Rice market participation and channels of sale in rural Vietnam
This paper contributes to the existing literature on agricultural commercialisation by focussing on the channels through which households sell their crops, as well as considering the determinants of their participation behaviour. An important innovation of this paper is to look at both the type of purchaser households use (trader or other household) and the location of sale (farmgate or not). We study these issues for the case of Vietnam, which over time has achieved an impressive success in agricultural commercialisation, and in relation to rice, drawing on data from a detailed rural panel survey for 2006, 2008 and 2010. We find that household asset endowments and access to public goods such as transport infrastructure significantly increase the probability of selling rice. We also find that larger scale of production and low transport costs are significant determinants of the probability of using more established channels of sale, such as traders or enterprises. Wealthier farmers are more likely to sell via this channel, but not if the quantity they produce is large, which is consistent with their better ability to meet costs for reaching more remunerative marketing opportunities. With respect to location of sales, we find that wealthier households with access to phones and own means of transport, but also households located in areas where transport infrastructure is less developed, are less likely to sell at the farmgate.
|Date of creation:||Jun 2012|
|Contact details of provider:|| Web page: http://www.iaae-agecon.org/|
More information through EDIRC
References listed on IDEAS
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.:
- von Braun, Joachim, 1995. "Agricultural commercialization: impacts on income and nutrition and implications for policy," Food Policy, Elsevier, vol. 20(3), pages 187-202, June.
- Marcel Fafchamps & Ruth Vargas Hill, 2004.
"Selling at the farm-gate or travelling to market,"
CSAE Working Paper Series
2004-30, Centre for the Study of African Economies, University of Oxford.
- C. Peter Timmer, 1997. "Farmers and Markets: The Political Economy of New Paradigms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 621-627.
- Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
- Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
- Emily Ouma & John Jagwe & Gideon Aiko Obare & Steffen Abele, 2010. "Determinants of smallholder farmers' participation in banana markets in Central Africa: the role of transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 111-122, 03.
- Pingali, Prabhu L. & Rosegrant, Mark W., 1995. "Agricultural commercialization and diversification: processes and policies," Food Policy, Elsevier, vol. 20(3), pages 171-185, June.
- Ann Harrison, 2006.
"Globalization and Poverty,"
NBER Working Papers
12347, National Bureau of Economic Research, Inc.
- Heltberg, Rasmus & Tarp, Finn, 2001.
"Agricultural Supply Response and Poverty in Mozambique,"
WIDER Working Paper Series
114, World Institute for Development Economic Research (UNU-WIDER).
- Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
- Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
When requesting a correction, please mention this item's handle: RePEc:ags:iaae12:126566. 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.