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Empirical Industrial Organization Economics to Analyze Developing Country Food Value Chains

Author

Listed:
  • Rocco Macchiavello

    (Department of Management, London School of Economics and Political Science, London, United Kingdom)

  • Thomas Reardon

    (Department of Agricultural, Food, and Resource Economics at Michigan State University, East Lansing, Michigan, USA)

  • Timothy J. Richards

    (Morrison School of Agribusiness, W.P. Carey School of Business, Arizona State University, Tempe, Arizona, USA)

Abstract

Food value chains (FVCs) in developing countries are transforming rapidly, with some regions in the modern stage (led by supermarkets and large processors) and other regions in a transitional stage (led by midstream small and medium enterprises). With transformation, however, come market-performance issues related to monopoly and monopsony power, vertical bargaining, contracting, and other issues addressed by empirical industrial organization (EIO) researchers. Although the concepts and methods of EIO are evolving rapidly, the two bodies of literature on EIO and FVC transformation as part of the food markets and food industries branches of development economics have not sufficiently cross-pollinated. Applying tools of modern EIO to FVCs in developing countries is now relevant because of the transformation that has occurred and possibly due to the increasing availability of data from surveys of farms, processors, and wholesalers, and for some retailers, from scanner data. We review the transformation trends, the EIO themes and tools relevant to them, and the emerging data sources.

Suggested Citation

  • Rocco Macchiavello & Thomas Reardon & Timothy J. Richards, 2022. "Empirical Industrial Organization Economics to Analyze Developing Country Food Value Chains," Annual Review of Resource Economics, Annual Reviews, vol. 14(1), pages 193-220, October.
    • Handle: RePEc:anr:reseco:v:14:y:2022:p:193-220
    DOI: 10.1146/annurev-resource-101721-023554
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    1. Neda Trifkovic, 2024. "Certifiable management standards, labor productivity, and worker wages: Evidence from the food sector in Vietnam," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 161-184, January.
    2. Palatnik, Ruslana Rachel & Freer, Mikhail & Levin, Mark & Golberg, Alexander & Zilberman, David, 2023. "Algae-Based Two-Stage Supply Chain with Co-Products," Ecological Economics, Elsevier, vol. 207(C).
    3. Thomas Reardon & Lenis Saweda O. Liverpool‐Tasie & Ben Belton & Michael Dolislager & Bart Minten & Barry Popkin & Rob Vos, 2024. "African domestic supply booms in value chains of fruits, vegetables, and animal products fueled by spontaneous clusters of SMEs," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 46(2), pages 390-413, June.

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    More about this item

    Keywords

    development; empirical industrial organization; food value chains; relational contracting; structural modeling;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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