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Market Reform, Incentives and Development in Vietnamese Rice Production

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  • Tuong Nhu Che
  • Tom Kompas
  • Neil Vousden

Abstract

This paper analyzes the dramatic increases in rice output and productivity in Vietnam due in large part to market reform, inducing farmers to work harder and use land more efficiently. The reform process is captured through changes in effort variables and a decomposition of total factor productivity (TFP) for Vietnam as a whole as well as for the north and south of the country taken separately. The results show that the more extensive is market reform the larger the increase in TFP and the share of TFP growth due to incentive effects, suggesting that more competitive markets and secure property rights matter greatly.

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File URL: https://crawford.anu.edu.au/degrees/idec/working_papers/IDEC03-7.pdf
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Bibliographic Info

Paper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec03-7.

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Length: 24 pages
Date of creation: 2003
Date of revision:
Handle: RePEc:idc:wpaper:idec03-7

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  1. Pingali, Prabhu L & Xuan, Vo-Tong, 1992. "Vietnam: Decollectivization and Rice Productivity Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 40(4), pages 697-718, July.
  2. McMillan, John & Whalley, John & Zhu, Lijing, 1989. "The Impact of China's Economic Reforms on Agricultural Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 781-807, August.
  3. Lawrence H. Summers, 1982. "Tax Policy, the Rate of Return, and Savings," NBER Working Papers 0995, National Bureau of Economic Research, Inc.
  4. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
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