Economics at your fingertips  

Technology Adoption, Vertical Coordination in Value Chains, and FDI in Developing Countries: Panel Evidence from the Dairy Sector in India (Punjab)

Saule Burkitbayeva (), Emma Janssen () and Johan Swinnen ()
Additional contact information
Saule Burkitbayeva: KU Leuven
Emma Janssen: KU Leuven

Review of Industrial Organization, 2020, vol. 57, issue 2, No 12, 433-479

Abstract: Abstract (Global) value chains have contributed to agricultural technology adoption in transition countries and food export commodities in developing countries through various forms of vertical coordination, often associated with FDI. Adoption of modern technologies in agriculture is crucial for improving the productivity and welfare of poor farmers. Much less is known about how (global) value chains do (not) affect technology transfer and/or adoption in staple food chains in developing countries, and the role that FDI plays. Our paper analyses the role of value chains and FDI in farm-level technology adoption with the use of panel data from representative farm surveys in 2008 and 2015 (a period of rapid growth) in the dairy sector in India (Punjab). We find important increases in the adoption of some technologies among traditional and poor dairy farms. However, the role of vertical coordination in value chains in stimulating technology adoption among these traditional dairy farmers seems to be minor, both for domestic and for FDI companies. At the same time a sub-sector of dynamic modern dairy farms has emerged. These farms are much larger, use only modern technology, and are fully integrated in vertically coordinated value chains that support these modern farms’ management and investments.

Keywords: Value chains; Technology adoption; FDI; Agriculture; Developing countries; India (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... on/journal/11151/PS2

DOI: 10.1007/s11151-020-09763-1

Access Statistics for this article

Review of Industrial Organization is currently edited by L.J. White

More articles in Review of Industrial Organization from Springer, The Industrial Organization Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

Page updated 2021-03-05
Handle: RePEc:kap:revind:v:57:y:2020:i:2:d:10.1007_s11151-020-09763-1