Title: Governance and Surplus Distribution in Commodity Value Chains in Africa
Authors: Swinnen, Jo
Vandeplas, Anneleen
Maertens, Miet
Issue Date: 2007
Series Title: 106th Seminar Paper
Conference: Seminar of the European Association of Agricultural Economists edition:106 location:Montpellier date:25-27 October 2007
Abstract: The governance of food markets is a crucial element for efficiency and distributional effects. In this paper, we use a conceptual model to show that this governance itself is endogenous in an environment of weak contract enforcement and imperfect markets, and importantly depends on the value in the chain. We relate the predictions of the theory to empirical evidence on differences in supply chain governance in Africa across different commodity types. In doing so we offer an explanation as why private sector governance systems with interlinked market transactions have emerged for higher value crops but not for staple food crops. We discuss the efficiency and equity effects and the implications for policy.
Publication status: published
KU Leuven publication type: IMa
Appears in Collections:Division of Bioeconomics
LICOS - Centre for Institutions and Economic Performance, Leuven
Department of Economics, Leuven - miscellaneous

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