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14. The Variation in Output and Marketing of Cashew in Tanzania and Vietnam

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Chapter Summary

This chapter presents stylized facts of the cashew sector in Tanzania and Vietnam, based on fieldwork conducted in the highest cashew-producing areas in both countries. Though the same crop is grown in both countries, the differences in output produced may be explained by three factors: how the crop sector is organized; how factor inputs are utilized; and how institutions are used to administer the crop. The induced innovation model of Hayami & Ruttan provides a handle to understand the divergence in production at the household level. The Global Value Chain (GVC) framework allows analysis of interaction of different actors within the chain, thus covering the institutional set-up. The induced innovation model of Hayami & Ruttan is based on the idea that technological and institutional innovations are endogenous to the economic system. In Tanzania, the cashew sector has experienced repeated institutional rearrangements affecting both quality and quantity of cashew produced.

Keywords: Global Value Chain (GVC) framework; Hayami & Ruttan; Tanzania; Vietnam



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