INTERNATIONAL TRADE AND AGRICULTURAL PRODUCTIVITYEVIDENCES FROM LEAST DEVELOPED COUNTRIES

Received: 18-07-2016

Accepted: 08-10-2016

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Issue: Vol. 14 No. 10 (2016)

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KINH TẾ XÃ HỘI VÀ PHÁT TRIỂN NÔNG THÔN

How to Cite:

Duc, N., & Tuyen, N. (2024). INTERNATIONAL TRADE AND AGRICULTURAL PRODUCTIVITYEVIDENCES FROM LEAST DEVELOPED COUNTRIES. Vietnam Journal of Agricultural Sciences, 14(10), 1597–1607. http://testtapchi.vnua.edu.vn/index.php/vjasvn/article/view/1474

INTERNATIONAL TRADE AND AGRICULTURAL PRODUCTIVITYEVIDENCES FROM LEAST DEVELOPED COUNTRIES

Nguyen Anh Duc (*) 1, 2 , Nguyen Huu Tuyen 2, 3

  • 1 Faculty of Economics and Rural Development, Vietnam National University of Agriculture
  • 2 Centre for Global Food and Resources, University of Adelaide, Adelaide SA 5005, Australia
  • 3 Centre for Informatics and Statistics, Ministry of Agriculture and Rural Development

    • Keywords

    Biến công cụ, các nước kém phát triển, năng suất nông nghiệp, thương mại

    Abstract


    From many perspectives, agricultural production is essential to the economic growth of the least developed countries (LDCs). While international trade is considered one of the main sources of growth, the fact that LDCs rely heavily on primary commodities export and may not benefit significantly from trade raises concerns about the impact of trade on the economic development of LDCs. In this paper, the instrumental variable method was employed to ensure consistency and unbiasedness of the estimates of the impact of trade on agricultural productivity. The resource rents was used as an instrumental variable in determining the export and import indexes, especially in the case of LDCs. The semi-elasticity showed that a one percentage point increase in the terms of trade reduced agricultural productivity growth by approximately 0.23% on average, holding other factors constant. This estimate was statistically significant, and implied that expansion in trade does not improve agricultural productivity in LDCs.

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