Market reform, productivity and efficiency in Vietnamese rice production
AbstractThis paper analyzes the dramatic increases in rice output and productivity in Vietnam due largely 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) due to enhanced incentives for two main reform periods: output contracts (1981-87) and trade liberalization (1988-94). 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. However, in the post-reform period (1995-99), the incentive component of TFP dissipates as a result of falls in the price of rice and slow increases in input prices, especially for hired labour, fertilizer and capital. A stochastic production frontier is estimated to determine what farm-specific factors limit efficiency gains. Results show that farms in the main rice growing regions, those with larger farm size and farms with a higher proportion of rice land ploughed by tractor are more efficient, suggesting the need for additional reforms to augment productvity. In particular, the requirement that rice be grown in every province in Vietnam, restrictions on farm size (especially in the north) and the slow development of rural credit markets for capital and land are seen to restrict the level and growth of efficiency substantially.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by International and Development Economics in its series International and Development Economics Working Papers with number idec04-4.
Length: 34 pages
Date of creation: 2004
Date of revision:
Contact details of provider:
Postal: Crawford Building, Lennox Crossing, Building #132, Canberra ACT 0200
Phone: +61 2 6125 4705
Fax: +61 2 6125 5448
Web page: https://crawford.anu.edu.au/research/papers/
More information through EDIRC
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
This paper has been announced in the following NEP Reports:
- NEP-AGR-2004-12-12 (Agricultural Economics)
- NEP-ALL-2004-12-12 (All new papers)
- NEP-SEA-2004-12-12 (South East Asia)
- NEP-TRA-2004-12-12 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Tsionas, E.G., 2001.
"Stochastic Frontier Models with Random Coefficients,"
Athens University of Economics and Business
130, Athens University of Economics and Business, Department of International and European Economic Studies.
- Efthymios G. Tsionas, 2002. "Stochastic frontier models with random coefficients," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 17(2), pages 127-147.
- Tsionas, E.G., 2001. "Stochastic Frontier Models with Random Coefficients," DEOS Working Papers 130, Athens University of Economics and Business.
- Kalirajan, K P & Shand, R T, 1999. " Frontier Production Functions and Technical Efficiency Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 13(2), pages 149-72, April.
- Kodde, David A & Palm, Franz C, 1986. "Wald Criteria for Jointly Testing Equality and Inequality Restriction s," Econometrica, Econometric Society, vol. 54(5), pages 1243-48, September.
- Schmidt, Peter & Knox Lovell, C. A., 1979. "Estimating technical and allocative inefficiency relative to stochastic production and cost frontiers," Journal of Econometrics, Elsevier, vol. 9(3), pages 343-366, February.
- Tim J. Coelli & George E. Battese, 1996.
"Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers,"
Australian Journal of Agricultural and Resource Economics,
Australian Agricultural and Resource Economics Society, vol. 40(2), pages 103-128, 08.
- Coelli, Tim J. & Battese, George E., 1996. "Identification Of Factors Which Influence The Technical Inefficiency Of Indian Farmers," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 40(02), August.
- Coelli, Tim J. & Battese, George E., 1994. "Identification of Factors which Influence the Technical Inefficiency of Indian Farmers," 1994 Conference (38th), February 8-10, 1994, Wellington, New Zealand 148110, Australian Agricultural and Resource Economics Society.
- Nhu Che, Tuong & Kompas, Tom & Vousden, Neil, 2001. "Incentives and static and dynamic gains from market reform: rice production in Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(4), December.
- Forsund, Finn R. & Lovell, C. A. Knox & Schmidt, Peter, 1980. "A survey of frontier production functions and of their relationship to efficiency measurement," Journal of Econometrics, Elsevier, vol. 13(1), pages 5-25, May.
- 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.
- Battese, George E. & Corra, Greg S., 1977. "Estimation Of A Production Frontier Model: With Application To The Pastoral Zone Of Eastern Australia," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 21(03), December.
- Battese, George E. & Coelli, Tim J., 1988. "Prediction of firm-level technical efficiencies with a generalized frontier production function and panel data," Journal of Econometrics, Elsevier, vol. 38(3), pages 387-399, July.
- Meeusen, Wim & van den Broeck, Julien, 1977. "Efficiency Estimation from Cobb-Douglas Production Functions with Composed Error," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 18(2), pages 435-44, June.
- Battese, G E & Coelli, T J, 1995. "A Model for Technical Inefficiency Effects in a Stochastic Frontier Production Function for Panel Data," Empirical Economics, Springer, vol. 20(2), pages 325-32.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Tom Kompas & Tuong Nhu Che & Hoa Thi Minh Nguyen & Ha Quang Nguyen, 2012.
"Productivity, Net Returns, and Efficiency: Land and Market Reform in Vietnamese Rice Production,"
University of Wisconsin Press, vol. 88(3), pages 478-495.
- Tom Kompas & Tuong Nhu Che & Ha Quang Nguyen & Hoa Thi Minh Nguyen, 2009. "Productivity, Net Returns and Efficiency: Land and Market Reform in Vietnamese Rice Production," International and Development Economics Working Papers idec09-02, International and Development Economics.
- Tan, Shuhao & Heerink, Nico & Kruseman, Gideon & Qu, Futian, 2008. "Do fragmented landholdings have higher production costs? Evidence from rice farmers in Northeastern Jiangxi province, P.R. China," China Economic Review, Elsevier, vol. 19(3), pages 347-358, September.
- Huynh Truong Huy, 2009. "Technical Efficiency of Rice-Producing Households in the Mekong Delta of Vietnam," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture, vol. 6(2), pages 35-50, December.
- Jude, Asiimwe. K., 2009. "Technical Efficiency Of Upland Rice Producers In South Western Uganda," Research Theses 117711, Collaborative Masters Program in Agricultural and Applied Economics.
- repec:ebl:ecbull:v:30:y:2010:i:1:p:461-471 is not listed on IDEAS
- Thang Nam Do, 2008. "Impact of Dykes on Wetland Values in Vietnam's Mekong River Delta: A Case Study in the Plain of Reeds," EEPSEA Research Report rr2008051, Economy and Environment Program for Southeast Asia (EEPSEA), revised May 2008.
- Phoupet Kyophilapong, 2009. "The Impact of Irrigation on Aquatic Wetland Resources - A Case Study of That Luang Marsh, Lao PDR," EEPSEA Research Report rr2009031, Economy and Environment Program for Southeast Asia (EEPSEA), revised Mar 2009.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Webmaster).
If references are entirely missing, you can add them using this form.