Working Paper BETA #2016-40

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Title : Modeling farmers’ decisions on tea varieties in Vietnam: a multinomial logit analysis

Author(s) : Phu Nguyen-Van, Cyrielle Poiraud, Nguyen To-The

Abstract : This paper analyzes households’ choice on tea varieties in Vietnam by using a multinomial logit model. The modelling takes into account the issue of unobserved individual heterogeneity and the endogeneity of some explanatory variables (use of chemical and organic fertilizers). The results show that important factors influencing the decision to adopt one type of tea varieties include income, age, household size, farming contract, and use of organic fertilizers, but also membership of professional associations such as the Tea Association and the Farmers Union.

Key-words : Multinomial logit; Unobserved heterogeneity; Tea varieties; Vietnam

JEL Classification : C25; C12; G12; Q18