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Quality and Inclusion of Producers in Value Chains: A Theoretical Note

Year: 2012

Type: article

Abstract: This paper develops a formal theory of the endogenous process of the introduction of high quality production in developing countries. Initial differences in income and capital and transaction costs are shown to affect the emergence of and the size of the high quality economy. Initial differences in the production structure and the nature of transaction costs—as well as the possibility of contracting between producers and processors—are shown to determine which producers are included in the high quality economy, and which not.

Source: Review of Development Economics

DOI: 10.1111/j.1467-9361.2011.00649.x

Authors: Thijs Vandemoortele, Scott Rozelle, Johan Swinnen, Tao Xiang

Institutions: KU Leuven, Stanford University, Northeastern University

Language: English

Topic: Global trade, sustainability, and social impact

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

Funders: Fonds Wetenschappelijk Onderzoek, KU Leuven, China Scholarship Council, Vlaamse regering