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A Theory of Standards-Driven Rural Development

Author

Listed:
  • Johan F.M. Swinnen
  • Scott Rozelle
  • Tao Xiang
  • Thijs Vandemoortele

Abstract

Consumers have increasing demands for product standards. This has important implications for development. This paper develops a formal theory of the process of the introduction of high product standards in developing countries. The model endogenizes the introduction of high standards. Initial differences in income, the nature of capital constraints and transaction costs, the initial production structure and policies and institutions are shown to affect the likelihood of and the size of the high standards economy. Initial differences in some of these same factors-as well as inter-country differences in the distribution of the sizes of farmers-are also shown to determine which producers are included, and which not.

Suggested Citation

  • Johan F.M. Swinnen & Scott Rozelle & Tao Xiang & Thijs Vandemoortele, 2008. "A Theory of Standards-Driven Rural Development," LICOS Discussion Papers 19908, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
  • Handle: RePEc:lic:licosd:19908
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    File URL: http://www.econ.kuleuven.be/licos/publications/dp/dp199.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Minten, Bart & Singh, K.M. & Sutradhar, Rajib, 2011. "Branding in food retail of high value crops in Asia: Case of Makhana from Bihar (India)," MPRA Paper 54334, University Library of Munich, Germany, revised 31 Jan 2011.
    2. Minten, Bart & Singh, K.M. & Sutradhar, Rajib, 2010. "The makhana value chain and the fast emergence of branding in food retail: Evidence from Bihar (India)," MPRA Paper 54344, University Library of Munich, Germany, revised 14 Jan 2010.
    3. Minten, Bart & Reardon, Thomas & Vandeplas, Anneleen, 2009. "Linking urban consumers and rural farmers in India: A comparison of traditional and modern food supply chains," IFPRI discussion papers 883, International Food Policy Research Institute (IFPRI).
    4. Minten, Bart & Singh, K.M. & Sutradhar, Rajib, 2011. "The rapid emergence of branding in food retail in Asia: Insights from Bihar (India)," MPRA Paper 54337, University Library of Munich, Germany, revised 14 Jan 2011.
    5. Swinnen Johan & Vandeplas Anneleen, 2012. "Rich Consumers and Poor Producers: Quality and Rent Distribution in Global Value Chains," Journal of Globalization and Development, De Gruyter, vol. 2(2), pages 1-30, January.
    6. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    7. Bignebat, C. & Vagneron, I., 2011. "Cross-border coordination in the Madagascar-EU lychee chain: the role of GlobalGAP," Working Papers MOISA 201106, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro - Montpellier, France.
    8. Liang, Qiao & Hendrikse, George W. J. & Huang, Zuhui, 2010. "Quality provision and governance structure variety: Pooling versus double markup," IAMO Forum 2010: Institutions in Transition – Challenges for New Modes of Governance 52694, Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO).

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