Evaluating Value Chain Development Programs: Assessing Effectiveness, Efficiency, and Equity Effects of Contract Choice

Research output: Chapter in Book/Report/Conference proceedingChapterAcademicpeer-review

Abstract

Provides insights regarding the possible procedures for assessing welfare, efficiency, and equity effects of value chain development (VCD) programs, taking advantage of available analytical tools derived from impact analysis, transaction cost theory, and contract choice approaches and briefly outlining the strengths and weaknesses of different measurement approaches for value chain appraisal based on empirical counterfactual analysis, dynamic value chain modeling, and systematic contract choice analysis of public-private partnerships. Three different—albeit complementary—approaches for evaluating VCD programs exist, focusing on (1) effectiveness in terms of net welfare effects, (2) efficiency through reduction of transaction costs, and (3) equity in contractual terms and distribution of risks for enforcing loyalty and trust. Each aspect requires a specific approach to guarantee the availability of relevant counterfactuals. Whereas effectiveness analysis can rely on empirical field data and common diff -in-diff procedures, efficiency analysis of transaction costs asks for a simulation modeling framework.
Original languageEnglish
Title of host publicationPoverty, Inequality, and Evaluation: Changing Perspectives
EditorsRay C. Rist, Frederic P. Martin, Ana Maria Fernandez
PublisherWorld Bank
Pages39-55
ISBN (Electronic)9781464807046
ISBN (Print)9781464807039
DOIs
Publication statusPublished - 2015

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