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Market constraints, misallocation, and productivity in Vietnam agriculture

Author

Listed:
  • Loren Brandt
  • Stephen Ayerst
  • Diego Restuccia
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.

Suggested Citation

  • Loren Brandt & Stephen Ayerst & Diego Restuccia, 2018. "Market constraints, misallocation, and productivity in Vietnam agriculture," WIDER Working Paper Series wp-2018-114, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-114
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    References listed on IDEAS

    as
    1. Tasso Adamopoulos & Diego Restuccia, 2014. "The Size Distribution of Farms and International Productivity Differences," American Economic Review, American Economic Association, vol. 104(6), pages 1667-1697, June.
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    6. Tasso Adamopoulos & Loren Brandt & Jessica Leight & Diego Restuccia, 2022. "Misallocation, Selection, and Productivity: A Quantitative Analysis With Panel Data From China," Econometrica, Econometric Society, vol. 90(3), pages 1261-1282, May.
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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; Productivity; Regional characteristics; Agricultural productivity;
    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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