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Abstract

We applied a two-stage value chain model to investigate the effects of input application and occasional transaction costs on vegetable marketing chain efficiencies with a farm household-level data set. In the first stage, the production efficiencies with the combination of resource endowments, capital and managerial inputs, and production techniques were evaluated; then at the second stage, the marketing technical efficiencies were determined under the marketing value of the vegetables for three typical marketing chains in Nanjing area, P.R. China. The impacts of the transaction costs to the supply chain technical efficiency both at the production and marketing stages were examined by using Tobit model. Study showed that transaction costs significantly impacts on vegetable marketing chain efficiency in research area. Results also revealed that the impacts of transaction costs on marketing chain efficiency differ cross chains. This paper concluded with the reduction of the various types of transaction costs incurred in the vegetable marketing chains as managerial implementations for technical efficiency improvement and farmers' income increasing.

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