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Potential efficiency gains in the Fiji sugar industry: the performance payment system

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Lal, Padma

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Crawford School of Public Policy, The Australian National University
Asia Pacific Press

Abstract

This article assesses the magnitude of expected financial gains and the nature of incentives that a performance payment based contractual system may offer in a segmented sugar industry such as Fiji?s. A performance payment system (PPS), such as the Atherton system, could give all industry stakeholders incentives to improve performance. However, in the light of operational issues, a grower-miller based PPS may be more practical. Some loss of static efficiency may occur in this second-best option but, given the gravity of industry inefficiency in Fiji, a contractual agreement to improve the performance of all parties is urgently needed.

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http://hdl.handle.net/1885/157829

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Pacific Economic Bulletin (1991-2010)

Source

Pacific Economic Bulletin, Vol. 21 , No. 2, 2006

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Journal article

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