IDEAS home Printed from https://ideas.repec.org/a/vrs/seejeb/v18y2023i2p173-185n10.html

Linking Farmers’ Bargaining Power in Trade to their Plans for Future Economic Activities

Author

Listed:
  • Lushi Isuf

    (PhD, Faculty of Life and Environmental Sciences -University of Prizren, Republic of Kosovo)

  • Çera Gentjan

    (PhD, Agriculture University of Tirana, Albania)

  • Murrja Arif

    (PhD, Agriculture University of Tirana, Albania)

  • Ujkani Sead

    (PhD, Faculty of Economics, University of Prishtina Str. “Agim Ramadani”, n.n. 10 000 Prishtinë, Republic of Kosovo)

Abstract

This paper aims to examine the relationship between the bargaining power of farmers in trade and their plans for future economic activity. While there is existing evidence shedding light on the factors influencing trading power and its consequences, there remains a compelling exigency for scientific substantiation clarifying the aforementioned nexus. A questionnaire was designed and utilized to collect primary data from farmers in Albania (with a sample size of 640). Factor analysis, reliability test and non-parametric statistical methods were used. Evidence was found in support of the aforesaid relationships. Hence, farmers who have plans for investments reflect a higher bargaining power in trading, as opposed to those without such plans. Moreover, interest in increasing farm activity is significantly associated with improved bargaining power in trade. This study enriches the literature, especially in the agribusiness field, by offering additional insights from a transition and developing country.

Suggested Citation

  • Lushi Isuf & Çera Gentjan & Murrja Arif & Ujkani Sead, 2023. "Linking Farmers’ Bargaining Power in Trade to their Plans for Future Economic Activities," South East European Journal of Economics and Business, Paradigm, vol. 18(2), pages 173-185, December.
    • Handle: RePEc:vrs:seejeb:v:18:y:2023:i:2:p:173-185:n:10
    DOI: 10.2478/jeb-2023-0026
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/jeb-2023-0026
    Download Restriction: no
    File URL: https://libkey.io/10.2478/jeb-2023-0026?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. Hanna J. Ihli & Syster C. Maart-Noelck & Oliver Musshoff, 2014. "Does timing matter? A real options experiment to farmers' investment and disinvestment behaviours," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 430-452, July.
    2. Tatiana Evteeva & Patrik Rovny & Marek Petrilak, 2019. "Farm As A Form Of Small Agricultural Business In Russia: Advantages And Disadvantages," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 7(2), pages 53-62, December.
    3. Xuesong Sun & Zaisheng Zhang & Yiye Zhang, 2018. "Factors Influencing Farmer’s Decision-Making Behavior on Rural Construction Land Transformation," Sustainability, MDPI, vol. 10(11), pages 1-17, November.
    4. Agata Malak-Rawlikowska & Dominika Milczarek-Andrzejewska & Jan Fałkowski, 2019. "Farmers’ Bargaining Power and Input Prices: What Can We Learn from Self-Reported Assessments? 1," Social Sciences, MDPI, vol. 8(2), pages 1-13, February.
    5. Syster C. Maart-Noelck & Oliver Musshoff, 2013. "Investing Today or Tomorrow? An Experimental Approach to Farmers’ Decision Behaviour," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 295-318, June.
    6. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D'Haese, Marijke, 2018. "Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?," World Development, Elsevier, vol. 104(C), pages 46-64.
    7. Alex Winter-Nelson & Koffi Amegbeto, 1998. "Option Values to Conservation and Agricultural Price Policy: Application to Terrace Construction in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(2), pages 409-418.
    8. repec:wbk:wboper:31804 is not listed on IDEAS
    9. Giorgi Zarnadze & Ines Dika & Gentjan Çera & Humberto Nuno Rito Ribeiro, 2022. "Personality Traits and Business Environment for Entrepreneurial Motivation," Administrative Sciences, MDPI, vol. 12(4), pages 1-18, November.
    10. Orjon Xhoxhi & Andi Stefanllari & Engjell Skreli & Drini Imami, 2020. "How intermediaries' power affects contract farming decisions: evidence from the medicinal and aromatic plant sector in Albania," Journal of Agribusiness in Developing and Emerging Economies, Emerald Group Publishing Limited, vol. 10(5), pages 529-544, August.
    11. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    12. Gentjan Çera & Edmond Çera & Humberto Nuno Rito Ribeiro & Sadik Maloku, 2021. "The role of trust in government and institutional environment in future business climate," International Journal of Entrepreneurial Venturing, Inderscience Enterprises Ltd, vol. 13(5), pages 425-442.
    13. Gentjan ÇERA & Maksim MEÇO & Edmond ÇERA & Sadik MALOKU, 2019. "The Effect Of Institutional Constraints And Business Network On Trust In Government: An Institutional Perspective," REVISTA ADMINISTRATIE SI MANAGEMENT PUBLIC, Faculty of Administration and Public Management, Academy of Economic Studies, Bucharest, Romania, vol. 2019(33), pages 6-19, December.
    14. Skreli, Engjell & Imami, Drini & Jámbor, Attila & Zvyagintsev, Dmitry & Çera, Gentjan, 2015. "The impact of government subsidies on the olive and vineyard sectors of Albanian agriculture," Studies in Agricultural Economics, Research Institute for Agricultural Economics, vol. 117(3), pages 1-7, December.
    15. Richard J. Sexton & Tian Xia, 2018. "Increasing Concentration in the Agricultural Supply Chain: Implications for Market Power and Sector Performance," Annual Review of Resource Economics, Annual Reviews, vol. 10(1), pages 229-251, October.
    16. Imami, Drini & Valentinov, Vladislav & Skreli, Engjell, 2021. "Food safety and value chain coordination in the context of a transition economy: The role of agricultural cooperatives," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 15(1), pages 21-34.
    17. Powers, Thomas L. & Reagan, William R., 2007. "Factors influencing successful buyer-seller relationships," Journal of Business Research, Elsevier, vol. 60(12), pages 1234-1242, December.
    18. Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
    19. He, Juan & Zheng, Xiaoyong & Rejesus, Roderick M. & Yorobe Jr., Jose M., . "Moral hazard and adverse selection effects of cost-of-production crop insurance: evidence from the Philippines," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(01).
    20. Fischer, Sabine & Wollni, Meike, 2018. "The role of farmers’ trust, risk and time preferences for contract choices: Experimental evidence from the Ghanaian pineapple sector," Food Policy, Elsevier, vol. 81(C), pages 67-81.
    21. Ruth Vargas Hill, 2010. "Investment and Abandonment Behavior of Rural Households: An Empirical Investigation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1065-1086.
    22. Liguo Zhang & Xuerong Li, 2016. "The Impact of Traditional Culture on Farmers’ Moral Hazard Behavior in Crop Production: Evidence from China," Sustainability, MDPI, vol. 8(7), pages 1-15, July.
    23. Juan He & Xiaoyong Zheng & Roderick M. Rejesus & Jose M. Yorobe, 2019. "Moral hazard and adverse selection effects of cost‐of‐production crop insurance: evidence from the Philippines," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(1), pages 166-197, January.
    24. Phillip Warsaw & Steven Archambault & Arden He & Stacy Miller, 2021. "The Economic, Social, and Environmental Impacts of Farmers Markets: Recent Evidence from the US," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    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. Ihli, Hanna Julia & Gassner, Anja & Musshoff, Oliver, 2018. "Experimental insights on the investment behavior of small-scale coffee farmers in central Uganda under risk and uncertainty," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 75(C), pages 31-44.
    2. 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.
    3. Hanna J. Ihli & Syster C. Maart-Noelck & Oliver Musshoff, 2014. "Does timing matter? A real options experiment to farmers' investment and disinvestment behaviours," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), pages 430-452, July.
    4. Celina Schelle & Benno Pokorny, 2021. "How Inclusive Is Inclusive? A Critical Analysis of an Agribusiness Initiative in Kenya," Sustainability, MDPI, vol. 13(19), pages 1-17, October.
    5. Ihli, Hanna Julia & Musshoff, Oliver, 2013. "Understanding the Investment Behavior of Ugandan Smallholder Farmers: An Experimental Analysis," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150331, Agricultural and Applied Economics Association.
    6. Ihli, Hanna Julia & Musshoff, Oliver, 2013. "Investment Behavior of Ugandan Smallholder Farmers: An Experimental Analysis," GlobalFood Discussion Papers 154775, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    7. Laura Enthoven & Goedele Van den Broeck, 2021. "Promoting Food Safety in Local Value Chains: The Case of Vegetables in Vietnam," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    8. Viet Hoang & Vinh Nguyen, 2023. "Determinants of small farmers' participation in contract farming in developing countries: A study in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 39(3), pages 836-853, July.
    9. Xianlei Ma & Justus Wesseler & Nico Heerink & Futian Qu, 2013. "Land Tenure Reforms and Land Conservation Investments in China ¨C What Does Real Option Value Theory Tell Us?," Review of Economics & Finance, Better Advances Press, Canada, vol. 3, pages 19-33, August.
    10. Chalmers Mulwa & TS Jayne & Milu Muyanga & Martine Visser, "undated". "Emergent large traders in smallholder grain markets and their role in enhancing adoption of sustainable agricultural intensification practices in Kenya," ERSA Working Paper Series v::y:2020:i::id:120, Economic Research Southern Africa.
    11. Saule Burkitbayeva & Emma Janssen & Johan Swinnen, 2020. "Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(2), pages 433-479, September.
    12. Mai Chiem Tuyen & Prapinwadee Sirisupluxana & Isriya Bunyasiri & Pham Xuan Hung, 2022. "Stakeholders’ Preferences towards Contract Attributes: Evidence from Rice Production in Vietnam," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    13. Brendel Lewnsky Chuma & Cecil Togarepi & Benisiu Thomas, 2024. "Participation of smallholder farmers in cattle contract farming: a systematic review," SN Business & Economics, Springer, vol. 4(11), pages 1-23, November.
    14. Saule Burkitbayeva & Emma Janssen & Jo Swinnen, 2019. "Technology Adoption and Value Chains in Developing Countries: Panel Evidence from Dairy in Punjab," Working Papers of LICOS - Centre for Institutions and Economic Performance 634342, KU Leuven, Faculty of Economics and Business (FEB), LICOS - Centre for Institutions and Economic Performance.
    15. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    16. Swinnen, Johan & Kuijpers, Rob, 2019. "Value chain innovations for technology transfer in developing and emerging economies: Conceptual issues, typology, and policy implications," Food Policy, Elsevier, vol. 83(C), pages 298-309.
    17. George Malindretos & Eleni Sardianou & Maria Briana, 2023. "Farmers’ Perception on Contract Farming in the Post-COVID Era: Empirical Study in Greece," Sustainability, MDPI, vol. 15(20), pages 1-14, October.
    18. Odountan Ambaliou Olounlade & Gu-Cheng Li & Sènakpon E. Haroll Kokoye & François Vihôdé Dossouhoui & Kuassi Auxence Aristide Akpa & Dessalegn Anshiso & Gauthier Biaou, 2020. "Impact of Participation in Contract Farming on Smallholder Farmers’ Income and Food Security in Rural Benin: PSM and LATE Parameter Combined," Sustainability, MDPI, vol. 12(3), pages 1-19, January.
    19. Ranjeet Rajput & Sri Vanamalla Venkataraman, 2022. "A violent market price contract for agribusiness supply chain," Annals of Operations Research, Springer, vol. 315(2), pages 1971-1996, August.
    20. Ihli, Hanna Julia & Chiputwa, Brian & Musshoff, Oliver, 2016. "Do Changing Probabilities or Payoffs in Lottery-Choice Experiments Affect Risk Preference Outcomes? Evidence from Rural Uganda," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(2), May.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

    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:vrs:seejeb:v:18:y:2023:i:2:p:173-185:n:10. 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: Peter Golla (email available below). General contact details of provider: https://reference-global.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.