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Horticulturae 2016, 2(4), 18; doi:10.3390/horticulturae2040018

Adoption and Income Effects of Public GAP Standards: Evidence from the Horticultural Sector in Thailand

1
Institute for Environmental Economics and World Trade, Leibniz Universität Hannover, Königsworther Platz 1, 30167 Hannover, Germany
2
Institute of Development and Agricultural Economics, Leibniz Universität Hannover, Königsworther Platz 1, 30167 Hannover, Germany
*
Author to whom correspondence should be addressed.
Academic Editors: Marco A. Palma and Douglas D. Archbold
Received: 18 July 2016 / Revised: 28 October 2016 / Accepted: 14 November 2016 / Published: 21 November 2016
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Abstract

To reduce potential food hazards and increase the image of Thai horticultural products abroad, the Thai government introduced public standards of Good Agricultural Practices (Q-GAP). What makes orchid and mango producers in Thailand adopt Q-GAP standards and how do these affect their income and export shares? Primary data from 400 certified and non-certified orchid and mango producers was collected from main exporting provinces in Thailand. The binary probit model estimations show that it is the orchid and mango producers with higher education, and more physical and social capital who tend to comply with Q-GAP standards. Results from the Propensity Score Matching approach reveal that adoption of public GAP standards results in positive income effects for mango producers, but not for orchid producers. This can be explained by the fact that certified mango producers can sell their products to high-value retail chains which offer higher prices for their products, while certified and non-certified orchid producers cooperate with traders from the same value chain. View Full-Text
Keywords: Good Agricultural Practice; mango; orchid; Thailand; income impacts; Heckman model; Propensity Score Matching Good Agricultural Practice; mango; orchid; Thailand; income impacts; Heckman model; Propensity Score Matching
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MDPI and ACS Style

Krause, H.; Lippe, R.S.; Grote, U. Adoption and Income Effects of Public GAP Standards: Evidence from the Horticultural Sector in Thailand. Horticulturae 2016, 2, 18.

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