UP- AND DOWNSTREAM RESTRUCTURING, FOREIGN DIRECT INVESTMENT, AND HOLD- UP PROBLEMS IN AGRICULTURAL TRANSITION

Vista sencilla de ítem
dc.creatorGow, Hamish R.
dc.creatorSwinnen, Johan F.M.
dc.date2017-04-01T17:29:09Z
dc.date.accessioned2026-07-09T04:14:53Z
dc.descriptionReform in the transitional economies can be characterized by large falls in agricultural output and by strong decapitalization of the agricultural production system. A key factor has been the disruption caused by the breakup of the pre- reform, vertically integrated, centrally planned, contracting system within the agri- food supply chain. This paper analyses how restructuring in the up- and downstream levels of the agrifood chain is affecting the production level, particularly the impacts of hold-up problems usually seen as excessively long delays in the payment for delivered product. Standard institutional solutions used to overcome hold- up problems, including supply contracting, cooperatives and vertical integration, have problems as short- to- medium term solutions. Empirical evidence indicates that FDI in the processing level can solve these hold- up problems, as well as produce important positive spillover effects within the sector and across adjacent sectors. Empirical observations indicate strong output, yield, and investment responses when hold- up problems are solved. This suggests that solving these problems should be a priority for stimulating growth, efficiency and profitability in Central and Eastern European agriculture.
dc.identifierdoi:10.22004/ag.econ.31867
dc.identifierhttps://ageconsearch.umn.edu/record/31867/files/prg-wp12.pdf
dc.identifierhttp://ageconsearch.umn.edu/record/31867
dc.identifier.urihttp://hdl.handle.net/123456789/547036
dc.languageeng
dc.publisher
dc.sourcehttp://ageconsearch.umn.edu/record/31867
dc.titleUP- AND DOWNSTREAM RESTRUCTURING, FOREIGN DIRECT INVESTMENT, AND HOLD- UP PROBLEMS IN AGRICULTURAL TRANSITION
dc.typeText

Archivos

Colecciones

University of Minnesota