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Agricultural Technology and Marketing Margins in Vietnam

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  • Jensen, Tarp
  • Tarp, Finn

Abstract

This paper analyses the potential distributional impact and synergy effects from simultaneous improvements in agricultural sector productivity and reductions in trade and transportation margins. Two separate models are established to analyse (i) the interaction between agricultural technology and aggregate marketing margins in a Vietnamese context, and (ii) the relative importance of trade margins and transportation margins in explaining the importance of aggregate margins. The results show that a reduction in marketing margins is not a necessary complement for agricultural technology improvements to target welfare gains for rural households. Nevertheless, it remains a desirable complement since (i) it will allow for the reaping of significant synergy gains from interaction with agricultural productivity growth, and (ii) it will increase the targeting potential of agricultural productivity growth in terms of welfare improvements for poor rural households. Finally, the results show that a reduction in trade margins is a very potent instrument for reaping of synergy effects and targeting of rural household welfare. In contrast, transportation margins appear to be a surprisingly impotent instrument in these regards. 1

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29820.

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Date of creation: 2007
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Handle: RePEc:pra:mprapa:29820

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Keywords: Vietnam; Agricultural Technology and Marketing Margins in Vietnam; Agricultural Technology;

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References

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  1. Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Tarp, Finn, 1999. "Marketing margins and agricultural technology in Mozambique:," TMD discussion papers 43, International Food Policy Research Institute (IFPRI).
  2. Henning Tarp Jensen & Finn Tarp, 2005. "Trade Liberalization and Spatial Inequality: a Methodological Innovation in a Vietnamese Perspective," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 69-86, 02.
  3. Devaragan, Shantayanan & Lewis, Jeffrey D. & Robinson, Sherman, 1990. "Policy lessons from trade-focused, two-sector models," Journal of Policy Modeling, Elsevier, vol. 12(4), pages 625-657.
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Cited by:
  1. Arndt, Channing & Wobst, Peter, 2002. "HIV/AIDS and labor markets in Tanzania," TMD discussion papers 102, International Food Policy Research Institute (IFPRI).
  2. Arndt, Channing & Thurlow, James, 2009. "Inequality and Poverty Impacts of Trade Distortions in Mozambique," Agricultural Distortions Working Paper 52794, World Bank.
  3. Arndt, Channing, 2005. "The Doha Trade Round and Mozambique," Policy Research Working Paper Series 3717, The World Bank.

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