1 Department of Economics, Faculty of Social Sciences, Københavns Universitet2 Økonomisk Institut, Department of Economics, Faculty of Social Sciences, Københavns Universitet3 International Economics and Policy Unit, Institute of Food and Resource Economics, Faculty of Life Sciences, Københavns Universitet4 International Economics and Policy Unit, Institute of Food and Resource Economics, Faculty of Life Sciences, Københavns Universitet
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.
Journal of Development Studies, 2014, Vol 50, Issue 7, p. 949-961