Market constraints, misallocation, and productivity in vietnam agriculture.

Abstract

We examine important changes in agriculture in Vietnam in the context of ongoing structural changes in the economy. We use a household-level panel dataset and a quantitative framework to document the extent and consequences of factor misallocation in agriculture during the period between 2006 and 2016. Despite rapid growth in agricultural productivity and a reallocation of factor inputs to more productive farmers, we nd that misallocation across farmers remains high and increased during the period. Reallocation of factor inputs has not been strong enough to ac- commodate substantial changes in farm productivity over time. Our analysis also reveals important di erences between the north and south regions