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Supplier dynamics in horticultural export chains – Evidence from Ecuador. Revised version

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  • Romero, Cristina
  • Wollni, Meike

Abstract

In this paper we study the dynamics of smallholder participation in export value chains focusing on the example of small-scale broccoli producers in the highlands of Ecuador. We analyze the extent of participation over an 11-year time period using correlated random effects and diff-GMM models and explain the hazards of dropping out of the export chain based on a multi-spell cox duration model. The empirical results suggest that small-scale farmers' exit from the export sector is accelerated by hold-ups experienced in the past and that family ties play an important role in farmers' marketing decisions. Negative external shocks – such as the global financial crisis starting in 2007 that was associated with the bankruptcy of the main buyer in our case study – represent a major threat towards the sustainability of smallholder inclusion in high-value chains

Suggested Citation

  • Romero, Cristina & Wollni, Meike, 2015. "Supplier dynamics in horticultural export chains – Evidence from Ecuador. Revised version," GlobalFood Discussion Papers 209961, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    • Handle: RePEc:ags:gagfdp:209961
    DOI: 10.22004/ag.econ.209961
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