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Coordination risk and cost impacts on economic development in poor rural areas

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  • Dorward, Andrew
  • Kydd, Jonathan
  • Poulton, Colin
  • Bezemer, Dirk

Abstract

This paper addresses issues relevant to a critical problem in economic development: how to get rapid pro-poor economic growth in poor rural areas in Africa and South Asia where most of the world’s dollar a day poor live. It examines constraints to the development of coordinated exchange systems in poor rural areas, focusing on the core problem of thin markets and low density of economic activity in these areas. Transaction cost and risk analysis is integrated into a conventional neoclassical production economics framework to describe the existence of low level equilibrium traps in transactions and supply chains and to generate important insights for development policy.

Suggested Citation

  • Dorward, Andrew & Kydd, Jonathan & Poulton, Colin & Bezemer, Dirk, 2007. "Coordination risk and cost impacts on economic development in poor rural areas," MPRA Paper 7028, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:7028
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    References listed on IDEAS

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    1. Bezemer, Dirk & Headey, Derek, 2008. "Agriculture, Development, and Urban Bias," World Development, Elsevier, vol. 36(8), pages 1342-1364, August.
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    11. Poulton, Colin & Dorward, Andrew & Kydd, Jonathan, 2010. "The Future of Small Farms: New Directions for Services, Institutions, and Intermediation," World Development, Elsevier, vol. 38(10), pages 1413-1428, October.
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    Cited by:

    1. Getnet, Kindie & Pfeifer, Catherine & MacAlister, Charlotte, 2014. "Economic incentives and natural resource management among small-scale farmers: Addressing the missing link," Ecological Economics, Elsevier, vol. 108(C), pages 1-7.
    2. Derek Byerlee & Klaus Deininger, 2013. "The Rise of Large Farms in Land-Abundant Countries: Do They Have a Future?," Palgrave Macmillan Books, in: Stein T. Holden & Keijiro Otsuka & Klaus Deininger (ed.), Land Tenure Reform in Asia and Africa, chapter 14, pages 333-353, Palgrave Macmillan.
    3. Ken E. Giller & Thomas Delaune & João Vasco Silva & Mark Wijk & James Hammond & Katrien Descheemaeker & Gerrie Ven & Antonius G. T. Schut & Godfrey Taulya & Regis Chikowo & Jens A. Andersson, 2021. "Small farms and development in sub-Saharan Africa: Farming for food, for income or for lack of better options?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 13(6), pages 1431-1454, December.
    4. Thiele, Graham & Devaux, André & Reinoso, Iván & Pico, Hérnan & Montesdeoca, Fabián & Pumisacho, Manuel & Andrade-Piedra, Jorge & Velasco, Claudio & Flores, Paola & Esprella, Raúl & Thomann, Alice & M, 2016. "Multistakeholder platforms for linking small farmers to value chains: Evidence from the Andes," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 8, pages 249-268, International Food Policy Research Institute (IFPRI).
    5. Bettles, Joseph & Battisti, David S. & Cook-Patton, Susan C. & Kroeger, Timm & Spector, June T. & Wolff, Nicholas H. & Masuda, Yuta J., 2021. "Agroforestry and non-state actors: A review," Forest Policy and Economics, Elsevier, vol. 130(C).
    6. Apata, Temidayo Gabriel & Folayan, A. & Apata, O.M. & Akinlua, J., 2011. "The Economic Role of Nigeria’s Subsistence Agriculture in the Transition Process: Implications for Rural Development," 85th Annual Conference, April 18-20, 2011, Warwick University, Coventry, UK 108942, Agricultural Economics Society.
    7. Benin, Samuel & Johnson, Michael E. & Abokyi, Emmanuel & Ahorbo, Gerald & Jimah, Kipo & Nasser, Gamel & Owusu, Victor & Taabazuing, Joe & Tenga, Albert, 2013. "Revisiting agricultural input and farm support subsidies in Africa: The case of Ghana’s mechanization, fertilizer, block farms, and marketing programs:," IFPRI discussion papers 1300, International Food Policy Research Institute (IFPRI).
    8. Lorena Lombardozzi, 2024. "Untangling the nexus between marketization, crop diversity, farmers' wealth and nutrition: The case of Uzbekistan," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1489-1506, March.
    9. Edward Martey & Prince Etwire & Alexander Wiredu & Wilson Dogbe, 2014. "Factors influencing willingness to participate in multi-stakeholder platform by smallholder farmers in Northern Ghana: implication for research and development," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-15, December.
    10. Lemeilleur, Sylvaine & Codron, Jean-Marie, 2011. "Marketing cooperative vs. commission agent: The Turkish dilemma on the modern fresh fruit and vegetable market," Food Policy, Elsevier, vol. 36(2), pages 272-279, April.
    11. Margitta Minah, 2022. "What is the influence of government programs on farmer organizations and their impacts? Evidence from Zambia," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 29-53, March.

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    More about this item

    Keywords

    Development; agriculture; market liberalization; coordination problem;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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