IDEAS home Printed from
   My bibliography  Save this paper

Trade and poverty in Paraguay: the case of an agribusiness value chain


  • Masi, Fernando
  • Setrini, Gustavo
  • Arce, Lucas
  • González, Cynthia
  • Servín, Belén


We propose a methodology involving surveys carried out among a group of small producers linked to a cooperative (Capiibary) to analyse the link between trade and poverty via the inclusion of small family farmers in a value chain headed by a large exporter in Paraguay, Frutika, to which they sell their output of passion fruit (mburucuyá) and other fruits. The cooperative and the firm are located in one of Paraguay's poorest regions, with a poverty coefficient of 41.8% and an even higher incidence of 46.3% in the rural part of the region. The main focus is on evaluating the impact of the linkage between small farmers and Frutika, the control being a group of family farmers in the cooperative who have no ties to it. The findings as regards the factors accounting for the different levels of poverty and the income effects of participating in the value chain indicate that belonging to the fruit farming chain has a very large influence in explaining why both the poverty gap and the severity of poverty are lower among producers who are in the chain than among those who are not. Poverty falls by much more in the group of producers within the fruit farming chain than among those outside it. Although belonging to the chain improves the relative position of the farmers concerned, it is not a sufficient condition for poor families (which a proportion of these producers are) to be lifted out of poverty. This can only happen if one or more members of these families are also employed as wage-earning agricultural or non-agricultural workers. The findings of the study yield important recommendations for the way in which a virtuous link can be developed between family farming and global value chains

Suggested Citation

  • Masi, Fernando & Setrini, Gustavo & Arce, Lucas & González, Cynthia & Servín, Belén, 2011. "Trade and poverty in Paraguay: the case of an agribusiness value chain," Documentos de Proyectos 417, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
  • Handle: RePEc:ecr:col022:3893
    Note: Incluye bibliografía

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Robert P. King & Derek Byerlee, 1978. "Factor Intensities and Locational Linkages of Rural Consumption Patterns in Sierra Leone," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 60(2), pages 197-206.
    2. Tyler, William G., 1981. "Growth and export expansion in developing countries : Some empirical evidence," Journal of Development Economics, Elsevier, vol. 9(1), pages 121-130, August.
    3. Edwards, Sebastian, 1998. "Openness, Productivity and Growth: What Do We Really Know?," Economic Journal, Royal Economic Society, vol. 108(447), pages 383-398, March.
    4. Haggblade, Steven & Hazell, Peter B. R. & Reardon, Thomas Anthony (ed.), 2007. "Transforming the rural nonfarm economy: Opportunities and threats in the developing world," IFPRI books, International Food Policy Research Institute (IFPRI), number 978-0-8018-8664-5, OCTOBER.
    5. Dollar, David, 1992. "Outward-Oriented Developing Economies Really Do Grow More Rapidly: Evidence from 95 LDCs, 1976-1985," Economic Development and Cultural Change, University of Chicago Press, vol. 40(3), pages 523-544, April.
    6. Feder, Gershon, 1983. "On exports and economic growth," Journal of Development Economics, Elsevier, vol. 12(1-2), pages 59-73.
    7. José Ernesto López Córdova & Mauricio Mesquita Moreira, 2003. "Regional Integration and Productivity: The Experiences of Brazil and Mexico," IDB Publications (Working Papers) 2790, Inter-American Development Bank.
    Full references (including those not matched with items on IDEAS)


    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:ecr:col022:3893. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Biblioteca CEPAL). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.