Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam
We study the effect of alleviating the information asymmetry regarding product quality that is widespread in contracts between agricultural producers and buyers in developing countries. Opportunistic buyers may underreport quality levels to farmers to reduce the price that they have to pay. In respo...
| Autores principales: | , , |
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| Formato: | Journal Article |
| Lenguaje: | Inglés |
| Publicado: |
Wiley
2014
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/10568/149563 |
| _version_ | 1855540530772967424 |
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| author | Saenger, Christoph Torero, Máximo Qaim, Matin |
| author_browse | Qaim, Matin Saenger, Christoph Torero, Máximo |
| author_facet | Saenger, Christoph Torero, Máximo Qaim, Matin |
| author_sort | Saenger, Christoph |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | We study the effect of alleviating the information asymmetry regarding product quality that is widespread in contracts between agricultural producers and buyers in developing countries. Opportunistic buyers may underreport quality levels to farmers to reduce the price that they have to pay. In response, farmers may curb investment, thereby negatively affecting farm productivity. In an experiment, we entitle randomly selected smallholder dairy farmers in Vietnam, who are contracted by a large company, to independently verify milk testing results. Results indicate that treatment farmers use 12% more inputs, and they also increase their output significantly. Some wider research and policy implications are discussed. |
| format | Journal Article |
| id | CGSpace149563 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2014 |
| publishDateRange | 2014 |
| publishDateSort | 2014 |
| publisher | Wiley |
| publisherStr | Wiley |
| record_format | dspace |
| spelling | CGSpace1495632024-10-25T08:05:38Z Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam Saenger, Christoph Torero, Máximo Qaim, Matin milk production field experimentation randomized controlled trials smallholders developing countries agro-industrial sector contract farming We study the effect of alleviating the information asymmetry regarding product quality that is widespread in contracts between agricultural producers and buyers in developing countries. Opportunistic buyers may underreport quality levels to farmers to reduce the price that they have to pay. In response, farmers may curb investment, thereby negatively affecting farm productivity. In an experiment, we entitle randomly selected smallholder dairy farmers in Vietnam, who are contracted by a large company, to independently verify milk testing results. Results indicate that treatment farmers use 12% more inputs, and they also increase their output significantly. Some wider research and policy implications are discussed. 2014 2024-08-01T02:49:32Z 2024-08-01T02:49:32Z Journal Article https://hdl.handle.net/10568/149563 en Limited Access Wiley Saenger, Christoph; Torero, Máximo; and Qaim, Matin. 2014. Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam. American Journal of Agricultural Economic 96(4): 1220-1238. https://doi.org/10.1093/ajae/aau021 |
| spellingShingle | milk production field experimentation randomized controlled trials smallholders developing countries agro-industrial sector contract farming Saenger, Christoph Torero, Máximo Qaim, Matin Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam |
| title | Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam |
| title_full | Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam |
| title_fullStr | Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam |
| title_full_unstemmed | Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam |
| title_short | Impact of third-party contract enforcement in agricultural markets—A field experiment in Vietnam |
| title_sort | impact of third party contract enforcement in agricultural markets a field experiment in vietnam |
| topic | milk production field experimentation randomized controlled trials smallholders developing countries agro-industrial sector contract farming |
| url | https://hdl.handle.net/10568/149563 |
| work_keys_str_mv | AT saengerchristoph impactofthirdpartycontractenforcementinagriculturalmarketsafieldexperimentinvietnam AT toreromaximo impactofthirdpartycontractenforcementinagriculturalmarketsafieldexperimentinvietnam AT qaimmatin impactofthirdpartycontractenforcementinagriculturalmarketsafieldexperimentinvietnam |