Using the general equilibrium framework and the theory of finite change, the paper investigates the emergence and consequences of contract farming as a new subsector of agriculture in a small open developing economy. In this paper, we look at how a foreign contract farming subsector that makes money from crops enters a country's agricultural sector. For entry, the cash crop must be significantly more expensive than the food crop that is currently being grown in the country which raises overall economic welfare may result in a more skewed distribution of income decreases domestic food production, resulting in an increase in food imports and food insecurity. As a result, may imply a compromise between growth and inequality.
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Journal of Global Economics received 1931 citations as per Google Scholar report
