FACTORS AFFECTING THE INCOME OF PRODUCTION AND BUSINESS HOUSEHOLDS ENGAGED IN SMALL SQUID PROCESSING IN DA NANG CITY

Abstract

This study analyzes the factors affecting the income of households engaged in the production and trading of baby squid products in Da Nang City, using survey data from 100 households and a Cobb–Douglas production function model. The model exhibits strong explanatory power, confirming the relevance of input factors in explaining income variation among households. Input material costs exert the most substantial influence on household income, highlighting the critical role of raw material availability and production scale. Production capital investment and expenditure on product promotion also have positive and statistically significant effects, suggesting that investments in machinery, preservation technology, and marketing activities contribute to income improvement. In contrast, adverse natural conditions tend to reduce household income, reflecting the vulnerability of coastal livelihoods. Organizational factors such as brand recognition training and participation in value chain linkages do not yet demonstrate significant impacts, indicating limited effectiveness in practice. Overall, the findings underscore the central roles of raw material stability, investment capital, and climate adaptability in enhancing household income and promoting the sustainable development of baby squid products in Da Nang City.