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Market constraints, misallocation, and productivity in Vietnam agriculture

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  • Ayerst, Stephen
  • Brandt, Loren
  • Restuccia, Diego

Abstract

We examine important changes in agriculture in Vietnam in the context of ongoing structural changes in the economy. We use a household-level panel dataset and a quantitative framework to document the extent and consequences of factor misallocation in agriculture during the period between 2006 and 2016. Despite rapid growth in agricultural productivity and a reallocation of factor inputs to more productive farmers, we find that misallocation across farmers remains high and increased during the period. Reallocation of factor inputs has not been strong enough to accommodate substantial changes in farm productivity over time. Our analysis also reveals important differences between the north and south regions.

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  • Ayerst, Stephen & Brandt, Loren & Restuccia, Diego, 2020. "Market constraints, misallocation, and productivity in Vietnam agriculture," Food Policy, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:jfpoli:v:94:y:2020:i:c:s0306919220300245
    DOI: 10.1016/j.foodpol.2020.101840
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    Cited by:

    1. Stephen Ayerst & Loren Brandt & Diego Restuccia, 2023. "Distortions, Producer Dynamics, and Aggregate Productivity: A General Equilibrium Analysis," Working Papers tecipa-748, University of Toronto, Department of Economics.
    2. Zhou, Fujin & Oostendorp, Remco, 2024. "Big distortions, small efficiency loss: Measuring resource misallocation with complementary distortions in Vietnam," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 244-261.
    3. CAO, Yu & Zou, Jie & Fang, Xiaoqian & Wang, Jiayi & Cao, Yu & Li, Guoyu, 2020. "Effect of land tenure fragmentation on the decision-making and scale of agricultural land transfer in China," Land Use Policy, Elsevier, vol. 99(C).
    4. Ayala-Cantu, Luciano & Morando, Bruno, 2020. "Rental markets, gender, and land certificates: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    5. Bruno Morando, 2023. "Subsistence Farming and Factor Misallocation: Evidence from Ugandan Agriculture," The World Bank Economic Review, World Bank, vol. 37(4), pages 570-598.
    6. Shuai Qin & Zheying Han & Hong Chen & Haokun Wang & Cheng Guo, 2022. "High-Quality Development of Chinese Agriculture under Factor Misallocation," IJERPH, MDPI, vol. 19(16), pages 1-20, August.
    7. Mingze Wu & Yueji Zhu, 2023. "Does Farmers’ Lottery Participation Affect Technical Efficiency of Banana Production in Rural China?," Agriculture, MDPI, vol. 13(4), pages 1-17, March.
    8. Chen, Minjie & Heerink, Nico & Zhu, Xueqin & Feng, Shuyi, 2021. "Do Small Farm Sizes Imply Large Resource Misallocation? Evidence from Wheat-Maize Double Cropping Farms in the North China Plain," 2021 Conference, August 17-31, 2021, Virtual 315141, International Association of Agricultural Economists.
    9. Jianxu Liu & Changrui Dong & Shutong Liu & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Sources of Total-Factor Productivity and Efficiency Changes in China’s Agriculture," Agriculture, MDPI, vol. 10(7), pages 1-18, July.
    10. Pengfei Ge & Tan Liu & Xiaoxu Wu & Xiulu Huang, 2023. "Heterogenous Urbanization and Agricultural Green Development Efficiency: Evidence from China," Sustainability, MDPI, vol. 15(7), pages 1-22, March.
    11. Tuan Nguyen Tran, 2021. "The consequences of expropriation of agricultural land and loss of livelihoods on those households who lost land in Da Nang, Vietnam," Environmental & Socio-economic Studies, Sciendo, vol. 9(2), pages 26-38, June.
    12. Jianxu Liu & Mengjiao Wang & Li Yang & Sanzidur Rahman & Songsak Sriboonchitta, 2020. "Agricultural Productivity Growth and Its Determinants in South and Southeast Asian Countries," Sustainability, MDPI, vol. 12(12), pages 1-21, June.
    13. KOJIN, Emi & DO, Van Hoang & NGUYEN, Thiet & ARIMOTO, Yutaka & VO, Hong Tu & MANO, Yukichi & NGUYEN, Duy Can & TSUKADA, Kazunari, 2023. "Government and market initiatives for the governance of fertilizer quality in Vietnam," Discussion paper series HIAS-E-130, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    14. Appau, Samuelson & Awaworyi Churchill, Sefa & Smyth, Russell & Trinh, Trong-Anh, 2021. "The long-term impact of the Vietnam War on agricultural productivity," World Development, Elsevier, vol. 146(C).
    15. Chen, Minjie & Heerink, Nico & Zhu, Xueqin & Feng, Shuyi, 2022. "Do small and equally distributed farm sizes imply large resource misallocation? Evidence from wheat-maize double-cropping in the North China Plain," Food Policy, Elsevier, vol. 112(C).

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    More about this item

    Keywords

    Agriculture; Misallocation; Vietnam; Productivity; Regions;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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