Agricultural productivity growth in vietnam in reform and post-reform period

Abstract

This paper applies the Malmquist productivity index method to measure total factor productivity (TFP) growth in Vietnamese agriculture using panel data from 60 provinces in Vietnam during 1985–2000 when Vietnam implemented widespread de-collectivization, trade liberalization, and reformed her agriculture sector. This study indicates that most of the early growth in Vietnamese agriculture during the first reform period 1985–1990 was due to TFP growth in response to incentive reforms. During the second reform period 1990–1995, the growth rate of TFP fell, and Vietnam’s agricultural growth was mainly caused by drastic investment in capital. In the post-reform period (1995–2000), TFP growth increased again, though still much lower than 1985–1990. Overall, the TFP growth rate in the whole period is estimated at 1.96 percent, contributing to 38% of Vietnam’s agricultural growth.