Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/74997 
Year of Publication: 
2007
Series/Report no.: 
LICOS Discussion Paper No. 184
Publisher: 
Katholieke Universiteit Leuven, LICOS Centre for Institutions and Economic Performance, Leuven
Abstract: 
Vertical coordination has grown strongly in global supply chains. Local suppliers in developing countries engage in complex contracting with companies selling into high-income markets - either domestically or internationally. These contracts not only specify conditions for delivery and production processes, but also include the provision of inputs, technology, management advice etc. This paper analyzes how weak contract enforcement institutions and imperfect factor markets are affecting vertical coordination in development, and what the implications are for income creation and rent distribution.
Subjects: 
Vertical coordination
contract enforcement
development
rent distribution
JEL: 
C78
D23
O12
Q12
Document Type: 
Working Paper

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