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We examine the effects of income uncertainty on mental health in Vietnam. We assess this issue using volatility in the price of coffee, a key export commodity, that exposes small coffee farmers to income uncertainty. Using household panel data collected over 2016-2020, we find an increase in volatility of the international coffee price to be positively associated with psychological distress among coffee farmers. The magnitude is greater for males and the findings are robust to several checks. These results are further substantiated by corresponding estimates for related health measures and self-reported happiness. Channels include an increase in mental stress due to pessimistic expectations of future economic well-being, increased cognitive load and alcohol consumption, and reduced social capital. The results highlight the psychological toll of living with income uncertainty and provide support for the provision of social safety nets that protect farmers from frequent commodity price fluctuations.

We investigate the relationship between business practices and enterprise productivity using panel data with matched employer and employee information from Myanmar. The data show that micro, small, and medium-sized manufacturing enterprises in Myanmar typically adopt only a few modern business practices, and the persistence in the use is extremely low. Even so, we find a positive and economically important association between business practices and productivity. Specifically, the empirical results show that a one standard deviation difference in applied business practices (equivalent to applying an additional 4 to 5 of the 20 business practices in focus) is associated with an 8–10 per cent difference in labour productivity. Utilising the employer–employee information to estimate Mincer-type wage regressions, we find that workers receive about half to two-thirds of the productivity gain in higher wages. Overall, our findings support the notion of business practices as a production technology, and we find that workers and managers split the productivity gains evenly.

Commitments to curb illegal logging and deforestation have proliferated in recent years with the increase of global trade in tropical timber and wood products. While they reflect international sustainability demands, the employed mechanisms to assure timber legality verification may not reflect conditions faced by local private sector actors. Facing rapid forest loss and limited foreign market access, government of Myanmar started reforming its forest policy to include a system of timber legality verification. Drawing on policy analysis and mixed-methods field research, we evaluate the feasibility of the policy reform to achieve economic and environmental upgrading in the timber value chain. Our findings question the transformative capacity of this policy reform. Not only that it failed to meet its sustainability goals, it has also created favourable conditions for a race to the bottom and concentration in the timber value chain. Economic and environmental upgrading take place at the expense of private smallholders who are expected to address a range of obstacles, including limited access to inputs, quality downgrading, and increased operational costs, which hamper their performance. To prevent socio-environmental losses, forest-sector regulatory reforms should be particularly mindful of these challenges in the midstream segment of the value chain.