JED, Vol. 16, No.2, August 2014, pp. 5-20 | DOI: 10.33301/2014.16.02.01
Provincial Total Factor Productivity in Vietnamese Agriculture and Its Determinants
Abstract:This paper was designed to capture the determinants of the agricultural total factor productivity (TFP) level across 60 provinces in Vietnam during the period 1990-2006. The TFP level in Tornqvist form was used to regress on 4 groups of determinants: omitted inputs of agricultural production process; quality of inputs used in agricultural production; technology factors; and output structure. The estimated results showed that: (i) Vietnam’s agricultural sector became relatively more capital intensive; (ii) South provinces were more productive, while North Midlands and Central Coast tended to lag further behind; (iii) labour mobility played a very important role in resources accumulation in agriculture in Vietnam, and so in improving TFP; and (iv) agricultural TFP was significantly influenced by land quality, farm size and land fragmentation.
Keywords:Total factor productivity (TFP), Malmquist TFP index, technical efficiency (TE), technical change (TC), productivity level, Tornqvist index, Vietnamese agriculture