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Communities and Markets in Economic Development$
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Masahiko Aoki and Yujiro Hayami

Print publication date: 2001

Print ISBN-13: 9780199241019

Published to Oxford Scholarship Online: August 2004

DOI: 10.1093/0199241015.001.0001

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Market Integrators for Rural‐based Industrialization: The Case of the Hand‐Weaving Industry in Laos

Market Integrators for Rural‐based Industrialization: The Case of the Hand‐Weaving Industry in Laos

Chapter:
(p.153) 6 Market Integrators for Rural‐based Industrialization: The Case of the Hand‐Weaving Industry in Laos
Source:
Communities and Markets in Economic Development
Author(s):

Akihiko Ohno

Publisher:
Oxford University Press
DOI:10.1093/0199241015.003.0006

This chapter discusses how traders in Laos emerge as market integrators in the hand-weaving industry. It presents a profile of the Lao handloom industry, the marketing process and contractual arrangements in the weaving sector, case studies of master weavers, and case studies retailers. It argues that community relations facilitate market integration by deterring agents’ opportunism. This also ensures efficient transactions for the relational contracting system when combined with measures such as process-based trust and governance over the products.

Keywords:   traders, market integrators, Laos, hand weaving industry, contractual arrangements, community relations

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