The Role of Off‐Farm Labor Participation Decisions of Married Farm Couples on Farm Direct Marketing in Taiwan

In: The developing economies: the journal of the Institute of Developing Economies, Tokyo, Japan, Volume 55, Issue 1, p. 3-22

Abstract

Direct marketing from farm producers to consumers has been seen as a viable business option to increase farm income. This study investigates the factors that determine a farm's direct marketing decisions; special attention is paid to understanding the correlation between farm couples' off‐farm labor participation and the farm's adoption of direct marketing strategies. A nationally representative dataset of 3,670 married family farm couples in Taiwan is used as an illustration. A multiple choice treatment effect model is estimated to cope with endogeneity bias. The results indicate a significant association between farm couples' off‐farm labor decisions and the farm's adoption of direct marketing strategies. Moreover, gender difference is evident: farm husband's (wife's) off‐farm work is positively (negatively) associated with the farm's direct marketing decision.