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AbstractThe debate on trade and poverty is reinforced by recent studies on the role of standards. It is argued that increasing standards act as trade barriers for developing countries and cause further marginalization of the poor. This paper is the first to quantify income and poverty effects of such high-standards trade and to integrate labor market effects, by using company and household survey data from the vegetable export chain in Senegal. We find that exports have grown sharply despite increasing standards, resulting in important income gains and poverty reduction. Our estimates indicate that poverty is 14 % points lower due to vegetable exports. Tightening food standards induced a shift from smallholder contract-based farming to large-scale integrated estate production, altering the mechanism through which poor households benefit: through labor markets instead of product markets. The impact on poverty reduction is stronger as the poorest benefit relatively more from working on large-scale farms than from contract farming.JEL Classification: F14; F16; I3; Q12; Q13; Q17
Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.
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Food and agricultural commodity value chains in developing and transition countries have undergone tremendous changes in the past decades. Companies and property rights have been privatized, markets liberalized, and economies integrated into global food systems. The liberalization and privatization initially caused the collapse of state-controlled vertical coordination. More recently, private vertical coordination systems have emerged and are growing rapidly as a response to consumer demand for food quality and safety on the one hand and the farms' production constraints caused by factor market imperfections. In this article we (1) demonstrate the importance of these changes, (2) discuss the implications for efficiency and equity, and (3) provide empirical evidence on the effects in several developing and transition countries. Copyright 2007 International Association of Agricultural Economists.
The paper analyzes the linkages between the reform strategies in transition countries and economic performance. We focus on agriculture because of the sharpness of the policy changes, fundamental differences among countries, and relative simplicity of agricultural relationships. We document post reform performance in the transition countries of Asia and Europe. We show how: a.) pricing reform and subsidy reductions; b.) land rights reform and policies that affect farm restructuring; and c.) the presence institutions that facilitate exchange (either markets or market substitutes) affect output and productivity. The paper ends with general lessons on reforms and transition.
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