The Impact on Farmers of the Privatization of Integrated Agricultural Monopsonies

Paul Makdissi () and Quentin Wodon ()

Cahiers de recherche from Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke

Abstract: International Financial Institutions have advocated the privatization of integrated agricultural monopsonies in developing countries with the hope that competition between private firms under a contract farming system would reduce inefficiencies in production and enable farmers to obtain a higher share of world commodity prices. \ Using a very simple theoretical model, this paper shows however that the impact of privatization and contract farming may not be positive for all farmers.

Keywords: Privatization; Cotton; Africa; Welfare (search for similar items in EconPapers)
JEL-codes: O13 L1 D42 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr and nep-com
Date: 2001, Revised 2004
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Persistent link: http://EconPapers.repec.org/RePEc:shr:wpaper:04-08

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