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Adoption of Sustainable Practices for Improving Agricultural Productivity in Viet Nam

Author

Listed:
  • Huong-Giang Pham

    (Faculty of International Economics, Foreign Trade University, Viet Nam)

  • Tuong-Anh T. Nguyen

    (Faculty of International Economics, Foreign Trade University, Viet Nam)

  • Hoang-Nam Vu

    (Faculty of International Economics, Foreign Trade University, Viet Nam)

Abstract

Conventional agricultural methods are putting considerable strain on developing countries' environments. This problem can be ameliorated through the adoption of Sustainable Agricultural Practices (SAPs), which can bring economic, ecological and social benefits for farmers, consumers and the overall economy. However, the adoption rates of SAPs remain low in many developing countries. It is therefore vital to provide empirical evidence on the improvement of agricultural productivity as it may assist policymakers in designing suitable policy as well as encourage farmers to adopt SAPs on their farms. This study analyses the impacts of different SAP adoption packages on land productivity and labour productivity in Viet Nam. This is the first attempt in the context of Viet Nam to investigate the economic effects of adopting different SAP packages including crop diversification (CD), conservation agriculture practices (CA) and a combination of those. Using panel Viet Nam Access to Resources Household Survey (VARHS) data with multinomial endogenous switching regressions and an instrumental variable helps reduce potential biases in impact evaluation that previous studies have not fully addressed. Results confirm that if a farmer adopts SAPs, it may raise his net profit per hectare by about 4 million Vietnamese Dong (D)/ha/year, whereas the agricultural income per hectare increases by about 4–6 million D/ha/year. Moreover, the joint adoption of multiple SAPs brings higher benefits (of about 2-4 more million D/ha/year) than single SAP adoption. These findings suggest that policymakers and related stakeholders should focus on promoting the adoption of a combination of crop diversification and conservation practices.

Suggested Citation

  • Huong-Giang Pham & Tuong-Anh T. Nguyen & Hoang-Nam Vu, 2023. "Adoption of Sustainable Practices for Improving Agricultural Productivity in Viet Nam," Working Papers DP-2022-41, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:dp-2022-41
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    More about this item

    Keywords

    sustainable agricultural practices; multinomial endogenous switching regressions; household production; Viet Nam.;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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