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The Determination of Contracts in Agricultural Economies

  • Lanzona, Leonardo
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    This paper aims to analyze how contracts are determined and modified given diverse agricultural settings and to examine the implications of these changes with respect to their efficiency, distribution, and sustainability. The contract model presented here differs from previous contract models as the enforcement issues regarding contracts across various agro-climatic and output conditions are considered. Emphasis is placed on the effects of the shifts in production resulting from historical changes in both policy and production environments on the development contracts. Moreover, the consequences of the enforcement costs of contractual arrangements will be examined. Although much of the focus is on the rice economy, this paper attempts to provide an integrative description of the various agricultural contracts in different places in the Philippines. This will integrate the papers written on the contracts found in the fishing industry, the contract growing arrangements in Mindanao, and the contracts in swine, vegetable, and mango production. Along with secondary data, the methodology for gathering data for this research includes rapid appraisal surveys and field interviews.

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    Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2007-23.

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    Length: 42
    Date of creation: 2007
    Date of revision:
    Handle: RePEc:phd:dpaper:dp_2007-23
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    1. Williamson, Jeffrey G, 1997. "Globalization and Inequality, Past and Present," World Bank Research Observer, World Bank Group, vol. 12(2), pages 117-35, August.
    2. Otsuka, Keijiro & Chuma, Hiroyuki & Hayami, Yujiro, 1993. "Permanent Labour and Land Tenancy Contracts in Agrarian Economies: An Integrated Analysis," Economica, London School of Economics and Political Science, vol. 60(237), pages 57-77, February.
    3. R. H. Coase, 1972. "Industrial Organization: A Proposal for Research," NBER Chapters, in: Economic Research: Retrospect and Prospect, Volume 3, Policy Issues and Research Opportunities in Industrial Organization, pages 59-73 National Bureau of Economic Research, Inc.
    4. Binswanger, Hans P. & Deininger, Klaus & Feder, Gershon, 1993. "Power, distortions, revolt, and reform in agricultural land relations," Policy Research Working Paper Series 1164, The World Bank.
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