The Impact of Socio-Economic Factors and Transaction Costs on Farmers’ Market Choice Behavior: A Case Study of Safe Vegetable Producers in Thanh Hoa Province, Vietnam
Year: 2025
Type: article
Study design: Observational Study
Abstract: This study investigates the impact of socio-economic factors and transaction costs on smallholder farmers’ decisions regarding market channel selection for safe vegetable sales in Thanh Hoa Province, Vietnam. Amidst growing demand for food safety and quality, understanding the determinants that shape farmers’ marketing behavior is critical for improving market access and income generation among rural households. Drawing on transaction cost economics and using data collected from 1,380 surveyed farmers, the study employs a Seemingly Unrelated Regression (SUR) model to analyze the proportion of vegetable sales across three key market channels: contract-based sales, sales to local traders, and direct retail in the local markets. The results indicate that certified farmers are more likely to engage in formal contract-based markets, whereas non-certified producers predominantly rely on informal local sales. Key determinants of market choice include age, production experience, landholding size, capital investment, access to market information, buyer reputation, and transaction-related constraints such as transportation and grading requirements. Certification schemes VietGAP and organic standards are crucial factors in enhancing market access and price premiums, yet adoption remains limited due to cost and knowledge barriers. The findings emphasize actionable insights for policymakers and development practitioners seeking to strengthen value chain integration, reduce transaction costs, and promote sustainable agricultural development for smallholder producers.
Author: Nguyen Hung Anh
Language: English
Domain: Life Sciences
Open Access status: hybrid
OpenAlex ID: W4409645282