Title: Quality and inclusion of small producers in value chains: a theoretical note
Authors: Vandemoortele, Thijs
Rozelle, Scott
Swinnen, Jo
Xiang, Tao
Issue Date: 2009
Publisher: K.U.Leuven - Licos
Series Title: LICOS - Discussion paper series DP246/2009 pages:1-38
Abstract: This paper develops a formal theory of the endogenous process of the introduction of high quality products 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.
Publication status: published
KU Leuven publication type: IR
Appears in Collections:LICOS - Centre for Institutions and Economic Performance, Leuven
Research Center of Development Economics, Leuven

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