The purpose of this study is to investigate the production and trade contracts now being tried at the grass-roots level in support of rural based industrialization. The points of reference in this investigation are historical explorations of the early stage of industrialization in Japan and field surveys of current developments in East Asia. Special attention is given to the conditions that allow the relational contracting system to become the dominant production organization over a vertically integrated system. The term relational contracting is used here to encompass the long-term, continuous contract relationships between small, rural-based manufacturers and traders or agents of large, urban-based firms, as well as similar contracts between rural-based manufacturers and their workers, which are enforced and maintained primarily by personal ties and community obligations. This contract mechanism is vital - it is the channel that conveys the demands of large markets, both foreign and domestic, to the small, isolated manufacturers in rural areas that would otherwise be subject to severe imperfections of market information. The findings clearly demonstrate that rural people in developing areas of Asia possess sufficient entrepreneurship - if they are not held back by undue regulation, taxation, and macroeconomic instability - to organize a network of relational contracts that link their production activities with reservoirs of national and international demand.
Detalhes
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Autor
Bhatt, V. V. Lane, David Jung-Hwan Lee Deqiang Liu Yujiro Hayami [editor} Motoshige Itoh BenjaJirapatpimol Toshihiko Kawagoe Masao Kikuchi Ak Ohno Keijiro Otsuka Masayuki Tanimoto Kazuo Wada
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Data do documento
1998/05/31
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TIpo de documento
Publicação
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No. do relatório
18348
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Nº do volume
1
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Total Volume(s)
1
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País
China, Filipinas Japão
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Região
Sul da Ásia, OTH, Leste Asiático e Pacífico
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Data de divulgação
2010/07/01
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Nome do documento
Toward the rural-based development of commerce and industry - selected experiences from East Asia
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Palavras-chave
relational contract;small and medium enterprise;vertical integration;public investment in infrastructure;industrial strategy;alternative mode;transaction cost;rural labor force;rural area;modern economic growth;factor market;social and institutional;demand for labor;moral hazard;agricultural labor force;alleviation of poverty;increase in land;agricultural water management;high growth rate;quality of product;Poverty & Inequality;rural household income;wealth of nation;source of employment;economic policy analysis;expansion of demand;urban informal sector;high birth rate;informal economic activity;production of commodity;coefficient of variation;world war ii;modern rice technology;economies of agglomeration;quality and quantity;division of labor;remote rural area;supply of materials;state trading enterprise;per capita income;incentives for management;process of modernization;brand name;indigenous economic development;
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