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Vandemoortele, Thijs
Rozelle, Scott
Swinnen, Johan F.M.
Xiang, Tao
Year of Publication: 
Series/Report no.: 
LICOS Discussion Paper 246
This paper develops a firmal theory of the endogenous process of the introduction of high quality products in developing countries. Initial differences in income and capital and transaction costs are shown to affect the emergence of and the size of the high quality economy. Initial differences in the production structure and the nature of transaction costs 'C as well as the possibility of contracting between producers and processors 'C are shown to detfirmine which producers are included in the high quality economy, and which not.
Document Type: 
Working Paper

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