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Market Reform, Incentives and Economic Development in Vietnamese Rice Production

Author

Listed:
  • Tuong Nhu Che

    (Australian Bureau of Agricultural and Resource Economics, Canberra, ACT, Australia)

  • Tom Kompas

    ([1] National Centre for Development Studies, Asia Pacific School of Economics and Government, Crawford Building (#13), Australian National University, Canberra, ACT, Australia 0200. [2] Australian Bureau of Agricultural and Resource Economics, Canberra)

  • Neil Vousden

    (National Centre for Development Studies and Department of Economics, Faculty of Economics and Commerce, Australian National University, Canberra, ACT, Australia)

Abstract

This paper analyses 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 the 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. Comparative Economic Studies (2006) 48, 277–301. doi:10.1057/palgrave.ces.8100113

Suggested Citation

  • Tuong Nhu Che & Tom Kompas & Neil Vousden, 2006. "Market Reform, Incentives and Economic Development in Vietnamese Rice Production," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 48(2), pages 277-301, June.
  • Handle: RePEc:pal:compes:v:48:y:2006:i:2:p:277-301
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    Citations

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    Cited by:

    1. Peter Warr & Huy Quynh Nguyen, 2023. "Productivity Effects of Viet Nam's Rice Land Restrictions," Working Papers DP-2022-43, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. David Lam, 2011. "How the World Survived the Population Bomb: Lessons From 50 Years of Extraordinary Demographic History," Demography, Springer;Population Association of America (PAA), vol. 48(4), pages 1231-1262, November.
    3. Huy, Hoang Trieu & Nguyen, Trung Thanh, 2019. "Cropland rental market and farm technical efficiency in rural Vietnam," Land Use Policy, Elsevier, vol. 81(C), pages 408-423.
    4. Joko Mariyono, 2014. "Dead weight loss associated with economic efficiency use of pesticides in Indonesian rice production," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 69-84, April.
    5. 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," Land Economics, University of Wisconsin Press, vol. 88(3), pages 478-495.
    6. Thi Long Vy Le & Truong Lam Do & Huu Nhuan Nguyen & Trung Thanh Nguyen, 2023. "Farmland accumulation and rural household income: evidence from the Red River Delta region of Vietnam," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 458-469.
    7. Minh-Tam T. Bui & Arayah Preechametta, 2016. "Land Inequality or Productivity: What Mattered in Southern Vietnam after 1975?," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(2), pages 300-319, May.
    8. Nguyen, Hoa-Thi-Minh & Kompas, Tom & Breusch, Trevor & Ward, Michael B., 2017. "Language, Mixed Communes, and Infrastructure: Sources of Inequality and Ethnic Minorities in Vietnam," World Development, Elsevier, vol. 96(C), pages 145-162.
    9. Vu, Linh Hoang, 2012. "Vietnam’s Agricultural Productivity: A Malmquist Index Approach," MPRA Paper 94800, University Library of Munich, Germany.

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