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Impact of Political Connection on Farming Households’ Performance of Tea Production in Vietnam

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  • Nguyen To-The
  • Quoc Tran-Nam

Abstract

Purpose- This paper aims to investigate the impacts of political connections on farming households’ performance, especially in tea production.Methodology/Approach- The Box-Cox methodology is applied using the primary data surveyed on 244 tea farming households in Vietnam.Findings- The findings show the significant role of political connection on improving farming households’ income, particularly to members of the Communist Party, Youth Union and Farmer’s Union. However, the interaction effects of Farmer’s Union, Youth Union, Veteran’s Union and Communist Party with land has negatively significant impact on farming household income.Practical Implications- The evidences point out the capacity of improving tea producers’ income could be really potential implying most of existing related policies which should be adjusted.Originality/Value- This is the first research examining the impact of political connection on agricultural performance, especially in tea production. The impacts are estimated in de-tail; such as participating more on Veteran’s, Farmer’s, Youth Union and Communist Party may reduce time on cultivating; as a result, cultivated land could be reduced. Basing on these findings, we also suggest some appropriate policy implications related to the issue how to improve income of tea production households.

Suggested Citation

  • Nguyen To-The & Quoc Tran-Nam, 2015. "Impact of Political Connection on Farming Households’ Performance of Tea Production in Vietnam," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 7(12), pages 107-107, November.
    • Handle: RePEc:ibn:jasjnl:v:7:y:2015:i:12:p:107
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    References listed on IDEAS

    as
    1. Klaus Deininger & Songqing Jin, 2008. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 67-101, February.
    2. Claessens, Stijn & Feijen, Erik & Laeven, Luc, 2008. "Political connections and preferential access to finance: The role of campaign contributions," Journal of Financial Economics, Elsevier, vol. 88(3), pages 554-580, June.
    3. Chen, Gongmeng & Firth, Michael & Xu, Liping, 2009. "Does the type of ownership control matter? Evidence from China's listed companies," Journal of Banking & Finance, Elsevier, vol. 33(1), pages 171-181, January.
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    Cited by:

    1. Chinh Hoang-Duc & Hang Nguyen-Thu & Tuan Nguyen-Anh & Hiep Tran-Duc & Linh Nguyen-Thi-Thuy & Phuong Do-Hoang & Nguyen To-The & Vuong Vu-Tien & Huong Nguyen-Thi-Lan, 2024. "Governmental support and multidimensional poverty alleviation: efficiency assessment in rural areas of Vietnam," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 22(4), pages 999-1038, December.

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    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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