Contract farming and rural transformation: Evidence from a field experiment in Benin

Aminou Arouna, Jeffrey D. Michler, Jourdain C. Lokossou

Research output: Contribution to journalArticlepeer-review

9 Scopus citations

Abstract

Contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. Yet, there is a lack of consensus on its ability to spur structural transformation in rural economies. We present results from a field experiment on contract farming for rice production in Benin. While all contracts have positive effects on welfare and productivity measures, we find that the simplest contract has impacts nearly as large as contracts with additional attributes. This suggests that once price risk is resolved through the offer of a fixed-price contract, farmers are able to address other constraints on their own.

Original languageEnglish (US)
Article number102626
JournalJournal of Development Economics
Volume151
DOIs
StatePublished - Jun 2021
Externally publishedYes

Keywords

  • Contract farming
  • RCT
  • Rice
  • Structural transformation
  • Sub-Saharan Africa

ASJC Scopus subject areas

  • Development
  • Economics and Econometrics

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