Quality and Inclusion of Producers in Value Chains: A Theoretical Note
Thijs Vandemoortele (),
Johan Swinnen () and
Tao Xiang ()
LICOS Discussion Papers from LICOS - Centre for Institutions and Economic Performance, KU Leuven
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 "C as well as the possibility of contracting between producers and processors "C are shown to determine which producers are included in the high quality economy, and which not.
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Journal Article: Quality and Inclusion of Producers in Value Chains: A Theoretical Note (2012)
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Persistent link: http://EconPapers.repec.org/RePEc:lic:licosd:24609
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