Contract Farming and Rural Transformation: Evidence from a Field Experiment in Benin

Aminou Arouna, Jeffrey Michler and Jourdain C. Lokossou

No 25665, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. Yet, there is a lack of consensus on its ability to spur structural transformation in rural economies. We present results from a field experiment on contract farming in a developing country. While all contracts have positive effects on welfare and productivity measures, we find that the simplest contract has impacts nearly as large as contracts with additional attributes. This suggests that once price risk is resolved through the offer of a fixed-price contract, farmers are able to address other constraints on their own.

JEL-codes: C93 L14 O13 Q12 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-agr, nep-cta and nep-exp
Note: DEV
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Citations: View citations in EconPapers (12)

Published as Arouna, Aminou & Michler, Jeffrey D. & Lokossou, Jourdain C., 2021. "Contract farming and rural transformation: Evidence from a field experiment in Benin," Journal of Development Economics, Elsevier, vol. 151(C).

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Journal Article: Contract farming and rural transformation: Evidence from a field experiment in Benin (2021)
Working Paper: Contract Farming and Rural Transformation: Evidence from a Field Experiment in Benin (2019)
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