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The impact of agricultural commercialisation on household welfare in rural Vietnam

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  • Cazzuffi, Chiara
  • McKay, Andy
  • Perge, Emilie

Abstract

Commercialisation by smallholder farmers has played a major role in agricultural development in many Asian countries, and while there are assumptions that this has led to welfare improvement, in fact there is relatively little evidence on this question. In this paper we use high quality panel data to examine the welfare impact of agricultural commercialisation in a leading Asian producer, Vietnam. We use the five-wave Vietnam Access to Resources Household Survey (VARHS) panel data set from 2008 to 16, three measures of household welfare and create commercialisation indexes in relation to all crops and to rice specifically. We find a significant positive relationship of commercialisation with household asset accumulation, but a negative association with consumption expenditure.

Suggested Citation

  • Cazzuffi, Chiara & McKay, Andy & Perge, Emilie, 2020. "The impact of agricultural commercialisation on household welfare in rural Vietnam," Food Policy, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:jfpoli:v:94:y:2020:i:c:s0306919219306335
    DOI: 10.1016/j.foodpol.2019.101811
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    5. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialization and asset growth for poverty reduction: Evidence from panel data for rural Vietnam," TVSEP Working Papers wp-032, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    6. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialisation, asset growth and poverty in rural Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 388-416, July.
    7. Nguyen Duc Kien & Truong Quang Dung & Dinh Thi Kim Oanh & Le Thanh An & Nguyen Cong Dinh & Nguyen Thai Phan & Le Thi Thanh Nga, 2023. "Climate‐resilient practices and welfare impacts on rice‐cultivating households in Vietnam: Does joint adoption of multiple practices matter?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(2), pages 263-284, April.
    8. Linh Khac Bui & Huyen Hoang, 2021. "Non-farm employment, food poverty and vulnerability in rural Vietnam," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7326-7357, May.
    9. Verena Preusse & Nils Nölke & Meike Wollni, 2024. "Urbanization and adoption of sustainable agricultural practices in the rural‐urban interface of Bangalore, India," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 72(2), pages 167-198, June.
    10. Ndip, Francis Ebai & Molua, Ernest L. & Mvodo, Meyo-Elise Stephanie & Nkendah, Robert & Djomo Choumbou, Raoul Fani & Tabetando, Rayner & Akem, Nina Fabinin, 2023. "Farmland Fragmentation, crop diversification and incomes in Cameroon, a Congo Basin country," Land Use Policy, Elsevier, vol. 130(C).
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    14. Irena Antošová & Naďa Hazuchová & Jana Stávková, 2021. "Income situation of agricultural households of EU countries," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(4), pages 121-128.
    15. Amrita Saha & Rachel Sabates-Wheeler & John Thompson, 2022. "Insights into smallholder capacity for agricultural commercialisation: Evidence from four African contexts," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1757-1802, August.
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    18. Zheng, Hongyun & Ma, Wanglin, 2023. "Impact of agricultural commercialization on dietary diversity and vulnerability to poverty: Insights from Chinese rural households," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 558-569.

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    More about this item

    Keywords

    Commercialisation; Smallholders; Rice; Vietnam; Panel data;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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