The impact of agricultural commercialisation on household welfare in rural Vietnam. (July 2020)

• Record Type: Journal Article
• Authors: Cazzuffi, Chiara; McKay, Andy; Perge, Emilie
• Is Part Of: Food policy. Volume 94(2020)
• Publication Date: 2020-07
• Subjects: O12 -- O13 -- Q12 -- Q13; Commercialisation -- Smallholders -- Rice -- Vietnam -- Panel data; Food supply -- Periodicals; Food security -- Periodicals; Food -- Quality -- Periodicals; Food Supply -- Periodicals; Alimentation -- Périodiques; Electronic journals; 338.1905
• DOI: 10.1016/j.foodpol.2019.101811
• Languages: English
• ISSNs: 0306-9192

Abstract

Highlights: Agricultural commercialisation has been increasing in Vietnam. Rice sales and cash crops are common forms of commercialisation. CKC Commercialisation is associated with higher asset accumulation by households. But agricultural commercialisation is negatively correlated with food consumption. Engaging in non-agricultural activities is associated with greater welfare levels. Abstract: Commercialisation by smallholder farmers has played a major role in agricultural development in many Asian countries, and while there are assumptions that this has led to welfare improvement, in fact there is relatively little evidence on this question. In this paper we use high quality panel data to examine the welfare impact of agricultural commercialisation in a leading Asian producer, Vietnam. We use the five-wave Vietnam Access to Resources Household Survey (VARHS) panel data set from 2008 to 16, three measures of household welfare and create commercialisation indexes in relation to all crops and to rice specifically. We find a significant positive relationship of commercialisation with household asset accumulation, but a negative association with consumption expenditure.