Financialization and Global Commodity Chains
Distributional Implications for Cotton in Sub-Saharan Africa
Bibliographic Data
| ID | 3885282 |
|---|---|
| Authors | Cornelia Staritz (0000-0003-1794-9784), Susan Newman (0000-0001-7220-4326), Bernhard Tröster (0000-0002-2658-9218), Leonhard Plank (0000-0002-4754-131X) |
| Year | 2018 |
| Volume | 49 |
| Issue | 3 |
| Pages | 815-842 |
| Publication date | 2018-05-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Development and Change (JOURNAL) |
| Journal identifiers | ISSN: 0012-155X • E-ISSN: 1467-7660 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/dech.12401 |
| OpenAlex | W2791971985 |
| Language | EN |
| Citations received | 14 |
| References cited | 27 |
Restructuring of global and local markets has led to an increased influence of commodity derivatives markets on commodity price setting. This has critical implications for price risks experienced by actors along commodity chains. Commodity derivatives markets have undergone significant changes that have been referred to as the 'financialization of commodities', which we define as an increase in trading activity by financial investors and the reorientation of business strategies by commodity trading houses towards risk management and financial activities. This article assesses how these global financialization processes affect commodity producers in low-income countries via the operational dynamics of global commodity chains and national market structures. It investigates how prices are set and transmitted and how risks are distributed and managed in the cotton sectors in Burkina Faso, Mozambique and Tanzania. It concludes that uneven exposure to price instability and access to price risk management have important distributional implications. Whilst international traders have the capacity to deal with price risks through hedging, in addition to expanding their profit possibilities through financial activities on derivatives markets, local actors in producing countries face the challenge of increased short-termism - albeit to different extents depending on national market structures - with limited access to risk management
Business · Commodity · Commodity chain · Commodity market · Derivatives market · Economics · Financial market · Financialization · Futures contract · Macroeconomics · Market economy · Restructuring · Agriculture, Land Use, Rural Development · Finance · Housing, Finance, and Neoliberalism
Global Commodity/Value Chains
Global Value Chains and Global Value Transfer
Large investments, small farmers
The criticality of lithium and the finance-sustainability nexus
The Commodities Fetish? Financialisation and Finance Capital in the US Oil Industry
Commodity traders in a storm
Price-Setting Power in Global Value Chains
Unprecedented but not Unpredictable
Disparate but not antagonistic
Peasant Resistance in Burkina Faso's Cotton Sector
Financialization of Non‐Financial Corporations
Entangling global chains of wealth and value through CSR-ization
The Financialization of Coffee, Cocoa and Cotton Value Chains
Taming Transaction Costs, Risk, and Uncertainty in Global Production and Financial Networks
Financialization and the World Economy
Market Threads
Global production systems and third world development
Free competition without sustainable development? Tanzanian cotton sector liberalisation, 1994/95 to 1997/98
The Growing Financialisation of Commodity Markets
Derivatives and Development
Sub‐Saharan African Cotton Policies in Retrospect
The limits to financialization
The Burkinabè Cotton Story 1992–2007
Introduction
Integrating Finance into Global Production Networks
Competition and Coordination in Liberalized African Cotton Market Systems
Troubled futures? The global food crisis and the politics of agricultural derivatives regulation
Global production networks and the analysis of economic development
From Futures Markets to the Farm Gate
Toward a Dynamic Theory of Global Production Networks
Cooperative Cotton Marketing, Liberalization and 'Civil Society' in Tanzania
Maximizing shareholder value
Financialization, distance and global food politics
| Unique citing works | 14 |
|---|---|
| Citations per year | 2,33 |
| Citation span | 2020 - 2026 (7) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 14 |