Effect of contract farming on productivity and income of small holders: The case of tea production in north-western Vietnam
This paper examines potential of contract farming as a rural development tool by revealing its effect on productivity and income of small holders in tea production in north-western Vietnam. In the present research, three economic analyses are applied. First, the technical efficiency of tea production is estimated by using stochastic frontier model. The results show that contract farming achieved significantly higher technical efficiency compared to non-contract farming. Second, logit model is investigated to determine the influential socio-economic characteristics of households for contract participation. The model indicates that social relationship of households, such as the membership in the communist party, play an important role in contract participation with 73% correct prediction. Finally, the impact of contract participation on income is estimated by applying Propensity Score Matching. A significant effect of contract participation on income by 8,000 VND daily per capita can be observed.
|Date of creation:||2009|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
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.:
- Bharat Ramaswami & Pratap Singh Birthal & P.K. Joshi, 2005.
"Efficiency and distribution in contract farming:The case of Indian poultry growers,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
05-01, Indian Statistical Institute, New Delhi, India.
- Ramaswami, Bharat & Birthal, Pratap Singh & Joshi, P.K., 2006. "Efficiency and distribution in contract farming: the case of Indian poultry growers," MTID discussion papers 91, International Food Policy Research Institute (IFPRI).
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
- 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).
- Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009. "Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China," World Development, Elsevier, vol. 37(11), pages 1781-1790, November.
- Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
- Warning, Matthew & Key, Nigel, 2002. "The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal," World Development, Elsevier, vol. 30(2), pages 255-263, February.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Minot, Nicholas, 1986. "Contract Farming and Its Effect on Small Farmers in Less Developed Countries," Food Security International Development Working Papers 54740, Michigan State University, Department of Agricultural, Food, and Resource Economics.
- Sharma, Manohar, 2000. "Microfinance," MP05 briefs 0, International Food Policy Research Institute (IFPRI).
- Bravo-Ureta, Boris E. & Evenson, Robert E., 1994.
"Efficiency in agricultural production: the case of peasant farmers in eastern Paraguay,"
Agricultural Economics of Agricultural Economists,
International Association of Agricultural Economists, vol. 10(1), January.
- Bravo-Ureta, Boris E. & Evenson, Robert E., 1994. "Efficiency in agricultural production: The case of peasant farmers in eastern Paraguay," Agricultural Economics, Blackwell, vol. 10(1), pages 27-37, January.
- Singh, Sukhpal, 2002. "Contracting Out Solutions: Political Economy of Contract Farming in the Indian Punjab," World Development, Elsevier, vol. 30(9), pages 1621-1638, September.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae09:51681. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.