Contracts and Cooperation: The Relative Failure of the Irish Dairy Industry in the Late Nineteenth Century Reconsidered

Ingrid Henriksen (), Eoin McLaughlin and Paul Sharp
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Ingrid Henriksen: University of Southern Denmark

No 2015-01, Discussion Papers in Environment and Development Economics from University of St. Andrews, School of Geography and Sustainable Development

Abstract: Why did the establishment of cooperative creameries in late nineteenth century Ireland fail to halt the relative decline of her dairy industry compared to other emerging producers? This paper compares the Irish experience with that of the market leader, Denmark, and shows how each adopted the cooperative organisational form, but highlights that an important difference was institutional: specifically regarding the enforcement of vertically binding contracts, which are considered to be of vital importance for the successful operation of cooperatives. We argue that this failure, combined with a strong proprietary sector which was opposed to cooperation, reinforced the already difficult conditions for dairying in Ireland due to poor social capital.

Keywords: Contracts; cooperation; dairying; Ireland (search for similar items in EconPapers)
JEL-codes: K12 L31 N43 N53 Q13 (search for similar items in EconPapers)
Pages: 65 pages
Date: 2015-01
New Economics Papers: this item is included in nep-his and nep-law
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Citations: View citations in EconPapers (17)

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Related works:
Journal Article: Contracts and cooperation: the relative failure of the Irish dairy industry in the late nineteenth century reconsidered (2015)
Working Paper: Contracts and cooperation: The relative failure of the Irish dairy industry in the late nineteenth century reconsidered (2015)
Working Paper: Contracts and cooperation: The relative failure of the Irish dairy industry in the late nineteenth century reconsidered (2015)
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