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Contractual Arrangements of Traders in Chinese Wholesale Markets

Author

Listed:
  • Yu, Xiaohua
  • Abler, David G.
  • Zeng, Yinchu

Abstract

Using a survey data of 700 traders, this study scrutinizes contract choices and enforcement for agricultural traders in China. This study finds that market service and environment are very important for both contract choices and enforcement. Better market service and environment can increase the propensity of using contract and the probability of contract enforcement both for purchase and sales of products. Education and memberships of special associations are also important for contract choices and enforcement. Higher education and affiliation to special associations for traders can increase the propensity of contracts and reduce contract breaches. However, the formats of contracts, whether contracts are oral or written, are not important for contract enforcement.

Suggested Citation

  • Yu, Xiaohua & Abler, David G. & Zeng, Yinchu, 2009. "Contractual Arrangements of Traders in Chinese Wholesale Markets," 2009 Conference, August 16-22, 2009, Beijing, China 51399, International Association of Agricultural Economists.
    • Handle: RePEc:ags:iaae09:51399
    DOI: 10.22004/ag.econ.51399
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    References listed on IDEAS

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    1. Marcel Fafchamps & Bart Minten, 2001. "Social Capital and Agricultural Trade," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(3), pages 680-685.
    2. Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 25(3), pages 331-350.
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    5. Yu, Xiaohua & Abler, David G. & Peng, Chao, 2008. "Dancing with the Dragon Heads: Enforcement, Innovations and Efficiency of Contracts between Agricultural Processors and Farmers in China," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6144, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Jaenicke, Edward C. & Shields, Martin & Kelsey, Timothy W., 2007. "Food Processors' Use of Contracts to Purchase Agricultural Inputs: Evidence from a Pennsylvania Survey," Agricultural and Resource Economics Review, Cambridge University Press, vol. 36(2), pages 213-229, October.
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    8. Fafchamps, Marcel, 1996. "The enforcement of commercial contracts in Ghana," World Development, Elsevier, vol. 24(3), pages 427-448, March.
    9. Beckmann, Volker & Boger, Silke, 2004. "Courts and contract enforcement in transition agriculture: theory and evidence from Poland," Agricultural Economics, Blackwell, vol. 31(2-3), pages 251-263, December.
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    Cited by:

    1. Li, Zhigang & Yu, Xiaohua & Zeng, Yinchu & Holst, Rainer, 2012. "Estimating transport costs and trade barriers in China: Direct evidence from Chinese agricultural traders," China Economic Review, Elsevier, vol. 23(4), pages 1003-1010.
    2. Waldron, Scott & Brown, Colin & Longworth, John, 2010. "A critique of high-value supply chains as a means of modernising agriculture in China: The case of the beef industry," Food Policy, Elsevier, vol. 35(5), pages 479-487, October.
    3. Hu, Lifang & Lopez, Rigoberto A. & Zeng, Yinchu, 2020. "Determinants of credit constraints for agricultural wholesalers in China," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 23(4), June.

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