Comparative advantage of Vietnam's rice sector under different liberalisation scenarios: a policy analysis matrix (PAM) study

Nguyen, Manh Hai; Heidhues, Franz

Comparative advantage of Vietnam's rice sector under different liberalisation scenarios: a policy analysis matrix (PAM) study

dc.contributor.author	Nguyen, Manh Hai	de
dc.contributor.author	Heidhues, Franz	de
dc.date.accessioned	2024-04-08T08:37:22Z
dc.date.available	2024-04-08T08:37:22Z
dc.date.created	2005-07-05
dc.date.issued	2004
dc.description.abstract	The rapidly changing global economic environment and domestic economic reforms in Viet-nam have brought the issue of comparative advantage of the rice sector to the forefront. In recent years, Vietnam has had to compete in an increasingly competitive rice export market. This paper examines the fluctuations in the comparative advantage of Vietnamese rice production based on different scenarios of trade liberalisation and economic reform in Viet-nam. To do this, a Policy Analysis Matrix (PAM) was used in conjunction with an econo-metric model. The study involved simulation of a large number of scenarios of trade liberalisation and macroeconomic reform, using variations in a single factor and in a group of factors such as product price and input costs, i.e., the price of imported fertilisers, land, water and labour costs, etc. The empirical results show that in 1998 (the baseline scenario), the comparative advantage in rice was relatively high and that the use of domestic resources ? i.e., land, labour and water ? was efficient in economic terms. The estimated DRC elasticities in respect of the world rice price and the shadow exchange rate in 1998 showed a considerably improved com-parative advantage. The estimated DRC elasticities for land rent, the social costs of labour, the import price of fertilisers and irrigation water charges were small in absolute values indi-cating small and negative impacts on comparative advantage with a rise in these prices. The results of sensitivity analyses revealed that the comparative advantage of rice is very sensitive to changes in its export price. In addition, the exchange rate and land rent are also important determinants of the rice sector?s comparative advantage in Vietnam. Other empirical results show that Vietnam is still likely to retain its comparative advantage in rice production in the next decade; however, its comparative advantage might be seriously affected or even dis-appear entirely if Vietnam is exposed to a number of unfavourable economic conditions simultaneously. The major recommendation of this paper is that production should be diversified, with appropriate agricultural policy support, within a broader framework of macroeconomic transformation and trade liberalisation.	en
dc.identifier.swb	118786768
dc.identifier.uri	https://hohpublica.uni-hohenheim.de/handle/123456789/5020
dc.identifier.urn	urn:nbn:de:bsz:100-opus-976
dc.language.iso	eng
dc.relation.ispartofseries	Forschung zur Entwicklungsökonomie und -politik / Research in development economics and policy; 2004,1
dc.rights.license	publ-ohne-pod	en
dc.rights.license	publ-ohne-pod	de
dc.rights.uri	http://opus.uni-hohenheim.de/doku/lic_ubh.php
dc.subject	Comparative advantage	en
dc.subject	Rice production	en
dc.subject	Agricultural diversification	en
dc.subject	Trade liberalisation	en
dc.subject	Vietnam	en
dc.subject.ddc	630
dc.subject.gnd	Vietnam	de
dc.subject.gnd	Welthandel	de
dc.subject.gnd	Liberalisierung	de
dc.subject.gnd	Komparative Kosten	de
dc.subject.gnd	Internationale Wettbewerbsfähigkeit	de
dc.subject.gnd	Reiswirtschaft	de
dc.subject.gnd	Diversifikation	de
dc.title	Comparative advantage of Vietnam's rice sector under different liberalisation scenarios: a policy analysis matrix (PAM) study	de
dc.type.dcmi	Text	de
dc.type.dini	WorkingPaper	de
local.access	uneingeschränkter Zugriff	en
local.access	uneingeschränkter Zugriff	de
local.bibliographicCitation.publisherPlace	Universität Hohenheim	de
local.export.bibtex	@techreport{Nguyen2004, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5020}, author = {Nguyen, Manh Hai and Heidhues, Franz}, title = {Comparative advantage of Vietnam's rice sector under different liberalisation scenarios: a policy analysis matrix (PAM) study}, year = {2004}, school = {Universität Hohenheim}, series = {Forschung zur Entwicklungsökonomie und -politik / Research in development economics and policy}, }
local.export.bibtexAuthor	Nguyen, Manh Hai and Heidhues, Franz
local.export.bibtexKey	Nguyen2004
local.export.bibtexType	@techreport
local.faculty.number	2	de
local.institute.number	490	de
local.opus.number	97
local.series.issueNumber	2004,1
local.series.title	Forschung zur Entwicklungsökonomie und -politik / Research in development economics and policy
local.university	Universität Hohenheim	de
local.university.faculty	Faculty of Agricultural Sciences	en
local.university.faculty	Fakultät Agrarwissenschaften	de
local.university.institute	Institute for Agricultural Economics and Social Sciences in the Tropics and Subtropics	en
local.university.institute	Institut für Agrar- und Sozialökonomie in den Tropen und Subtropen	de

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Institut für Tropische Agrarwissenschaften (Hans-Ruthenberg-Institut)
Forschung zur Entwicklungsökonomie und -politik / Research in development economics and policy