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Structural transformation and intertemporal evolution of real wages, machine use, and farm size–productivity relationships in Vietnam:

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  • Liu, Yanyan
  • Violette, William
  • Barrett, Christopher B.

Abstract

This paper explores the evolution of real agricultural wages, machinery use, and the relationship between farm size and productivity in Vietnam during its dramatic structural transformation over the course of the 1990s and 2000s. Using six rounds of nationally representative household survey data, we find strong evidence that the inverse relationship between rice productivity and planting area attenuated significantly over this period and that the attenuation was most pronounced in areas with higher real wages. This pattern is also associated with sharp increases in machinery use, indicating a scale-biased substitution effect between machinery and labor. The results suggest that rural-factor market failures are receding in importance, making land concentration less of a cause of concern for aggregate food production.

Suggested Citation

  • Liu, Yanyan & Violette, William & Barrett, Christopher B., 2016. "Structural transformation and intertemporal evolution of real wages, machine use, and farm size–productivity relationships in Vietnam:," IFPRI discussion papers 1525, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1525
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    References listed on IDEAS

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    Cited by:

    1. Susan Godlonton & Manuel A Hernandez & Mike Murphy, 2018. "Anchoring Bias in Recall Data: Evidence from Central America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(2), pages 479-501.
    2. Takeshima, Hiroyuki & Shrestha, Rudra Bahadur & Kaphle, Basu Dev & Karkee, Madhab & Pokhrel, Suroj & Kumar, Anjani, 2016. "Effects of agricultural mechanization on smallholders and their self-selection into farming: An insight from the Nepal Terai," IFPRI discussion papers 1583, International Food Policy Research Institute (IFPRI).
    3. Wang, Qian & Qiu, Junjie & Yu, Jin, 2019. "Impact of farmland characteristics on grain costs and benefits in the North China Plain," Land Use Policy, Elsevier, vol. 80(C), pages 142-149.

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    Keywords

    productivity; structural change; farm size; food production; households; mechanization;
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