Supply responses of rice and three food crops in Viet Nam
1995
Nguyen Tri Khiem | Pingali, P.L. (Cantho Univ., Cantho (Viet Nam))
Recent economic reforms in Vietnam agriculture consisted of a shift from collective agricultural production systems to an individual-oriented contract system (1981-88) and from 1989 onward to complete liberalization of input and output markets. This paper assesses the impact of market reforms on farmers' crop choice, land and input allocation decisions, and food-crop productivity using cross-section time-series data from seven regions and 17 yr from 1976 to 1992. A system of equations of the supply-response model with the choice-of-technique framework were estimated. Two dummy variables for policy regimes were included in the system. Estimated elasticity of rice area-share with respect to rice revenue per hectare is negligible. Rice-yield elasticity with respect to its price ranged from 0.02 in the northern regions to 0.09 in the southern regions. The impact of reforms was more remarkable on crop yield and input demand and farmers' private investment. A slight increase in total planted area and cropping intensity accompanied by a decline in rice area in the northern regions indicates that crop diversification is taking place. This diversification is induced by market price and by autonomous investment decisions of farmers that are made possible by the liberalization policy
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