FINANCING OF AGRICULTURAL TERROIR PRODUCTS: THEORETICAL FOUNDATIONS AND CRITICAL REVIEW OF INTERNATIONAL LITERATURE
DOI:
https://doi.org/10.61421/IJSSMER.2026.4204Keywords:
Agricultural finance, Terroir products, Agricultural value chain finance, Financial intermediation, Financial inclusion, Territorial development, Collective organization, Agricultural risk managementAbstract
Financing constitutes a strategic lever for the development of agricultural products, and more specifically for terroir products, which are characterized by strong territorial specificity and differentiated added value. International economic literature has addressed agricultural financing through several theoretical frameworks: financial intermediation theory, information asymmetry theory, transaction cost theory, value chain theory, institutional economics, and territorial development approaches. This article provides a critical review of the main theoretical and empirical contributions concerning the financing mechanisms of agricultural and terroir products worldwide, highlighting the structural determinants of access to finance, financial innovations, and their implications for rural economies.
Downloads
References
• Akerlof, G. A. (1970). The market for “lemons”: Quality uncertainty and the market mechanism. Columbia University Press.
• Coase, R. H. (1937). The nature of the firm. Economica, 4(16), 386–405.
• North, D. C. (1990). Institutions, institutional change and economic performance. Cambridge University Press.
• Röttger, A. (2015). Agricultural finance for smallholder farmers (1st ed.). Cambridge University Press.
• Williamson, O. E. (1985). The economic institutions of capitalism: Firms, markets, relational contracting. Free Press.
• Barrett, C. B. (2008). Smallholder market participation: Concepts and evidence from eastern and southern Africa. Food Policy, 33(4), 299–317.
• Bijman, J., Muradian, R., & Schuurman, J. (2016). Agrifood cooperatives in global markets: Linking institutions, networks and cooperative performance. Springer.
• CGAP. (2020). Value chain finance: Beyond microfinance for rural and agricultural development. Consultative Group to Assist the Poor.
• Hazell, P. B., & Key, N. (2002). Methods for investigating the links between policy and technology: Lessons from agricultural research and extension evaluation. Agricultural Systems, 73(1), 35–56.
• Kirsten, J., & Sartorius, K. (2002). Linking agribusiness and small-scale farmers in developing countries: Is there a new role for contract farming? Development Southern Africa, 19(4), 503–529.
• López, R., & Valdivieso, J. (2016). Agricultural finance in developing countries: Evidence and implications for policy. Journal of International Development, 28(5), 713–729.
• Murray, W. E., & Overton, J. (2011). Value chain analysis and farmer organizational development. Journal of Agribusiness in Developing and Emerging Economies, 1(2), 116–134.
• Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393–410.
• Food and Agriculture Organization of the United Nations (FAO). (2025). How farmers’ access to finance boosts investment in agrifood systems. https://www.fao.org/investment-centre/latest/news/detail/how-farmers–access-to-finance-boosts-investment-in-agrifood-systems/en
• Organisation for Economic Co-operation and Development (OECD). (2021). Financing rural development. OECD Publishing.
• World Bank. (2022). Agricultural value chain finance: Tools and lessons. World Bank Group.
• Gonzalez, C., & Karlan, D. (2014). Impact of finance on agricultural productivity. Journal of Development Economics, 107, 83–101.
• Muritala, T. A., & Evans, O. (2019). Fintech and agricultural finance: Opportunities and challenges in rural markets. Journal of Rural Studies, 68, 112–121.
• Schmidt, T. (2017). Value chain financing for smallholders: Insights and evidence. Agricultural Finance Review, 77(4), 478–489.
• Bowen, S., & Mutersbaugh, T. (2014). Valuing local and traditional agricultural products in global markets: Terroir and territoriality. Journal of Rural Studies, 22(1), 167–178.
• Ollivier, G., & Corsi, S. (2012). Territorial products and local development: Strategy, quality and value chain. Policy Studies, 33(2), 101–117.
• Armendariz, B., & Morduch, J. (2010). The economics of microfinance (2nd ed.). MIT Press.
• Hazell, P., & Rahman, A. (2014). New directions for smallholder agriculture. IFPRI.
• Arrow, K. J. (1963). Uncertainty and the welfare economics of medical care. American Economic Review, 53(5), 941–973.
• Diamond, D. W. (1984). Financial intermediation and delegated monitoring. Review of Economic Studies, 51(3), 393–414.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Rachid Amiri

This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles published in International Journal of Social Science, Management and Economics Research are licensed under a Creative Commons Attribution 4.0 International License.