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The Effect of Incentive Reforms Upon Productivity: Evidence from the Vietnamese Rice Industry

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  • H. Son Nghiem
  • T. Coelli

Abstract

In this study we use region-level panel data on rice production in Vietnam to investigate total factor productivity (TFP) growth in the period since reunification in 1975. Two significant reforms were introduced during this period, one in 1981 allowing farmers to keep part of their produce, and another in 1987 providing improved land tenure. We measure TFP growth using two modified forms of the standard Malmquist data envelopment analysis (DEA) method, which we have named the Three-year-window (TYW) and the Full Cumulative (FC) methods. We have developed these methods to deal with degrees of freedom limitations. Our empirical results indicate strong average TFP growth of between 3.3 and 3.5 per cent per annum, with the fastest growth observed in the period following the first reform. Our results support the assertion that incentive related issues have played a large role in the decline and subsequent resurgence of Vietnamese agriculture.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 39 (2002)
Issue (Month): 1 ()
Pages: 74-93

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Handle: RePEc:taf:jdevst:v:39:y:2002:i:1:p:74-93

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Related research

Keywords: region-level panel data; rice production; Vietnam; reforms; Malmquist data envelopment analysis; incentive related issues;

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Cited by:
  1. Kumar, Surender & Managi, Shunsuke, 2012. "Productivity and convergence in India: A state-level analysis," Journal of Asian Economics, Elsevier, vol. 23(5), pages 548-559.
  2. Brummer, B. & Glauben, T. & Lu, W., 2006. "Policy reform and productivity change in Chinese agriculture: A distance function approach," Journal of Development Economics, Elsevier, vol. 81(1), pages 61-79, October.
  3. Vu Hoang Linh, 2012. "Efficiency of rice farming households in Vietnam," International Journal of Development Issues, Emerald Group Publishing, vol. 11(1), pages 60-73, April.
  4. Thang, Le Chien & Rowley, Chris & Quang, Truong & Warner, Malcolm, 2007. "To what extent can management practices be transferred between countries?: The case of human resource management in Vietnam," Journal of World Business, Elsevier, vol. 42(1), pages 113-127, March.
  5. Jamasb, T. & Pollitt, M.G. & Triebs, T., 2008. "Productivity and Efficiency of US Gas Transmission Companies: A European Regulatory Perspective," Cambridge Working Papers in Economics 0812, Faculty of Economics, University of Cambridge.

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