scholarly journals An industrial organisation model for the Vietnamese food retail market

2021 ◽  
Vol 66 (229) ◽  
pp. 61-97
Author(s):  
Chi Ngo
Keyword(s):  
Developing Countries ◽  
Nash Equilibrium ◽  
Distribution System ◽  
Imperfect Competition ◽  
Food Distribution ◽  
Policy Implications ◽  
Market Model ◽  
Industrial Organisation ◽  
Food Market ◽  
Small Producers

Using the case of Vietnam, this paper proposes an industrial organisation model of the food distribution system in developing countries. Since most work in this field has adopted an empirical approach, this paper will instead focus on a theoretical model based on the theory of imperfect competition applied in agricultural economics. We introduce two distribution channels of product differentiation linked vertically by demand, and study the quantity flow from small producers to consumers by means of a Nash equilibrium. We show that there is a Nash equilibrium of the food distribution system and market power, with effects on both farmers and consumers. The paper discusses the implications of these results and proposes policies to intervene in the market and mitigate its power to improve the wealth of both farmers and consumers. The competitive market model of the food distribution system presented in this paper is also important in analysing the policy implications of a food market with imperfect competition in developing countries.

scholarly journals Middlemen Market Power and Land Reform Policy Implication: An Imperfect Competition Analysis for the Traditional Food Market of Vietnam

2018 ◽  
Vol 10 (5) ◽  
pp. 31
Author(s):  
Ngo Chi Thanh
Keyword(s):  
Distribution System ◽  
Policy Implication ◽  
Land Reform ◽  
Imperfect Competition ◽  
Food System ◽  
Choice Model ◽  
Food Distribution ◽  
Traditional Food ◽  
Reform Policy ◽  
Food Market

The traditional food distribution system is often characterized by small farmers and of several retailer called middlemen who sell their products on market. Since the intermediaries and their market powers are largely considerable in the food market, this paper proposes an industrial organization model of the middlemen in this conventional food distribution system for developing countries. Since most of the works in this field has adopted an empirical approach, the focus of our study in this paper will be instead on theoretical model. In order to analyze this situation, we borrow several arguments from the theory of imperfect competition. We assume that middlemen have oliopsony and oligopoly power in the up and down stream of the food system. We defined the consumer behavior by discrete choice model and study the quantity flow from small producers to the consumers by mean of Cournot competition. We address the question of land reform policy implication by creating a productivity shock in order to examine the effect of this instrument on the wealth of both farmers and consumers.

scholarly journals Oligopoly competition on market with food products

2011 ◽  
Vol 57 (No. 12) ◽  
pp. 580-588 ◽  
Author(s):  
L. Severová ◽  
L. Kopecká ◽  
R. Svoboda ◽  
J. Brčák
Keyword(s):  
Imperfect Competition ◽  
Market Competition ◽  
Market Model ◽  
Oligopolistic Competition ◽  
Food Sector ◽  
Dominant Firm ◽  
Dominant Position ◽  
Food Market ◽  
Oligopoly Competition ◽  
The Impact

Oligopoly can be defined as a market model of the imperfect competition type, assuming the existence of only a few companies in a sector or industry, from which at least some have a significant market share and can therefore influence the production prices in the market. Many models of oligopoly that differ from one another mostly in the nature of the competitive companies’ behaviour can be found through the study of oligopolistic structures. Some models describe only the behaviour of two companies in the monitored market (duopoly), others describe several companies of the same power (cartel), still others assume that one of the companies has a dominant position in the market, etc. The text of this article deals with oligopolistic competition in the food market in the terms of the behaviour of grocers and with the impact of this competition upon the market competition in the sector. First, it mentions the agreements on common cooperation and procedure, when cartel market structure originates. It also analyzes the examples of behaviour of oligopoly with a dominant firm on the market with products in the food sector, with the goal of detecting whether the market with these products is significantly influenced by the oligopolistic behaviour of companies.  

scholarly journals How Do Women Overcome Gender Inequality by Forming Small-Scale Cooperatives? The Case of the Agricultural Sector in Uganda

2021 ◽  
Vol 13 (4) ◽  
pp. 1797
Author(s):  
Amber Theeuwen ◽  
Valérie Duplat ◽  
Christopher Wickert ◽  
Brian Tjemkes
Keyword(s):  
Developing Countries ◽  
Gender Equality ◽  
Gender Inequality ◽  
Family Business ◽  
Agricultural Sector ◽  
Economic Benefits ◽  
Policy Implications ◽  
Small Scale ◽  
Business Relationships ◽  
Female Farmers

In Uganda, the agricultural sector contributes substantially to gross domestic product. Although the involvement of Ugandan women in this sector is extensive, female farmers face significant obstacles, caused by gendering that impedes their ability to expand their family business and to generate incomes. Gender refers to social or cultural categories by which women–men relationships are conceived. In this study, we aim to investigate how gendering influences the development of business relationships in the Ugandan agricultural sector. To do so, we employed a qualitative–inductive methodology to collect unique data on the rice and cassava sectors. Our findings reveal at first that, in the agricultural sector in Uganda, inter-organization business relationships (i.e., between non-family actors) are mostly developed by and between men, whereas intra-organization business relationships with family members are mostly developed by women. We learn that gendering impedes women from developing inter-organization business relationships. Impediments for female farmers include their restricted mobility, the lack of trust by men, their limited freedom in communication, household duties, and responsibilities for farming activities up until sales. Our findings also reveal that these impediments to developing inter-organization business relationships prevent female farmers from being empowered and from attainting economic benefits for the family business. In this context, the results of our study show that grouping in small-scale cooperatives offers female farmers an opportunity to overcome gender inequality and to become economically emancipated. Thanks to these cooperatives, women can develop inter-organization relationships with men and other women and gain easier access to financial resources. Small-scale cooperatives can alter gendering in the long run, in favor of more gender equality and less marginalization of women. Our study responds to calls for more research on the informal economy in developing countries and brings further understanding to the effect of gendering in the Ugandan agricultural sector. We propose a theoretical framework with eight propositions bridging gendering, business relationship development, and empowerment and economic benefits. Our framework serves as a springboard for policy implications aimed at fostering gender equality in informal sectors in developing countries.

Wealth and governance in unstable states : South Africa as a context for Mancur Olson's theory of collective action

2016 ◽  
Author(s):  
◽  
Pamela E. Kelrick
Keyword(s):  
South Africa ◽  
Developing Countries ◽  
Collective Action ◽  
Temporal Dynamics ◽  
Generalized Additive Models ◽  
Political Stability ◽  
Developed Countries ◽  
Additive Models ◽  
Policy Implications ◽  
Empirical Analyses

[ACCESS RESTRICTED TO THE UNIVERSITY OF MISSOURI AT AUTHOR'S REQUEST.] Mancur Olson's theory of collective action has primarily been construed and applied to developed countries with formal economies and (generally) socio-political stability. Yet, he asserted that his theory of collective action would apply in developing countries, even those which are far less stable. This study examined Olson's assertion that collective action applies in developing countries, using South Africa as a case study. The empirical analyses included canonical correlation analysis and generalized additive models, using attribute, spatial, and temporal data to understand the spatial and temporal dynamics between wealth and governance in South Africa. Geographic clustering by race and economic class remains persistent despite democratic reforms and improved governance engagement. In addition, findings of the empirical analyses were used to evaluate Olson's theory of collective action and frame the policy implications. Collective action is consistent with findings, but, in the context of developing countries, ought to include more prominent considerations of path dependency, increasing returns, and historical institutionalism.

Financial literacy and its determinants: the case of rural farm households in Ghana

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martinson Ankrah Twumasi ◽  
Yuansheng Jiang ◽  
Salina Adhikari ◽  
Caven Adu Gyamfi ◽  
Isaac Asare
Keyword(s):  
Developing Countries ◽  
Financial Literacy ◽  
Financial Education ◽  
Policy Implications ◽  
Farm Households ◽  
Community Group ◽  
Data Set ◽  
Content Type ◽  
Wide Range ◽  
Rural Dwellers

PurposeThis paper aims to examine the determinants of rural dwellers financial literacy in Ghana.Design/methodology/approachA cross-sectional primary data set was used to estimate the factors influencing rural farm households' financial literacy using the IV-Tobit model.FindingsThe findings reveal that most rural residents are financially illiterate. The econometrics model results depicted that respondents' socioeconomic and demographic characteristics such as gender, income, age and education significantly affect financial literacy. Again, respondents who are risk seekers and listen or watch education programs are more likely to be financially literate.Research limitations/implicationsThe paper examined the determinants of rural dwellers financial literacy in four regions in Ghana. Future research should consider all or many regions for an informed generalization of findings.Practical implicationsThis paper provides evidence that rural dwellers are financially illiterate and it would require the policymakers or non-governmental organizations (NGOs) to establish a village or community group that comprises a wide range of bankers and government officials to help rural dwellers acquire some financial skills. Also, the positive relationship between media (whether respondent watches or listens to educational programs) and financial literacy implies that policymakers should focus on improving individuals' financial knowledge through training programs and utilize the media as a channel to propagate financial education to the public.Originality/valueAlthough previous studies have examined the determinants of financial literacy, little is known in developing countries and, in particular, rural communities. The authors fill this gap by contributing to the scanty existing literature in developing countries in several ways. First, this is the first study to examine the financial literacy level of rural dwellers in Ghana. Second, to not undermine the credibility of the estimation results, this study addresses the potential endogeneity issue, which other researchers have not adequately recognized. Finally, the study expands the scant literature on the subject and provides critical policy implications that will help policymakers formulate financial market policies that will contribute to rural dwellers financial literacy enhancement.

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