IDEAS home Printed from https://ideas.repec.org/p/era/wpaper/dp-2022-41.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: https://www.eria.org/uploads/media/discussion-papers/FY22/Adoption-of-Sustainable-Practices-for-Improving-Agricultural-Productivity-in-VietNam.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Brian J. Aitken & Ann E. Harrison, 2022. "Do Domestic Firms Benefit from Direct Foreign Investment? Evidence from Venezuela," World Scientific Book Chapters, in: Globalization, Firms, and Workers, chapter 6, pages 139-152, World Scientific Publishing Co. Pte. Ltd..
    2. Bezu, Sosina & Kassie, Girma T. & Shiferaw, Bekele & Ricker-Gilbert, Jacob, 2014. "Impact of Improved Maize Adoption on Welfare of Farm Households in Malawi: A Panel Data Analysis," World Development, Elsevier, vol. 59(C), pages 120-131.
    3. Pramila Krishnan & Manasa Patnam, 2014. "Neighbors and Extension Agents in Ethiopia: Who Matters More for Technology Adoption?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 96(1), pages 308-327.
    4. Julius Manda & Arega D. Alene & Cornelis Gardebroek & Menale Kassie & Gelson Tembo, 2016. "Adoption and Impacts of Sustainable Agricultural Practices on Maize Yields and Incomes: Evidence from Rural Zambia," Journal of Agricultural Economics, Wiley Blackwell, vol. 67(1), pages 130-153, February.
    5. Phu Nguyen-Van & Cyrielle Poiraud & Nguyen To-The, 2017. "Modeling farmers’ decisions on tea varieties in Vietnam: a multinomial logit analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 48(3), pages 291-299, May.
    6. Murakami, Yukako, 2005. "Are multinational enterprises more productive?: A test of the selection hypothesis," Journal of Asian Economics, Elsevier, vol. 16(2), pages 327-339, April.
    7. Giorgio Barba Navaretti & Davide Castellani, 2003. "Investments Abroad and Performance at Home Evidence from Italian Multinationals," Development Working Papers 180, Centro Studi Luca d'Agliano, University of Milano.
    8. Jens Hainmueller & Michael J. Hiscox & Sandra Sequeira, 2015. "Consumer Demand for Fair Trade: Evidence from a Multistore Field Experiment," The Review of Economics and Statistics, MIT Press, vol. 97(2), pages 242-256, May.
    9. Menale Kassie & John Pender & Mahmud Yesuf & Gunnar Kohlin & Randy Bluffstone & Elias Mulugeta, 2008. "Estimating returns to soil conservation adoption in the northern Ethiopian highlands," Agricultural Economics, International Association of Agricultural Economists, vol. 38(2), pages 213-232, March.
    10. Hailemariam Teklewold & Menale Kassie & Bekele Shiferaw, 2013. "Adoption of Multiple Sustainable Agricultural Practices in Rural Ethiopia," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(3), pages 597-623, September.
    11. Markussen, Thomas & Tarp, Finn, 2014. "Political connections and land-related investment in rural Vietnam," Journal of Development Economics, Elsevier, vol. 110(C), pages 291-302.
    12. Bauchet, Jonathan & Morduch, Jonathan & Ravi, Shamika, 2015. "Failure vs. displacement: Why an innovative anti-poverty program showed no net impact in South India," Journal of Development Economics, Elsevier, vol. 116(C), pages 1-16.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kazushi Takahashi & Rie Muraoka & Keijiro Otsuka, 2020. "Technology adoption, impact, and extension in developing countries’ agriculture: A review of the recent literature," Agricultural Economics, International Association of Agricultural Economists, vol. 51(1), pages 31-45, January.
    2. Pham, Huong-Giang & Chuah, Swee-Hoon & Feeny, Simon, 2021. "Factors affecting the adoption of sustainable agricultural practices: Findings from panel data for Vietnam," Ecological Economics, Elsevier, vol. 184(C).
    3. Michler, Jeffrey D. & Baylis, Kathy & Arends-Kuenning, Mary & Mazvimavi, Kizito, 2019. "Conservation agriculture and climate resilience," Journal of Environmental Economics and Management, Elsevier, vol. 93(C), pages 148-169.
    4. Aslihan Arslan & Kristin Floress & Christine Lamanna & Leslie Lipper & Solomon Asfaw & Todd Rosenstock, 2020. "IFAD RESEARCH SERIES 63 - The adoption of improved agricultural technologies - A meta-analysis for Africa," IFAD Research Series 304758, International Fund for Agricultural Development (IFAD).
    5. Adjognon,Guigonan Serge & Nguyen Huy,Tung & Guthoff,Jonas Christoph & van Soest,Daan, 2022. "Incentivizing Social Learning for the Diffusion of Climate-Smart Agricultural Techniques," Policy Research Working Paper Series 10041, The World Bank.
    6. Annemie Maertens & Hope Michelson & Vesall Nourani, 2021. "How Do Farmers Learn from Extension Services? Evidence from Malawi," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 569-595, March.
    7. Makaiko G. Khonje & Julius Manda & Petros Mkandawire & Adane Hirpa Tufa & Arega D. Alene, 2018. "Adoption and welfare impacts of multiple agricultural technologies: evidence from eastern Zambia," Agricultural Economics, International Association of Agricultural Economists, vol. 49(5), pages 599-609, September.
    8. Arslan, Aslihan & Belotti, Federico & Lipper, Leslie, 2017. "Smallholder productivity and weather shocks: Adoption and impact of widely promoted agricultural practices in Tanzania," Food Policy, Elsevier, vol. 69(C), pages 68-81.
    9. Hörner, Denise & Wollni, Meike, 2021. "Integrated soil fertility management and household welfare in Ethiopia," Food Policy, Elsevier, vol. 100(C).
    10. Jourdain C. Lokossou & Hippolyte D. Affognon & Alphonse Singbo & Michel B. Vabi & Ayoni Ogunbayo & Paul Tanzubil & Alcade C. Segnon & Geoffrey Muricho & Haile Desmae & Hakeem Ajeigbe, 2022. "Welfare impacts of improved groundnut varieties adoption and food security implications in the semi-arid areas of West Africa," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 14(3), pages 709-728, June.
    11. Khataza, Robertson R.B. & Doole, Graeme J. & Kragt, Marit E. & Hailu, Atakelty, 2018. "Information acquisition, learning and the adoption of conservation agriculture in Malawi: A discrete-time duration analysis," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 299-307.
    12. Giuseppe Maggio & Marina Mastrorillo & Nicholas J. Sitko, 2022. "Adapting to High Temperatures: Effect of Farm Practices and Their Adoption Duration on Total Value of Crop Production in Uganda," American Journal of Agricultural Economics, John Wiley & Sons, vol. 104(1), pages 385-403, January.
    13. Fetene, G.M. & Getehun, T.D., 2018. "Agricultural Technology Adoption for Food and Nutrition Security: Evidence from Ethiopia," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277332, International Association of Agricultural Economists.
    14. Manda, Julius & Feleke, Shiferaw & Mutungi, Christopher & Tufa, Adane H. & Mateete, Bekunda & Abdoulaye, Tahirou & Alene, Arega D., 2024. "Assessing the speed of improved postharvest technology adoption in Tanzania: The role of social learning and agricultural extension services," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    15. Arnold, Jens Matthias & Javorcik, Beata Smarzynska, 2005. "Gifted kids or pushy parents? Foreign acquisitions and plant performance in Indonesia," Policy Research Working Paper Series 3597, The World Bank.
    16. Woldegebrial Zeweld & Guido Van Huylenbroeck & Girmay Tesfay & Hossein Azadi & Stijn Speelman, 2018. "Impacts of Socio-Psychological Factors on Actual Adoption of Sustainable Land Management Practices in Dryland and Water Stressed Areas," Sustainability, MDPI, vol. 10(9), pages 1-23, August.
    17. Zhihai Yang & Amin W. Mugera & Ning Yin & Yumeng Wang, 2018. "Soil conservation practices and production efficiency of smallholder farms in Central China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(4), pages 1517-1533, August.
    18. Martey, Edward & Etwire, Prince Maxwell & Abdoulaye, Tahirou, 2020. "Welfare impacts of climate-smart agriculture in Ghana: Does row planting and drought-tolerant maize varieties matter?," Land Use Policy, Elsevier, vol. 95(C).
    19. repec:ags:aaea22:335656 is not listed on IDEAS
    20. Gebremariam, Gebrelibanos & Tesfaye, Wondimagegn, 2018. "The heterogeneous effect of shocks on agricultural innovations adoption: Microeconometric evidence from rural Ethiopia," Food Policy, Elsevier, vol. 74(C), pages 154-161.
    21. Abdul-Hanan Abdallah & Awal Abdul-Rahaman & Gazali Issahaku, 2021. "Sustainable agricultural practices, farm income and food security among rural households in Africa," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 17668-17701, December.

    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

    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:era:wpaper:dp-2022-41. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Ranti Amelia (email available below). General contact details of provider: https://edirc.repec.org/data/eriadid.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.