Liberalisation, incentives and Vietnamese agricultural growth
Date
2002
Authors
Che, Nhu Tuong
Kompas, Tom
Vousden, Neil
Journal Title
Journal ISSN
Volume Title
Publisher
Crawford School of Economics and Government, The Australian National University
Abstract
This paper uses a dynamic model to analyse the effects of liberalisation on the longrun
output and transitional growth of the Vietnamese rice sector during the period of
reform from 1981 to the present. In particular, the paper attempts to allow for the incentive effects which can result if liberalisation induces individuals to work harder and use land more efficiently. Each new stage of liberalisation is shown to result in a higher steady-state level of physical capital and rice output. It is shown that, even with an assumed zero rate of growth in the ‘Solow residual’ component of total factor productivity, liberalisation may increase the long-run production of rice
output by an order of two times its initial value. The analysis also predicts a
significantly higher transitional growth rate of rice output for the more pervasive
second stage of liberalisation than that for the first stage, suggesting that incentives
and open markets matter greatly.
Description
Author Che also known as Che, Nhu; Tuong Nhu Che; Che, Tuong Nhu
Keywords
Citation
Tuong, N.C., Kompas, T. & Vousden, N. (2002). Liberalisation, incentives and Vietnamese agricultural growth. International and Development Economics Paper 02-5. Canberra, ACT: Crawford School of Economics and Government, The Australian National University.
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