Robustness Analysis of Organic Technology Adoption: Evidence from Northern Vietnamese Tea Production

47 Pages Posted: 18 Sep 2017 Last revised: 16 May 2019

See all articles by Nicolas Lampach

Nicolas Lampach

KU Leuven - Centre for Legal Theory and Empirical Jurisprudence

Nguyen Van Phu

University of Angers - Bureau of Economic Theory and Application (BETA)

Nguyen To The

Vietnam National University of Agriculture

Date Written: September 15, 2017

Abstract

Increasing consumer awareness on sustainable and healthy food choices gave rise to a growing demand for organic tea in the past decades. Most of this demand is met by imports from developing countries. This article examines the main factors affecting the choice of farm households to adopt organic tea production in Northern Vietnam. We apply a logit model to survey data from 241 Vietnamese tea farming households. We assess the robustness of the results by addressing three important statistical issues: (i) regressor endogeneity, (ii) unobserved heterogeneity at farm level and (iii) missing values. The main results are chiefly robust and largely in line with the theory. We find that farm households with higher revenues, and located in rich natural and physical environments are significantly more inclined to adopt organic tea production. Furthermore, the analysis reveals that farm households who are consulted by extension agents and belong to a tea
association increase the odds for the adoption of organic tea cultivation.

Keywords: Organic Farming, Regressor Endogeneity, Unobserved Heterogeneity, Multiple Imputations Method, Tea Production, Vietnam

JEL Classification: Q15, O33, Q18

Suggested Citation

Lampach, Nicolas and Phu, Nguyen Van and To The, Nguyen, Robustness Analysis of Organic Technology Adoption: Evidence from Northern Vietnamese Tea Production (September 15, 2017). Available at SSRN: https://ssrn.com/abstract=3037389 or http://dx.doi.org/10.2139/ssrn.3037389

Nicolas Lampach (Contact Author)

KU Leuven - Centre for Legal Theory and Empirical Jurisprudence ( email )

Tiensestraat 41
Leuven, B-3000
Belgium

Nguyen Van Phu

University of Angers - Bureau of Economic Theory and Application (BETA) ( email )

61 avenue of the Black Forest
F-67085 Strasbourg Cedex
France

Nguyen To The

Vietnam National University of Agriculture ( email )

Vietnam

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