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The impact of cooperative participation on income: the case of vegetable production in Vietnam

Giang Thi Huong Tran (Graduate School of Bioresource and Bioenvironmental Sciences, Kyushu University, Fukuoka, Japan) (Centre for Agricultural Policy, Institute of Policy and Strategy for Agriculture and Rural Development, Hanoi, Vietnam)
Teruaki Nanseki (Faculty of Agriculture, Kyushu University, Fukuoka, Japan)
Yosuke Chomei (Faculty of Agriculture, Kyushu University, Fukuoka, Japan) (Graduate School of Integrated Sciences for Life, Hiroshima University, Hiroshima, Japan)
Ly Thi Nguyen (Faculty of Agriculture, Kyushu University, Fukuoka, Japan) (Faculty of Economics and Rural Development, Vietnam National University of Agriculture, Hanoi, Vietnam)

Journal of Agribusiness in Developing and Emerging Economies

ISSN: 2044-0839

Article publication date: 28 September 2021

Issue publication date: 20 January 2023

361

Abstract

Purpose

The demand for clean vegetables has rapidly increased, many farmers gradually turn to vegetable cultivation to increase income; therefore, agricultural cooperative mobilized farmers group to facilitate them access to technical training and enhance compliance with the Vietnamese Good Agricultural Practices (VietGAP) standards. The purpose of this paper is to evaluate the impacts of the participation on farmer’s income as well as the major factors that affect the participation in cooperatives by the vegetable farmers in Vietnam.

Design/methodology/approach

The study used primary data collected from vegetable farmers in Vietnam. This study utilized propensity score matching to avoid initial selection bias. The differences between participants and nonparticipants will be adjusted by matching each membership individual to a nonmember based on similar observable characteristics by summarizing the conditional probability of a member given pretreatment characteristics.

Findings

This study demonstrates that participation in cooperatives is significantly affected by ethnicity, age of household head, labor involving vegetable production and extension service access. The results of this study also confirm that agricultural cooperatives have positive effects on member farmers to enhance income and that participants – on average – have a higher income than nonparticipants.

Research limitations/implications

The method cannot rule out the possibility of selection bias due to unobserved differences between participants and even an appropriate comparison group.

Originality/value

This study contributes to an improved understanding about impacts of cooperatives on farmers’ income in developing and emerging economies. Moreover, research also upgrades knowledge regarding the effectiveness of agricultural cooperatives in Vietnam, as well as guides policymakers in supporting the cooperatives in expanding the market and other necessary changes.

Keywords

Acknowledgements

This study was supported by the JSPS KAKENHI Grant Number JP19H00960.

The authors also sincere gratitude to Assistant Professor Dr. Yoshihiro UENISHI, Faculty of Agriculture, Kyushu University for his advice and for helping us to edit this manuscript.

Citation

Tran, G.T.H., Nanseki, T., Chomei, Y. and Nguyen, L.T. (2023), "The impact of cooperative participation on income: the case of vegetable production in Vietnam", Journal of Agribusiness in Developing and Emerging Economies, Vol. 13 No. 1, pp. 106-118. https://doi.org/10.1108/JADEE-05-2021-0108

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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