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A Two-Stage Value Chain Model for Vegetable Marketing Chain Efficiency Evaluation: A Transaction Cost Approach

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  • Lu, Hualiang

Abstract

We applied a two-stage value chain model to investigate the effects of input application and occasional transaction costs on vegetable marketing chain efficiencies with a farm household-level data set. In the first stage, the production efficiencies with the combination of resource endowments, capital and managerial inputs, and production techniques were evaluated; then at the second stage, the marketing technical efficiencies were determined under the marketing value of the vegetables for three typical marketing chains in Nanjing area, P.R. China. The impacts of the transaction costs to the supply chain technical efficiency both at the production and marketing stages were examined by using Tobit model. Study showed that transaction costs significantly impacts on vegetable marketing chain efficiency in research area. Results also revealed that the impacts of transaction costs on marketing chain efficiency differ cross chains. This paper concluded with the reduction of the various types of transaction costs incurred in the vegetable marketing chains as managerial implementations for technical efficiency improvement and farmers' income increasing.

Suggested Citation

  • Lu, Hualiang, 2006. "A Two-Stage Value Chain Model for Vegetable Marketing Chain Efficiency Evaluation: A Transaction Cost Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25327, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae06:25327
    DOI: 10.22004/ag.econ.25327
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    Cited by:

    1. Thuzar Linn & Broos Maenhout, 2019. "The impact of environmental uncertainty on the performance of the rice supply chain in the Ayeyarwaddy Region, Myanmar," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 7(1), pages 1-29, December.
    2. Never Mafuse & Mushunje Abbysinia & Emmanuel Zivenge, 2021. "Institutions, Production And Marketing Of Maize In Zimbabwe. Case Of Marondera District Of Mashonaland East Province A Two Stage Model," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 2(2), pages 73-80, March.

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    Keywords

    Industrial Organization;

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