Quality and inclusion of small producers in value chains: a theoretical note

Thijs Vandemoortele (), Scott Rozelle, Johan Frans Maria Swinnen () and Tao Xiang ()

Open Access publications from Katholieke Universiteit Leuven from Katholieke Universiteit Leuven

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.

Date: 2009
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Related works:
Working Paper: Quality and Inclusion of Small Producers in Value Chains: A Theoretical Note (2009)
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