The Transition to Modern Agriculture: Contract Farming in Developing Economies

15 Pages Posted: 15 Apr 2020

See all articles by H. Holly Wang

H. Holly Wang

Purdue University - Department of Agricultural Economics

Yanbing Wang

Purdue University

Michael Delgado

Purdue University - College of Agriculture

Date Written: October 2014

Abstract

Recent years have seen considerable interest in the impact of contract farming on farmers in developing countries, motivated out of belief that contract farming spurs transition to modern agriculture. In this article, we provide a thorough review of the empirical literature on contract farming in both developed and developing countries, using China as a special case of the latter. We pay careful attention to broad implications of this research for economic development. We first find empirical studies consistently support the positive contribution of contract farming to production and supply chain efficiency. We also find that most empirical studies identify a positive and significant effect of contract farming on farmer welfare, yet are often unable to reach consistent conclusions as to significant correlates of contract participation.

Suggested Citation

Wang, H. Holly and Wang, Yanbing and Delgado, Michael, The Transition to Modern Agriculture: Contract Farming in Developing Economies (October 2014). American Journal of Agricultural Economics, Vol. 96, Issue 5, pp. 1257-1271, 2014, Available at SSRN: https://ssrn.com/abstract=3574189 or http://dx.doi.org/10.1093/ajae/aau036

H. Holly Wang (Contact Author)

Purdue University - Department of Agricultural Economics

West Lafayette, IN 47907-1145
United States

Yanbing Wang

Purdue University

Michael Delgado

Purdue University - College of Agriculture ( email )

United States

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