Agro-Enterprise Performance and Rural Investment Climate: Evidence from the North of Vietnam
This paper measures the impact of rural investment climate factors on the total factor productivity (TFP) of agro-enterprises in the North of Vietnam. Endogeneity of the production function and of the rural investment climate variables is addressed by using econometric models, based on individual agro-enterprise information, and by aggregating rural investment climate factors by various business lines and regions. Using agro-enterprise survey data, we conduct the analysis consist of two steps: firstly, an econometric regression of production function is estimated to produce a measure of TFP at the firm level; and secondly, the variation in TFP across agro-enterprises is statistically related to the rural investment climate factors as well as agro-enterprise characteristics. The result yields a number of insights on the factors that underlie productivity. In across various business lines and regions, the indicators of poor rural investment climate such as administrative procedures, outages and policy uncertain have significant negative effects on agro-enterprise productivity. In contrast, the other indicators include number of year in land using, internet use, and regional advantages have positive impact on TFP. However, the effects of the rural investment climate factors in magnitude on agro-enterprise performance are various among business lines and regions.
Key words: Agro-Enterprise performance; TFP; Rural investment climate; North of Vietnam
Alvaro, E., & J. Luis Guasch (2005). Assessing the Impact of the Investment Climate on Productivity Using Firm-Level Data: Methodology and Cases of Guatemala, Honduras, and Nicaragua. Retrieved from The World Bank Policy Research Working Paper No. 3621, https://openknowledge.worldbank.org/bitstream/handle/10986/8218/wps3621.pdf
Diego, C. (2006). Total Factor Productivity. Retrieved from New York University and NBER, http://www.people.hbs.edu/dcomin/def.pdf
Dollar, D., G. Iarossi, & T. Mengistae (2002). Investment Climate and Economic Performance: Some Firm Level Evidence from India (Working Paper No. 143). Center for Research on Economic Development and Policy Reform. Stanford University. Retrieved from http://www.stanford.edu/group/siepr/cgi-bin/siepr/?q=system/files/shared/pubs/papers/pdf/credpr143.pdf
Dollar, D., Hallward-Driemeier, M., & T. Mengistae (2003). Investment Climate and Firm Performance in Developing Economies. Retrieved from World Bank Publication, http://www.sticerd.lse.ac.uk/dps/eid2003/Dollar.pdf
Erwin, D. (2000). The Challenge of Total Factor Productivity Measurement. International Productivity Monitor, 1, 45-52.
Geeta, B., & Stone A. H. W. (2004). Investment Climate, Capabilities and Firm Performance: Evidence from the World Business Environment Survey. Retrieved from Investment Climate Department, World Bank Group, http://siteresources.worldbank.org/EDUCATI ON/Resources/278200-1126210664195/1636971-1126210694253/Investment_Climate.pdf
General Statistical Office (GSO) (2011). Statistical Year Book 2010. Statistical Publishing House, Hanoi, Vietnam.
International Center for Tropical Agriculture - CIAT (2007). Small-Scale Agro-Enterprise Development in the Upland of Lao PRD and Vietnam. Retrieved from SADU Project, http://www.ciat.cgiar.org/Newsroom/Documents/pdf_posters/poster_41_epmr07.pdf
Kumbhakar, S. C., & Lovell C. A. K. (2000). Stochastic Frontier Analysis. Cambridge University Press.
Mahvash, Q., & D. W. te Velde. (2007). State-Business Relations and Firm Performance in Zambia (Discussion paper series No.5). Retrieved from IPPG – Research Programme Consortium for Improving Institutions for Pro-Poor Growth, http://www.ippg.org.uk/ papers/dp5.pdf
Måns, S. (2011). Advanced Development Economics: Business Environment and Firm Performance. Retrieved from http://gul.gu.se/public/pp/public_file_archive/archive.html? publishedItemId=17183566&courseId=48169&fileId=18671866
Mendes, S., Magno, E., Teixeira C., & Salvato M. A. (2009). Effect of Infrastructure Investments on Total Factor Productivity (TFP) in Brazilian Agriculture. Paper for International Association of Agricultural Economists Conference. Retrieved from http://ageconsearch.umn.edu/bitstream/50777/2/IAAE%202009%2015.pdf
Mohammed, Z. H., & Hasan K. M. (2010). Investment Climate in South-West Region of Bangladesh: A Study of the Manufacturing Sector. Retrieved from Working paper 4/2010, Investment Climate Series, Economic Research Group, http://www.ergonline.o rg/ifc/document/ERG%20WP%204-2010.pdf
Nguyen, Quoc Viet. (2007, November 20-21). Sustainable Agriculture and Rural Development in Vietnam. Paper for the 3rd Session of the TC of APCAEM. Beijing, China. Retrieved from http://www.unapcaem.org/Activities%20Files/A0711/02vn.pdf
Subramanian, U., William P. A., & K. Lee. (2005). Measuring the Impact of the Investment Climate on Total Factor Productivity: The Cases of China and Brazil. World Bank Policy Research Working Paper 3792. Retrieved from http://www-wds.worldbank.org/servlet /WDSContentServer/WDSP/IB/2005/12/08/00001640620051208164419/Rendered/PDF/wps3792.pdf.
Storey, D. (1994). Understanding the Small Firm Sector. London: Routledge.
Tadlock, Cowan (2003). Value-Added Agricultural Enterprises in Rural Development Strategies. New York, NY: Nova Science Publisher, Inc.
Tran, H. C., Bui T. N., Tran Q. T., Tran T. T. H., Nguyen H. A., & Chu T. K. L. (2009). Final Report of the Assessment of Investment Climate and Implications Attracting Investors in Agriculture in Hanoi, Vietnam (Final report No.01X07/12-2008-2). Department of Science and Technology, Hanoi, Vietnam.
Tran, H. H. (2006). Attracting FDI in Agriculture and Rural Development: Status and Solutions for Improvement. Policy Advisory Briefing (PAB) No.4, Ministry of Agriculture and Rural Development, Vietnam.
Tran, Q. T., & Tran, H. C. (2010). Measuring the Impact of the Investment Climate on Total Factor Productivity (TFP) in Agricultural Sector: The Case of Hanoi, Vietnam. Journal of ISSAAS, 16(2), 87-97.
Veeramani, & Goldar (2004). Investment Climate and Total Factor Productivity in Manufacturing: Analysis of Indian States (Working paper No. 127). Indian Council for Research on International Economic Relations (ICRIER), New Delhi.
Waleerat, S., & Warr, P. (2010). Total Factor Productivity in Thai Agriculture: Measurement and Determinants. Retrieved from http://farmfoundation.info/news/articlefiles/1725-Waleerat.pdf
World Bank (2004). Doing Business in 2004: Understanding Regulation. Retrieved from Washington DC: World Bank and IBRD. New York, NY: Oxford University Press.
World Bank (2005). A Better Investment Climate for Everyone. World Development Report 2005, Washington. DC: World Bank and IBRD. New York, NY: Oxford University Press.
World Bank (2008). Agriculture for Development. Retrieved from World Development Report, Washington DC: World Bank IBRD, http://siteresources.worldbank.org/INTW DR2008/Resources/WDR00book.pdf
World Bank (2008a). Agriculture Competitiveness Project (Report No.44575-VN). Retrieved from Vietnam Sustainable Development Sustainable Development Department East Asia and Pacific Region, http://www-wds.worldbank.org/external/default/WDSContentServer/ WDSP/IB/2008/09/04/000333038_20080904061939/Rendered/PDF/445750PAD0P1081LY10IDA1R20081026211.pdf
World Bank (2008b). The Rural Investment Climate: Analysis and Findings. Agriculture & Rural Development Department, World Bank, Washington, DC.
World Bank (2011). Simplification of Process and Procedure in Land Access and Development Permits in Vietnam: An Administrative Toolkit for Provinces (Working paper No.66113). Retrieved from Investment Climate Advisory Services & World Bank Group, http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/12/22/00038619420111222033533/Rendered/PDF/661130WP0Box360tion0Toolkit020110en.pdf
Zhang, X., & Fan, S. (2004). How Productive is Infrastructure? A New Approach and Evidence from Rural India. American Journal of Agricultural Economics, 86(2), 492-501.
- There are currently no refbacks.
If you have already registered in Journal A and plan to submit article(s) to Journal B, please click the CATEGORIES, or JOURNALS A-Z on the right side of the "HOME".
We only use three mailboxes as follows to deal with issues about paper acceptance, payment and submission of electronic versions of our journals to databases: email@example.com; firstname.lastname@example.org; email@example.com
Copyright © 2010 Canadian Research & Development Centre of Sciences and Cultures
Address: 730, 77e AV, Laval, Quebec, H7V 4A8, Canada
Telephone: 1-514-558 6138