When neighbors matter: spillover effects in disease outbreak in shrimp farming in Vietnam

Crawford School of Public Policy | Arndt-Corden Department of Economics

Event details

ACDE Seminar

Date & time

Tuesday 11 June 2024


Acton Theatre JG Crawford Building and Online Zoom


Susan Olivia (University of Waikato)


Firman Witoelar Kartaadipoetra

Disease outbreak is a major issue in aquaculture sector that may lead to a significant economic loss. While the source of disease is difficult to trace, understanding how it occurs is important in mitigating the problem. One important factor that has not received sufficient attention is the presence of spillover among fish farmers who are connected by waterways. In this paper, we examine the presence of spillover among shrimp farmers in Southern Vietnam based on the primary data. In particular, we quantify the effects of physical spillover of disease outbreak in one farm to another farm and the peer effects of farming practices among the neighbors. We solve the reflection problem posed by Manski (1993) by employing a method developed by Bramoullé et al. (2009) in social network analyses. Our findings indicate that neighbors’ farming practices indeed positively affect a farmer’s practices. Further, the disease outbreak in neighbors’ ponds affects the disease outbreak in a farmer’s pond. However, we find that neighbors’ farming practices are insignificant in explaining the disease outbreak in a farmer’s pond, indicating that neighbors’ practices affect only through the realization of disease and peer effects on the farmer’s practices.

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