Clemens Lutz - Academia.edu (original) (raw)

Papers by Clemens Lutz

Soil & Tillage Research, 1992

The objective of this paper is to analyse the relationship between perceived entry barriers and r... more The objective of this paper is to analyse the relationship between perceived entry barriers and real entry. Real entry rates are interpreted as an indicator for the dynamics in an industry. The major hypothesis of this paper is that important entry barriers restrict new entry. Real entry rates are provided by a starter ratio for different industrial sectors and provinces in the Netherlands. Firms were interviewed in December 2004 to obtain data about the perceived importance of a large number of entry barriers (structural as well as strategic). The most important barriers, perceived by firms, are related to acquiring sufficient sales volume and capital, financial risks, cost disadvantages, cost of capital, economies of scale and product differentiation. The data on perceived entry barriers and information about the attractiveness of the market, are used to explain real entry in the first six months of 2005. Generally, the results confirm the expected relationship between entry barriers and real entry. However, some barriers seem to influence the starter ratio more strongly. Remarkably, several of the most 'important' perceived barriers do not restrict real entry rates. This result contains an interesting lesson for policy makers. They should not address important barriers per se, but scrutinize the effects of barriers that seem to restrict real entry. For example, government regulations are not perceived as one of the most important entry barriers. Nevertheless, this barrier has a strong impact on starter ratios. This result justifies why the Dutch government scrutinizes the relevance of existing rules and regulations.

This paper analyses the direct impact of transport costs on the distribution of cereals in space ... more This paper analyses the direct impact of transport costs on the distribution of cereals in space and time in Burkina Faso. In the literature on the functioning of food markets in West Africa these costs are often perceived as a major constraint for food marketing and rural development in general. In this paper, we proceed in two steps. First, we develop a model for cereal markets in order to analyse arbitrage in space and time in Burkina Faso. Second, we apply the model to investigate the influence of transport costs on cereal trade. It is explored how changes in these costs influence cereal prices, consumption, sales, transport and storage in all regions of the country and during all periods of the year. Special attention is given to the influence of these changes in deficit regions and during the lean season. Since the introduction of Structural Adjustment Programmes in Africa, the role of national governments in the food market has been reduced considerably. A lively debate is ta...

Since the introduction of the Structural Adjustment Programmes in West Africa, the role of the na... more Since the introduction of the Structural Adjustment Programmes in West Africa, the role of the national governments has changed considerably. Prices are no longer controlled by the state and governments do no longer intervene as major marketing agents. It remains to be seen whether the free market system leads indeed to an efficient food allocation, especially in remote and less endowed regions. In this report a quantitative analysis is made of arbitrage in time and space. We pursue two objectives. First, a model is developed to simulate the interaction between the various agents on the market: producers, traders and consumers. Particular attention is given to 1) differences between perfect and monopolistic markets; 2) farmers' supply behaviour in various seasons, and 3) optimal traders' strategies. A stochastic, spatial equilibrium model is set up to analyse price formation and optimal supply, demand, transport and storage strategies by the market actors. 9.2.2 Estimating cereal supply functions for Burkina Faso 9.3 Review of the stochastic, multi-period, spatial equilibrium model 10

International Journal of Entrepreneurship and Small Business, 2006

The objective of this paper is to provide empirical evidence about the importance of barriers to ... more The objective of this paper is to provide empirical evidence about the importance of barriers to entry. In particular, the perceptions of firms are considered. Three questions are addressed: which entry-barriers are important in the perception of firms in the Dutch economy? Do these perceptions differ between sectors? Do these perceptions differ between small and large firms? It is shown that the procurement of a viable sales volume, access to capital and financial risk, are considered to be the major barriers. The ranking of the importance of specific barriers to entry coheres among the sectors under study. The most remarkable result is that the figures indicate that micro firms perceive lower barriers to entry than medium-sized and large firms.

This article analyses the spatial price differences in the rice market of the Mekong River Delta ... more This article analyses the spatial price differences in the rice market of the Mekong River Delta to assess the impact of the liberalisation policies on its functioning. The results of these policies carried out during the last two decades are impressive. The rice market system in the Delta is competitive. Price patterns strongly cohere and are integrated with the regulated export prices. However, price patterns in other regions and in particular in the North, are only weakly integrated with price patterns in the South. Private traders in the South satisfy local demand and deal with State Owned Enterprises (SOEs) involved in exports and transactions with the North. In the framework of the national food security policy, the state owned food companies subsidise transactions between the South and the North. Therefore, no profitable long distance trade can be established. Moreover, the state owned food companies acquire nearly all licences to export (quota). We conclude that, despite all...

Journal of Development Economics

This paper considers vertical price relationships between wholesalers and retailers on five local... more This paper considers vertical price relationships between wholesalers and retailers on five local maize markets in Benin. We show that the common stochastic trend and the long-run disequilibrium error must explicitly be considered to correctly interpret the restrictions on the error–correction structure in terms of economic power in the channel. Interesting differences between markets are found. In the two major towns, retailers play a more prominent role in the price formation process than generally assumed in the literature on development economics. In the two larger rural centers, however, wholesalers involved in arbitrage among urban markets do influence price formation.

Entrepreneurship, Competitiveness and Local Development, 2007

... SMEs, affect real entry? Some evidence from the Netherlands S. Gerhard Dijksta Ron Kemp Cleme... more ... SMEs, affect real entry? Some evidence from the Netherlands S. Gerhard Dijksta Ron Kemp Clemens Lutz Zoetermeer, January, 2006 ... Some evidence from the Netherlands S. Gerhard Dijkstra Faculty of Economics, University of Groningen, the Netherlands sgdijkstra@gmx.net ...

Applied Economics, 2015

ABSTRACT Most small businesses in the developing economies suffer from a lack of access to formal... more ABSTRACT Most small businesses in the developing economies suffer from a lack of access to formal external finance. One important alternative source of finance for these entrepreneurs is trade credit. Applying a unique data-set containing data on specific trade relations between rice wholesalers and rice retailers in Tanzania, we analyse the determinants of trade credit demand and supply in this market, using a simultaneous equation modelling approach. The analysis shows that while the demand for trade credit is primarily determined by the extent to which retailers need external funds, supply is mainly driven by wholesalers’ incentives to attract and keep clients. Moreover, wholesalers’ willingness to provide credit increases if they have better information about the possibility that the customer will fail to repay the credit.

SSRN Electronic Journal, 2000

This paper analyzes the determinants of trade credit demand and supply in the Tanzanian rice mark... more This paper analyzes the determinants of trade credit demand and supply in the Tanzanian rice market, using data from individual trade transactions between rice wholesalers and rice retailers. We use a structural modelling approach to disentangle the supply and demand effects that may drive the use of trade credit in this market. We find evidence that trade credit demand is determined primarily by the extent to which retailers need external shortterm funds to finance trade and business activities. With respect to trade credit supply, our analysis suggests that it is mainly determined by incentives wholesalers have to keep clients and/or attract new ones. Moreover, supply may be driven by the extent to which wholesalers have information about the default probability of their customers. Finally, both trade credit supply and demand are determined by transaction cost considerations.

The Economics of Transition, 2006

In the last decades Vietnam has become a major supplier in the world's rice market. This position... more In the last decades Vietnam has become a major supplier in the world's rice market. This position is the result of the policy reforms that have been implemented in the agricultural sector. This paper assesses the impact of the liberalization policies and focuses on the spatial price differences in the domestic rice market. The results show that price patterns correlate strongly in the Mekong River Delta. Even prices in other regions are integrated with price patterns in the South. Interestingly, private traders in the Mekong Delta are only indirectly responsible for the latter result. They satisfy local demand and deal with state-owned enterprises (SOEs). In the framework of the national food security policy, the state-owned food companies 'subsidize' transactions between the South and the North. Moreover, the state-owned food companies still dominate export transactions. The latter issues constitute two major queries for policy makers involved in the liberalization of the rice market, as further policy measures should not jeopardize the interests of domestic rice consumers.

Journal of Regional Science, 1999

Journal of Development Studies, 2012

We use primary survey data to analyse the relationship between trade credit and customer switchin... more We use primary survey data to analyse the relationship between trade credit and customer switching in the context of trade transactions between wholesalers and retailers in the Tanzanian rice market. Results reveal a negative relation of trade credit and customer switching, that is, trade credit acts as a switching barrier; retailers are reluctant to move to another supplier if they

Journal of African Economies, 2006

... Table 4 presents the results of Johansen's (2002) trace test. ... Consequently, we concl... more ... Table 4 presents the results of Johansen's (2002) trace test. ... Consequently, we conclude that at the end of the 1990s Kétou was no longer part of the price integrated market system inBenin. Of relevance here is the observation made by Adegbidi et al. ...

Journal of African Business, 2006

International Marketing Review, 2004

The article presents a qualitative model, derived from the transaction cost and resource dependen... more The article presents a qualitative model, derived from the transaction cost and resource dependence theory, to compare the business relationships in the marketing channels between footwear buyers in The Netherlands and Uganda, and their suppliers. The observed business relationships are used to design an export-marketing channel for Eritrean footwear manufacturers looking for new export market opportunities. The findings show that the design of the export marketing channels for Uganda and The Netherlands differs as a result of the transaction costs involved. Taking into account the weak resource base of the Eritrean manufacturers, we conclude that it may be easier for them to enter the Dutch market than the Ugandan market.

International Journal of Entrepreneurship and Small Business, 2009

ABSTRACT A large body of literature shows that immigrants are more entrepreneurial because they a... more ABSTRACT A large body of literature shows that immigrants are more entrepreneurial because they are able to use their network relationships. Allegedly, immigrant networks allow their members to access resources that are hard to get through formal channels. The findings of this study have put some nuances in this debate. In the perception of immigrant entrepreneurs, immigrant network relationships played only a minor role in their business success, i.e., in fostering the exchange of business information and resources among the Vietnamese and East African entrepreneurs in the Seattle area.