), pages 1191-1211.
    12. Elsje Fourie & Bilisuma Dito & Konjit Gudeta & Karen Schelleman-Offermans & Valentina Mazzucato & Kai Jonas, 2024. "The Bitter and the Sweet: Managerial Perceptions of the Well-Being of Ethiopian Female Apparel and Horticultural Workers," Progress in Development Studies, , vol. 24(2), pages 185-201, April.
    13. Valentina De Marchi & Matthew Alford, 2022. "State policies and upgrading in global value chains: A systematic literature review," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 88-111, March.
    14. Stefano Ponte & Valentina De Marchi & Marco Bettiol & Eleonora di Maria, 2023. "The horizontal governance of environmental upgrading: Lessons from the Prosecco and Valpolicella wine value chains in Italy," Environment and Planning A, , vol. 55(8), pages 1884-1905, November.
    15. Dallas, Mark P. & Horner, Rory & Li, Lantian, 2021. "The mutual constraints of states and global value chains during COVID-19: The case of personal protective equipment," World Development, Elsevier, vol. 139(C).
    16. Tennhardt, Lina & Lazzarini, Gianna & Weisshaidinger, Rainer & Schader, Christian, 2022. "Do environmentally-friendly cocoa farms yield social and economic co-benefits?," Ecological Economics, Elsevier, vol. 197(C).
    17. Laura T. Raynolds, 2021. "Gender equity, labor rights, and women’s empowerment: lessons from Fairtrade certification in Ecuador flower plantations," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 38(3), pages 657-675, September.
    18. Ingunn Y. Gudbrandsdottir & Nína M. Saviolidis & Gudrun Olafsdottir & Gudmundur V. Oddsson & Hlynur Stefansson & Sigurdur G. Bogason, 2021. "Transition Pathways for the Farmed Salmon Value Chain: Industry Perspectives and Sustainability Implications," Sustainability, MDPI, vol. 13(21), pages 1-23, November.
    19. Kristoffer Marslev & Cornelia Staritz & Gale Raj‐Reichert, 2022. "Rethinking Social Upgrading in Global Value Chains: Worker Power, State‒Labour Relations and Intersectionality," Development and Change, International Institute of Social Studies, vol. 53(4), pages 827-859, July.
    20. Uma RANI & Damian GRIMSHAW, 2019. "Introduction: What does the future promise for work, employment and society?," International Labour Review, International Labour Organization, vol. 158(4), pages 577-592, December.

    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:spr:agfoec:v:12:y:2024:i:1:d:10.1186_s40100-024-00295-w. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.