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Governance and Surplus Distribution in Commodity Value Chains in Africa

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  • Swinnen, Johan F.M.
  • Vandeplas, Anneleen
  • Maertens, Miet

Abstract

The governance of food markets is a crucial element for efficiency and distributional effects. In this paper, we use a conceptual model to show that this governance itself is endogenous in an environment of weak contract enforcement and imperfect markets, and importantly depends on the value in the chain. We relate the predictions of the theory to empirical evidence on differences in supply chain governance in Africa across different commodity types. In doing so we offer an explanation as why private sector governance systems with interlinked market transactions have emerged for higher value crops but not for staple food crops. We discuss the efficiency and equity effects and the implications for policy.

Suggested Citation

  • Swinnen, Johan F.M. & Vandeplas, Anneleen & Maertens, Miet, 2007. "Governance and Surplus Distribution in Commodity Value Chains in Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7950, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa106:7950
    DOI: 10.22004/ag.econ.7950
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    2. Eaton, Derek J.F. & Meijerink, Gerdien W. & Bijman, Jos & Belt, John, 2007. "Analysing the role of institutional arrangements: vegetable value chains in East Africa," 106th Seminar, October 25-27, 2007, Montpellier, France 7921, European Association of Agricultural Economists.
    3. Maertens, Miet & Vande Velde, Katrien, 2017. "Contract-farming in Staple Food Chains: The Case of Rice in Benin," World Development, Elsevier, vol. 95(C), pages 73-87.
    4. Hendrik Feyaerts & Goedele Van den Broeck & Miet Maertens, 2020. "Global and local food value chains in Africa: A review," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 143-157, January.
    5. Kym Anderson & Gordon Rausser & Johan Swinnen, 2013. "Political Economy of Public Policies: Insights from Distortions to Agricultural and Food Markets," Journal of Economic Literature, American Economic Association, vol. 51(2), pages 423-477, June.

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