By Takahiro Fukunishi (eds.)
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Extra resources for Delivering Sustainable Growth in Africa: African Farmers and Firms in a Changing World
More broadly, both types of contracting arrangements are forms of non-equity modes of production (UNCTAD, 2011). The benefits as well as costs for producers participating in one GVC as compared to another are essentially contingent on how the integration process of producers with this type of trade is managed. This is related to the associated governance structures of GVCs, that is, the contractual linkages that exist between independent firms or farms. These internal governance structures between firms may in turn be affected and influenced by external governance structures determined by governments.
Since contract farming is a form of vertical coordination this means attention must be paid to how global agribusiness accesses smallholder supply and the terms of sale. Attracting the modern export, such as RMG, requires ensuring the 28 Global Value Chains right incentives are in place at the time of relocation, but also overtime so as to ensure that upgrading processes, such as learning by doing and therefore movement up the value chain, actually take place. A key feature raised in the GVC literature, which we discuss in more detail in the following sections, is the way in which the relative position of firms and the governance structures within which they trade conditions their potential upgrading options, with some types of governance facilitating rapid producer upgrading and others hindering this process.
50, No. 3, pp. 643–65. African Development Bank (2007) African Development Report 2007, New York; Oxford University Press. Arbache, Jorge, Delfin S. , Policy Research Working Paper 4519, Washington, DC: World Bank. Auty, Richard M. and Alan H. Gelb (2001) ‘Political Economy of ResourceAbundant States’, in Richard M. ), Resource Abundance and Economic Development, New York: Oxford University Press. Berman, Nicolas, and Jérôme Héricourt (2010) ‘Financial factors and the margins of trade: Evidence from cross-country firm-level data’, Journal of Development Economics, Vol.