IDEAS home Printed from https://ideas.repec.org/a/asi/ajosrd/v10y2020i1p68-80id1962.html
   My bibliography  Save this article

Transaction Cost, Price Risk Perspective and Marketing Channel Decision of Small-Scale Chili Farmers in Tra Vinh Province, Vietnam

Author

Listed:
  • Pham Quoc Hung
  • Huynh Viet Khai

Abstract

The aim of this study is to determine the marketing channel and the factors affecting farmer’s selection of a distribution channel of chili produced in Tra Vinh province, Vietnam. With primary data of 193 chili farmers, the study based on the theory of transaction cost economics to estimate the determinants of marketing channels using the approach of the Probit model. The results showed that the marketing choice decision of chili farmers was affected by transaction costs, price risk attitude and farmers’ characteristics. Cooperatives mainly used seedling supply as an interlocked exchange to encourage farmers to remain in the cooperative channel. The finding also revealed that cooperative channel was not just the preferred channel when farmers were confronted with selling pressure due to the perishable nature of the chili, but also was a safe channel for more risk-averse farmers.

Suggested Citation

  • Pham Quoc Hung & Huynh Viet Khai, 2020. "Transaction Cost, Price Risk Perspective and Marketing Channel Decision of Small-Scale Chili Farmers in Tra Vinh Province, Vietnam," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 10(1), pages 68-80.
    • Handle: RePEc:asi:ajosrd:v:10:y:2020:i:1:p:68-80:id:1962
    as

    Download full text from publisher

    File URL: https://archive.aessweb.com/index.php/5005/article/view/1962/3101
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:asi:ajosrd:v:10:y:2020:i:1:p:68-80:id:1962. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Robert Allen (email available below). General contact details of provider: https://archive.aessweb.com/index.php/5005/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.