Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam
AbstractUsing an original dataset from the Vietnamese catfish sector, we study the impact of vertical coordination options on household welfare and the implications of different stages of vertical coordination for the success of the whole sector. The welfare gain from contract farming and employment on processor-owned estate farms is estimated using a maximum simulated likelihood estimator. Our results show positive welfare effects from participating in contract farming, but not from employment on processor-owned estate farms. The results imply that contract farming presents opportunities for economic growth, but additional effort is required to make the contracts more accessible to smallholders.
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 University of Copenhagen, Department of Food and Resource Economics in its series IFRO Working Paper with number 2013/20.
Length: 36 pages
Date of creation: Oct 2013
Date of revision:
vertical coordination; catfish; maximum simulated likelihood; agri-food transformation; Vietnam;
Find related papers by JEL classification:
- D02 - Microeconomics - - General - - - Institutions: Design, Formation, and Operations
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- O17 - Economic Development, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
- L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
This paper has been announced in the following NEP Reports:
- NEP-AGR-2013-11-14 (Agricultural Economics)
- NEP-ALL-2013-11-14 (All new papers)
- NEP-FDG-2013-11-14 (Financial Development & Growth)
- NEP-SEA-2013-11-14 (South East Asia)
- NEP-TRA-2013-11-14 (Transition Economics)
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.:
- Chen, Shaohua & Ravallion, Martin, 2008.
"The developing world is poorer than we thought, but no less successful in the fight against poverty,"
Policy Research Working Paper Series
4703, The World Bank.
- Shaohua Chen & Martin Ravallion, 2010. "The Developing World Is Poorer Than We Thought, but No Less Successful in the Fight Against Poverty," The Quarterly Journal of Economics, MIT Press, vol. 125(4), pages 1577-1625, November.
- Miet Maertens & Johan F.M. Swinnen, 2006.
"Trade, Standards, and Poverty: Evidence from Senegal,"
LICOS Discussion Papers
17706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Maertens, Miet & Swinnen, Johan F.M., 2009. "Trade, Standards, and Poverty: Evidence from Senegal," World Development, Elsevier, vol. 37(1), pages 161-178, January.
- Maertens, Miet & Swinnen, Johan F.M., 2007. "Trade, Standards and Poverty. Evidence from Senegal," 106th Seminar, October 25-27, 2007, Montpellier, France 7924, European Association of Agricultural Economists.
- Vo Loc & Simon Bush & Le Sinh & Nguyen Khiem, 2010. "High and low value fish chains in the Mekong Delta: challenges for livelihoods and governance," Environment, Development and Sustainability, Springer, vol. 12(6), pages 889-908, December.
- Ravallion, Martin & van de Walle, Dominique, 2008.
"Does rising landlessness signal success or failure for Vietnam's agrarian transition?,"
Journal of Development Economics,
Elsevier, vol. 87(2), pages 191-209, October.
- Ravallion, Martin & van de Walle, Dominique, 2006. "Does rising landlessness signal success or failure for Vietnam's agrarian transition?," Policy Research Working Paper Series 3871, The World Bank.
- Partha Deb & Pravin K. Trivedi, 2006. "Specification and simulated likelihood estimation of a non-normal treatment-outcome model with selection: Application to health care utilization," Econometrics Journal, Royal Economic Society, vol. 9(2), pages 307-331, 07.
- Imbens, Guido & Wooldridge, Jeffrey M., 2009.
"Recent Developments in the Econometrics of Program Evaluation,"
3043416, Harvard University Department of Economics.
- Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
- Guido M. Imbens & Jeffrey M. Wooldridge, 2008. "Recent Developments in the Econometrics of Program Evaluation," NBER Working Papers 14251, National Bureau of Economic Research, Inc.
- Guido Imbens & Jeffrey Wooldridge, 2008. "Recent developments in the econometrics of program evaluation," CeMMAP working papers CWP24/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Imbens, Guido W. & Wooldridge, Jeffrey M., 2008. "Recent Developments in the Econometrics of Program Evaluation," IZA Discussion Papers 3640, Institute for the Study of Labor (IZA).
- Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2012. "Smallholder Participation in Contract Farming: Comparative Evidence from Five Countries," World Development, Elsevier, vol. 40(4), pages 715-730.
- Bellemare, Marc F., 2010.
"As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming,"
27259, University Library of Munich, Germany.
- Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
- Bellemare, Marc F., 2010. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," MPRA Paper 23638, University Library of Munich, Germany.
- Ravallion, Martin & Chen, Shaohua, 2005. "Hidden impact? Household saving in response to a poor-area development project," Journal of Public Economics, Elsevier, vol. 89(11-12), pages 2183-2204, December.
- Roy, Devesh & Thorat, Amit, 2008. "Success in High Value Horticultural Export Markets for the Small Farmers: The Case of Mahagrapes in India," World Development, Elsevier, vol. 36(10), pages 1874-1890, October.
- 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).
- Hans Binswanger, 1980. "Attitudes toward risk: Experimental measurement in rural india," Artefactual Field Experiments 00009, The Field Experiments Website.
- Foster, Andrew D & Rosenzweig, Mark R, 1995.
"Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture,"
Journal of Political Economy,
University of Chicago Press, vol. 103(6), pages 1176-1209, December.
- Mark Rosenzweig & Andrew D. Foster, . "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Home Pages _068, University of Pennsylvania.
- Swinnen, Johan F.M. & Maertens, Miet, 2006.
"Globalization, Privatization, and Vertical Coordination in Food Value Chains in Developing and Transition Countries,"
2006 Annual Meeting, August 12-18, 2006, Queensland, Australia
25626, International Association of Agricultural Economists.
- Johan F. M. Swinnen & Miet Maertens, 2007. "Globalization, privatization, and vertical coordination in food value chains in developing and transition countries," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 89-102, December.
- Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
- Gow, Hamish R & Swinnen, Johan F M, 1998. "Up- and Downstream Restructuring, Foreign Direct Investment, and Hold-Up Problems in Agricultural Transition," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(3), pages 331-50.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Geir Tveit).
If references are entirely missing, you can add them using this form.