Abstract
<p><em>Purpose</em>: This paper aims to investigate the impacts of political connections on farming households’ performance, especially in tea production.</p><p>Methodology/Approach: The Box-Cox methodology is applied using the primary data surveyed on 244 tea farming households in Vietnam.</p><p><em>Findings</em>: The findings show the significant role of political connection on improving farming households’ income, particularly to members of the Communist Party, Youth Union and Farmer’s Union. However, the interaction effects of Farmer’s Union, Youth Union, Veteran’s Union and Communist Party with land has negatively significant impact on farming household income.</p><p><em>Practical Implications</em>: The evidences point out the capacity of improving tea producers’ income could be really potential implying most of existing related policies which should be adjusted.</p><p><em>Originality/Value</em>: This is the first research examining the impact of political connection on<em> </em>agricultural performance, especially in tea production. The impacts are estimated in de-tail; such as participating more on Veteran’s, Farmer’s, Youth Union and Communist Party may reduce time on cultivating; as a result, cultivated land could be reduced. Basing on these findings, we also suggest some appropriate policy implications related to the issue how to improve income of tea production households.</p>
Highlights
Research on the political connection is really abundant in economic literature
The findings show the significant role of political connection on improving farming households’ income, to members of the Communist Party, Youth Union and Farmer’s Union
We find an interesting result that the relationship between political connection and household income is not clear
Summary
Research on the political connection is really abundant in economic literature. Some authors emphasized the relationship between political connection and economic growth (e.g., Bardhan & Mookherjee, 2000; Ferraz & Finan, 2008). The literature has identified the value of political connections in corrup-tive countries (e.g., Fisman, 2001; Li et al, 2008; Bunkanwanicha & Wiwattanakantang, 2009; Cingano & Pinotti, 2013; Goldman et al, 2009). Certain studies estimated the market value of political connections (e.g., Fisman, 2001; Faccio et al, 2006). Our research aims to fill this gap by investigating the role of political connection on farmers’ performance in Vietnam
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