Agricultural productivity, economic growth and poverty alleviation evidence from Vietnam

Abstract

Vietnam is one of the fastest-growing economies in Southeast Asia, and the agriculture sector has played a vital role in the country’s economic development. Vietnam’s economy has undergone significant transformations since the economic reforms of 1986, and the agricultural sector has been critical in this process. However, the extent to which agricultural productivity has contributed to overall economic growth and poverty alleviation remains an open question. This thesis explores the relationship between agricultural productivity and economic growth and poverty reduction in Vietnam from 1986 to 2018. The research focuses on three primary areas: calculating total factor productivity growth in the agricultural sector, evaluating the impact of agricultural productivity on economic growth, and determining the effect of agricultural productivity on poverty reduction. Based on the study’s findings, this thesis offers policymakers and researchers at national and provincial levels in Vietnam policy recommendations to promote sustainable and inclusive agricultural development, contributing to poverty reduction and economic growth. Key areas of focus should include investing in technological progress, improving technical efficiency, promoting economies of scale, mechanising agriculture and fostering a supportive policy environment. These policies have positive spillover effects on the economy and should be complemented by efforts to improve health and education outcomes, attract foreign investment, promote exports and maintain stable inflation rates. Additionally, policies that promote agricultural productivity and investment, support rural migration, increase public investment in infrastructure and create non-agricultural job opportunities are essential for reducing poverty rates and promoting economic diversification. Finally, the study identifies some limitations and areas for future research. These include analysing external factors, such as climate change and government policies; expanding the analysis to other sectors or countries; exploring the channels through which agricultural productivity affects economic growth; utilising more comprehensive datasets; and examining the effects of other factors like income inequality, political stability and cultural factors on poverty reduction.

Date of Thesis submission	2023
Original language	English
Awarding Institution	Western Sydney University
Supervisor	Maria Estela Varua (Supervisor) & Neil Perry (Supervisor)