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Food Security, Energy Equity, and the Global Commons: a Computable Village Model applied to sub-Saharan Africa

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  • Winter, Etti Maria
  • Fasse, Anja

Abstract

This 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.

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Bibliographic Info

Paper provided by International Association of Agricultural Economists in its series 2009 Conference, August 16-22, 2009, Beijing, China with number 51683.

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Date of creation: 2009
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Handle: RePEc:ags:iaae09:51683

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Keywords: Crop Production/Industries; Productivity Analysis; Contract farming; Tea; Vietnam;

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  1. de Janvry, Alain & Fafchamps, Marcel & Sadoulet, Elisabeth, 1991. "Peasant Household Behaviour with Missing Markets: Some Paradoxes Explained," Economic Journal, Royal Economic Society, vol. 101(409), pages 1400-417, November.
  2. Angelsen, Arild, 1999. "Agricultural expansion and deforestation: modelling the impact of population, market forces and property rights," Journal of Development Economics, Elsevier, vol. 58(1), pages 185-218, February.
  3. James Brander & M. Scott Taylor, 1997. "International Trade Between Consumer and Conservationist Countries," NBER Working Papers 6006, National Bureau of Economic Research, Inc.
  4. David L. Ryan & Terence J. Wales, 1999. "Flexible And Semiflexible Consumer Demands With Quadratic Engel Curves," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 277-287, May.
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