New Institutional Arrangements for Rural Development: The Case of Local Woolgrowers' Associations in the Transkei Area,South Africa |
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| Authors: | Marijke D'haese Guido Van Huylenbroeck Johann Kirsten Luc D'haese |
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| Affiliation: | 1. Ghent University, Department of Agricultural Economics , Coupure links 653, B-9000, Gent, Belgium;2. Department of Social Sciences, Development Economics Group , Wageningen University , The Netherlands;3. Ghent University, Department of Agricultural Economics , Coupure links 653, B-9000, Gent, Belgium;4. University of Pretoria, Department of Agricultural Economics, Extension and Rural Development , South Africa |
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| Abstract: | Until recently, smallholder farmers in the Transkei area had very limited access to a profitable market outlet for their wool. In response, the South African wool industry built shearing sheds, managed by a local association that sells directly to the brokers. This article investigates the effect of joint wool marketing through the shearing shed on the farmers' revenue from wool. A three-step regression model of the revenue from wool indicates that the farmers selling through the shearing shed obtain better financial results as compared to those who use alternative channels. This analysis shows how new institutional arrangements may contribute to economic development. |
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