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The Impact on Farmers of the Privatization of Integrated Agricultural Monopsonies

Author

Listed:
  • Paul Makdissi

    () (Département d'économique, Université de Sherbrooke)

  • Quentin Wodon

    () (AFTPM, World Bank)

Abstract

International Financial Institutions have advocated the privatization of integrated agricultural monopsonies in developing countries with the hope that competition between private firms under a contract farming system would reduce inefficiencies in production and enable farmers to obtain a higher share of world commodity prices. \ Using a very simple theoretical model, this paper shows however that the impact of privatization and contract farming may not be positive for all farmers.

Suggested Citation

  • Paul Makdissi & Quentin Wodon, 2001. "The Impact on Farmers of the Privatization of Integrated Agricultural Monopsonies," Cahiers de recherche 04-08, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke, revised 2004.
  • Handle: RePEc:shr:wpaper:04-08
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    File URL: http://gredi.recherche.usherbrooke.ca/wpapers/04_08_pm.pdf
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    Keywords

    Privatization; Cotton; Africa; Welfare;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly

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