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.
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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)
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