FACTORS AFFECTING FARMERS' DECISION IN GROWING CINNAMOMUM IN THAI NGUYEN PROVINCE

Abstract

This study was conducted to determine factors affecting farmers' decision in growing cinnamomum in Thai Nguyen province. Data were obtained from 210 cinnamon growing households in Thai Nguyen province based on a questionnaire focusing mainly on the two districts with the largest cinnamon growing area in the province, Dinh Hoa and Vo Nhai. The study used Structural Equation Modelling (SEM) for analysis. The evaluation of the measured scale reliability using Cronbach's alpha and Exploratory Factor Analysis (EFA) were used in this study. The results of multiple regression showed that there were six factors affecting farmers' decision in growing cinnamomum in Thai Nguyen province including economic benefits, capital, policies to support production and consumption of products, age of the household head, production experience and education level, among which, economic benefit had the strongest influence. In addition, the study also proposes some recommendations to develop cinnamon production in Thai Nguyen province through suggestions to improve the influencing factors that have been given in the study.