Institutional change in value chains : evidence from tea in Nepal
Date
2015-10
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Publisher
Elsevier
Abstract
The impact of participation in global value chains is not uniform. In this case study of the Nepali tea value chain, the status of labor, factory, and informal institutions conditioned whether small-scale farmers benefitted from upgrading to organic production. Organic tea is sold relatively directly to small-scale retailers in developed countries. The value chain is buyer-driven, and conventional and organic threads are coordinated through spot and captive governance respectively. The institutional history of upgrading in Ilam, Nepal, highlights how institutional change unfolded around Organic initiatives. In reaction to shortcomings of the code of conduct (CoC) upgrading process and burgeoning markets, several factories investigated converting to organic production.
Description
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Journal Article (peer-reviewed)
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Keywords
DEVELOPMENT STRATEGY, VALUE CHAINS, LIVELIHOODS, CASE STUDIES, TEA, ORGANIC FARMING, LOCAL LEVEL, INSTITUTIONAL FRAMEWORK, ORGANIZATIONAL CHANGE, OPERATIONS RESEARCH, ECONOMIC THEORY, SMALLHOLDERS
Citation
Mohan, S. (2016). Institutional Change in Value Chains: Evidence from Tea in Nepal. World Development, 78: 52-65. http://dx.doi.org/10.1016/j.worlddev.2015.10.004