Contract farming and rural transformation: Evidence from a field experiment in Benin
| Autor: | Jourdain Lokossou, Jeffrey D. Michler, Aminou Arouna |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
Economics and Econometrics
Field experiment media_common.quotation_subject Developing country Development Agricultural economics 0502 economics and business Production (economics) Contract farming 050207 economics Rice farmers Productivity 050205 econometrics media_common Public economics Sub-Saharan Africa business.industry 05 social sciences Regular Article Structural transformation Transformation (function) Agriculture Food systems Business Rice Welfare RCT Panel data |
| Zdroj: | Journal of Development Economics |
| ISSN: | 0304-3878 |
| Popis: | Contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. Yet, there is a lack of consensus on its ability to spur structural transformation in rural economies. We present results from a field experiment on contract farming for rice production in Benin. While all contracts have positive effects on welfare and productivity measures, we find that the simplest contract has impacts nearly as large as contracts with additional attributes. This suggests that once price risk is resolved through the offer of a fixed-price contract, farmers are able to address other constraints on their own. Highlights • We describe evidence from the first RCT on contract farming in a developing country. • All contracts have positive effects on welfare and productivity measures. • The simplest contract has impacts nearly as large as contracts with additional attributes. • Results suggests that once price risk is resolved farmers are able to address other constraints on their own. |
| Databáze: | OpenAIRE |
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