Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam

TY - UNPB

T1 - Governance Strategies and Welfare Effects

T2 - Vertical Integration and Contracts in the Catfish Sector in Vietnam

AU - Trifkovic, Neda

N1 - JEL codes: D02, D31, O17, L14, L24

PY - 2013/11

Y1 - 2013/11

N2 - Using an original dataset from the Vietnamese catfish sector, we study the impact of vertical coordination options on household welfare and the implications of different stages of vertical coordination for the success of the whole sector. The welfare gain from contract farming and employment on processor-owned estate farms is estimated using a maximum simulated likelihood estimator. Our results show positive welfare effects from participating in contract farming, but not from employment on processor-owned estate farms. The results imply that contract farming presents opportunities for economic growth, but additional effort is required to make the contracts more accessible to smallholders.

AB - Using an original dataset from the Vietnamese catfish sector, we study the impact of vertical coordination options on household welfare and the implications of different stages of vertical coordination for the success of the whole sector. The welfare gain from contract farming and employment on processor-owned estate farms is estimated using a maximum simulated likelihood estimator. Our results show positive welfare effects from participating in contract farming, but not from employment on processor-owned estate farms. The results imply that contract farming presents opportunities for economic growth, but additional effort is required to make the contracts more accessible to smallholders.

KW - Faculty of Social Sciences

KW - vertical coordination

KW - catfish

KW - maximum simulated likelihood

KW - agri-food transformation

KW - Vietnam

M3 - Working paper

T3 - IFRO Working Paper

BT - Governance Strategies and Welfare Effects

PB - Department of Food and Resource Economics, University of Copenhagen

CY - Frederiksberg

ER -