The hold-up problem in China's broiler industry: Empirical evidence from Jiangsu Province,Canadian Journal of Agricultural Economics

当前位置： X-MOL 学术 › Can. J. Agric. Econ. › 论文详情

Our official English website, www.x-mol.net, welcomes your feedback! (Note: you will need to create a separate account there.)

The hold-up problem in China's broiler industry: Empirical evidence from Jiangsu Province
Canadian Journal of Agricultural Economics ( IF 9 ) Pub Date : 2021-08-06 , DOI: 10.1111/cjag.12297
Shufen Tang ₁ , Yuqing Zheng ₂ , Taiping Li ₃ , Li Zhou ₃

Affiliation

Using detailed survey data on broiler growers, we tested for the existence of hold-up problems in the broiler industry in Jiangsu Province, China. We found that growers’ investments in chicken houses, which are assets with a high degree of physical and location specificity, increased along with the number of potential buyers (integrators) nearby. Such an effect was particularly strong in proximity to leading industry buyers. These results support the existence of hold-ups in the Chinese broiler industry. However, we failed to find evidence that a longer-term contract led to higher grower investments in chicken houses, possibly because of the lack of a minimum purchase guarantee in a typical contract. A key policy implication of this study is that subsidies to growers, from the government or buyers, can alleviate the underinvestment problem caused by hold-ups.

更新日期：2021-08-06

点击分享查看原文

点击收藏

阅读更多本刊最新论文

全部期刊列表>>