Institutional incentives and economic aspects of industrial relationships in the Italian agricultural sector

Abstract

Policy interventions and private initiatives undertaken in the Italian agricultural sector have registered varying degrees
of impact at the local level, due to the diversity of regional characteristics. The research paper aims to conceptualize
the agricultural value-chain model and sheds light on the institutional incentives for product and supply organization in
one integrated and interrelated process. The economic efficiency and competitiveness of strategic partnerships in the
form of producer organizations, associations and cooperatives will be analysed. The first part of the paper investigates
the theoretical and methodological framework for measuring the institutional effects on contract arrangements. The
second part is devoted to assessing the structure of the value-chains in the agricultural sector in Italy and to
operationalizing the concept of the behavioural model of strategic participants. The third part presents results of
research, utilizing the applied econometric approach based on the stochastic frontier production models.