Abstract

The objective of this paper is to study the interactions between export and domestic supply chains in developing countries, particularly in terms of food safety in domestic markets and the availability of supply. An Industrial Economics approach is developed to analyze the interdependent relationship that may exist between the export and domestic sectors of developing countries. We demonstrate that the export sectors are not always rivals of the domestic sectors and some public interventions that may tend to increase the knock-on effects associated with advanced export sectors can simultaneously satisfy food security and safety objectives. In particular, we show how a public intervention that imposes a minimum production quota on exporters for allocation to local markets can create positive externalities on the levels of domestic supply and food safety.

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