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The rise of supermarkets in developing countries: Implications for credit markets

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  • Luc, Veyssiere

Abstract

The rise of supermarket in developing countries has important implications for the agricultural system in these countries. To lessen the intense price competition in retail markets, supermarkets have introduced private food standards. While the literature has pointed out the additional financial burden for producers, associated with the introduction of supermarket standards, it has ignored its positive demand effect. This paper examines the relationship between downstream product competition and upstream credit access for agricultural producers. In doing so, the analysis shows that as long as there is coexistence of the supermarket and domestic marketing system the entry of supermarket should broaden the financial opportunities of the agricultural producers.

Suggested Citation

  • Luc, Veyssiere, 2007. "The rise of supermarkets in developing countries: Implications for credit markets," 106th Seminar, October 25-27, 2007, Montpellier, France 7936, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaa106:7936
    DOI: 10.22004/ag.econ.7936
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    References listed on IDEAS

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    1. Fernando Balsevich & Julio A. Berdegué & Luis Flores & Denise Mainville & Thomas Reardon, 2003. "Supermarkets and Produce Quality and Safety Standards in Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1147-1154.
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    3. Philippe Marcoul & Luc Veyssiere, 2010. "A Financial Contracting Approach to the Role of Supermarkets in Farmers' Credit Access," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(4), pages 1051-1064.
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