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Standards Driven Rural Development: A General Equilibrium Model with Market Imperfections AgEcon
Xiang, Tao; Huang, Jikun; Kancs, d'Artis; Swinnen, Johan F.M..
We develop a general equilibrium households model to analyze the effects of high standards food chains taking seriously into account market imperfections. To measure structural production changes and welfare effects on rural and urban households, our model has two types of agents, five kinds of products and four types of factors. We calibrate the model using dataset from China and do simulations through three ways: increasing world price of high standards food, increasing urban households’ preference for high standards food, and relaxing credit constraints on high standards food production. The simulation results show that how poor households are affected depends on the nature of the shocks leading to the expansion of high standards sector and the market...
Tipo: Conference Paper or Presentation Palavras-chave: Standards; Rural Development; General Equilibrium; Market Imperfections; Agricultural and Food Policy.
Ano: 2009 URL: http://purl.umn.edu/51476
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A Theory of Standards-Driven Rural Development AgEcon
Swinnen, Johan F.M.; Rozelle, Scott; Xiang, Tao; Vandemoortele, Thijs.
Consumers have increasing demands for product standards. This has important implications for development. This paper develops a formal theory of the process of the introduction of high product standards in developing countries. The model endogenizes the introduction of high standards. Initial differences in income, the nature of capital constraints and transaction costs, the initial production structure and policies and institutions are shown to affect the likelihood of and the size of the high standards economy. Initial differences in some of these same factors—as well as inter-country differences in the distribution of the sizes of farmers—are also shown to determine which producers are included, and which not.
Tipo: Conference Paper or Presentation Palavras-chave: Standards; Rural Development; Vertical Differentiation; Partial Equilibrium; Agricultural and Food Policy.
Ano: 2009 URL: http://purl.umn.edu/51475
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