Supplier dynamics in horticultural export chains – evidence from Ecuador Report as inadecuate

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In this paper we study the dynamics of smallholder participation in export value chains focusing on the example of small-scale broccoli producers in the highlands of Ecuador. A double hurdle model and amulti-spell cox duration model are used to explain the extent of participation and the hazards of dropping out of the export chain. The empirical results suggest that small farmers´ withdrawal from the export sector is in fact accelerated by hold-ups experienced in the past and that family ties play an important role in farmers’ marketing decisions. Negative external shocks – such as the bankruptcy ofthe main buyer in our case study – represent a major threat towards the sustainability of smallholder farmer inclusion in high-value chains, because farmer organizations often possess low resilience towards such events.

Keywords: Horticultural export chains ; small farmers ; duration model ; double hurdle model ; transaction risks

Subject(s): Agribusiness

Consumer/Household Economics

Risk and Uncertainty

Issue Date: 2014-10

Publication Type: Working or Discussion Paper

DOI and Other Identifiers: ISSN (2192-3248) (Other)

PURL Identifier:

Total Pages: 28

JEL Codes: D23; D81; Q12

Series Statement: GlobalFood Discussion Papers


Record appears in: Georg-August-Universitaet Goettingen > GlobalFood Discussion Papers

Author: Romero, Cristina ; Wollni, Meike


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