Allocation of Decision Rights in Fruit and Vegetable Contracts in China

Yamei Hu and George Hendrikse

ERIM Report Series Research in Management from Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam

Abstract: We empirically examine the determinants of the allocation of decision rights in the context of fruit and vegetable contracting. The main conclusion is that under contract farming, many decision rights are shifted from farmers to firms. Quality, reputation and specific investments by firms positively influence the number of decision rights allocated to agri-business firms under contract farming, while monopsony-oligopsony power and specific investments by farmers have no effect on the allocation of decision rights.

Keywords: china; contractmanagement; contracts; decision rights (search for similar items in EconPapers)
JEL-codes: D43 M M13 N55 O32 (search for similar items in EconPapers)
Date: 2007-10-31
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Citations: View citations in EconPapers (1)

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