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Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

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Nội dung chi tiết: Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam oduction in a greying’ rural V ietnam?Hoa-Thi-Minh Nguyen’The Australian National University hoa.nguycn@anu.edu.auHuong DoThe Australian National Univ

ersity lien.huong.do@anu.cdu.au andTom KompasUniversity of Melbourne toni.kompas@unimelb.edu.au* corresponding author November 2020Working Paper No. 2 Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

020.26Arndt-Corden Department of Economics Crawford School of Public Policy AN u College of Asia and the PacificThis Working Paper series provides a v

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

ehicle for preliminary circulation of research results in the fields of economic development and international trade Tire seiies is intended to stimul

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam rompt distribution, papers are screened, but not formally refereedCopies are available at https: acde.cravvford.anu.edu.au acde-research working-paper

s-trade-and- development.Economic efficiency versus social equity: the productivity challenge for rice production in a ‘greying' rural VietnamHoa-Thi- Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

Minh Nguyen*’*, Huong Do*, Toni Kompasb'*a Crawford School of Public Policy, Crawford Building (132), Lennox Crossing, Australian National University,

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

Canberra. ACT, 2601, Australia6 Centre of Excellence for Biosecurity Risk Analysis, School of Biosciences and School of Ecosystem and Forest Sciences

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam come and ultimately narrow the urban-rural disparity in transitional economies. However, the objectives of social equity and economic efficiency can c

ontradict each other, especially in the context of fierce competition for resources between agriculture and non-agricultural sectors and given the inh Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

erently redundant and unskilled aging rural population that often occurs during the economic transition to a market economy. We investigate the case o

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

f Vietnam during its high economic growth period (2000-2016),i over which the country introduced policies to increase efficiency in rice production an

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam me. At the same time, the Malmquist productivity index has been falling in most regions due to a decline in technical change, along with little improv

ement in technical efficiency. We further examine the causes of inefficiency using data from two household surveys in 2004 and 2014 (with plot-level i Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

nformation) along with semi-structured interviews with farmers in 2016-2017. The high ratio of aging farm workers who are unable to find alternative e

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

mployment during the transition emerges as an essential impediment to rice productivity, in addition to previously documented landuse’ related issues.

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam ce productivity. Thus, the goals of economic efficiency and social equity appear contradic-* Corresponding authorEmail addresses: hoa.nguyenộanu.edu.a

u (Hoa-Thi-Minh Nguyen), llen.huong.do^anu.edu.au (Huong Do), toa.ko-pasSur.imelb.edu.au (Tom Koinpas)Preprint submitted to ACDE IVorbnặ papers in tra Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

de and development44160https://khothuvien.cori!tory features of Vietnam’s rice policies, posing a significant development challenge for the country’s

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

current and likely future development.Keywords: greying agriculture, productivity, rice. Vietnam. Data Envelopment Analysis, the Malmquist productivit

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam ice-guided market principles and open trade have blended within the framework of democratic centralism, driving rapid economic growth and impressive p

overty reduction. However, inequality in Vietnam has been on the rise (World Bank. 2012), contrary to prevailing socialist principles. One of the main Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

forces at play is that the benefits of integration with the world economy have accrued disproportion lly to the non-agricult ural sector, resulting i

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

n a widening rural-urban income gap (World Bank. 2018). At the same time, labor remains concentrated in agriculture, a sector that has been shrinking

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam countryside and peasantry (the so-called ’three Hongs’ issue) after joining the World Trade Organization ( WTO) in 2007. Specifically, it has highligh

ted the role of ‘three nongs’ as “the basis and an important force for socio-economic development and maintaining political stability” (Resolution 26- Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

NQ/TW). In this light, various policy measures, ranging from changes ill land use, irrigation and technology to market and price reform, have been imp

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

lemented to enhance efficiency, productivity, and value-added in agricultural production. with a goal to eventually raise income for farmers. These me

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam the objective of this paper is twofold. We (a) examine whether there have been productivity increases in rice production and (b) investigate what fact

ors have hindered any productivity increases. 'lb do so, wo first focus on regional income terms of trade (TOT) and the Mahnquist productivity index ( Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

MPI) during 2000 2016. We find a steadily decreasing trend in TOT for rice producers, indicating regression in farm income.2There are at least two rea

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

sons for this. First, labor cost, which accounts for about 50% of the total cost, increases much faster than the output price, given the high economic

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam in technical change, coupled with little improvement in technical efficiency in most regions. So what would explain this trend?To identify impediments

to productivity, we take advantage of the 2004 and 2014 Vietnam Household Living Standarils Survey (VHLSS) data and our semi-structured interviews wi Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

th farmers and various stakeholders in the rice sector ill 2016-2017. The VHLSS data collected by the General Statistical Office (GSO) is the only nat

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

ionallyrepresent at ive surveys that contain questions on land use at the plot level. We find the high ratio of elderly farm members (55 years old or

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam r interviews reveal a subsistence-product ion trap for most farmers, especially those who cannot find alternative employment due to their mature age a

nd the lack of appropriate skills. The result suggests that rural Vietnam will be further left behind due to bearing a double-burden of an aging unski Economic efficiency versus social equity the productivity challenge for rice production in a ‘greying’ rural vietnam

lled population and the smaller share in the gains from the country’s export-led economic growth.

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

Australian National UniversityWorking Papers in Trade and DevelopmentEconomic efficiency versus social equity: the productivity challenge for rice pro

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