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

TY - JOUR

T1 - Governance Strategies and Welfare Effects: Vertical Integration and Contracts in the Catfish Sector in Vietnam

AU - Trifkovic, Neda

PY - 2014/7

Y1 - 2014/7

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.

U2 - 10.1080/00220388.2014.903245

DO - 10.1080/00220388.2014.903245

M3 - Journal article

SN - 0022-0388

VL - 50

SP - 949

EP - 961

JO - Journal of Development Studies

JF - Journal of Development Studies

IS - 7

ER -