Effect of contract farming on productivity and income of small holders: The case of tea production in north-western Vietnam
AbstractThis paper examines potential of contract farming as a rural development tool by revealing its effect on productivity and income of small holders in tea production in north-western Vietnam. In the present research, three economic analyses are applied. First, the technical efficiency of tea production is estimated by using stochastic frontier model. The results show that contract farming achieved significantly higher technical efficiency compared to non-contract farming. Second, logit model is investigated to determine the influential socio-economic characteristics of households for contract participation. The model indicates that social relationship of households, such as the membership in the communist party, play an important role in contract participation with 73% correct prediction. Finally, the impact of contract participation on income is estimated by applying Propensity Score Matching. A significant effect of contract participation on income by 8,000 VND daily per capita can be observed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51681.
Date of creation: 2009
Date of revision:
Contract farming; Tea; Vietnam; Community/Rural/Urban Development; Crop Production/Industries; Food Security and Poverty; Productivity Analysis; C21; D24; O12; Q12;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
- Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, vol. 10(1), pages 27-37, January.
- Kodde, David A & Palm, Franz C, 1986.
"Wald Criteria for Jointly Testing Equality and Inequality Restriction s,"
Econometric Society, vol. 54(5), pages 1243-48, September.
- Kodde, David A. & Palm, Franz C., 1986. "Wald criteria for jointly testing equality and inequality restrictions," Open Access publications from Maastricht University urn:nbn:nl:ui:27-5750, Maastricht University.
- Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009.
"Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China,"
Elsevier, vol. 37(11), pages 1781-1790, November.
- Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2007. "Impact of contract farming on income: Linking small farmers, packers, and supermarket in China," IFPRI discussion papers 742, International Food Policy Research Institute (IFPRI).
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Sharma, Manohar, 2000. "Microfinance," MP05 briefs 0, International Food Policy Research Institute (IFPRI).
- Ramaswami, Bharat & Birthal, Pratap Singh & Joshi, P.K., 2006.
"Efficiency and distribution in contract farming: the case of Indian poultry growers,"
MTID discussion papers
91, International Food Policy Research Institute (IFPRI).
- Bharat Ramaswami & Pratap Singh Birthal & P.K. Joshi, 2005. "Efficiency and distribution in contract farming:The case of Indian poultry growers," Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers 05-01, Indian Statistical Institute, New Delhi, India.
- Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," World Development, Elsevier, vol. 30(9), pages 1621-1638, September.
- Dufhues, Thomas & Buchenrieder, Gertrud & Quoc, Hoang Dinh & Munkung, Nuchanata, 2011. "Social capital and loan repayment performance in Southeast Asia," The Journal of Socio-Economics, Elsevier, vol. 40(5), pages 679-691.
- Thomas Dufhues & Gertrud Buchenrieder & Hoang Dinh Quoc, 2012. "Social capital and loan repayment performance in Northern Vietnam," Agricultural Economics, International Association of Agricultural Economists, vol. 43(3), pages 277-292, 05.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.