IDEAS home Printed from https://ideas.repec.org/p/ags/aare11/100722.html
   My bibliography  Save this paper

The impact of the stimulus package on the agricultural sector in Vietnam

Author

Listed:
  • Trang, Truong Thi Thu
  • Vanzetti, David

Abstract

The global financial crisis in 2008-2009 has affected almost all countries. Vietnam was hit by a large fall in export demand and foreign direct investment. Many governments quickly prescribed stimulus packages and Vietnam was no exception. It reduced taxes and increased government spending, mainly by subsidizing loans to state-owned enterprises. The question is what the stimulated impact is, if any, and whether a better outcome could have been achieved by a different mix of policies. In this paper, we use a simple general equilibrium model to quantify the impact of the various components of the stimulus package on the whole economy as well as agricultural sector. The results suggest that, in the short run at least, the stimulus package marginally stabilised national production and income. The package led to a reduction in total welfare because it favoured the non-agricultural sector. The poor in the agricultural sector could be better off if the investment policy were to boost demand for agricultural products. Furthermore, the risk of inflation and real exchange rate appreciation could undermine national competitiveness.

Suggested Citation

  • Trang, Truong Thi Thu & Vanzetti, David, 2011. "The impact of the stimulus package on the agricultural sector in Vietnam," 2011 Conference (55th), February 8-11, 2011, Melbourne, Australia 100722, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare11:100722
    DOI: 10.22004/ag.econ.100722
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/100722/files/Trang_Vanzetti_AARES_final.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.100722?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    International Development; Public Economics;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aare11:100722. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aaresea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.