PMMA-12673 The Effect of input-trade liberalization on Nonfarm and Farm Labor Participation in Rural Vietnam

Abstract

This paper examines the impact of the trade liberalization of chemical fertilizers on the allocation of labor between nonfarm and farm sectors in rural Vietnam during the period 1993-1998. To do that, we use a panel dataset controlling for fixed effects and instrumenting the volume of chemical fertilizers and the exogenous change in fertilizers' prices is exploited. The study shows that a higher volume of chemical fertilizers reduces the employment of rural households in the nonfarm sector and increases labor participation in farm activities. A larger use of chemical fertilizers would also generate other complementary effects such as a higher demand for organic fertilizers, increased on-farm hired labor, a bigger cultivated area with chemical fertilizers and a larger number of crops grown with chemical fertilizers. Also, we find that a larger use of chemical fertilizers creates larger incentives for on-farm family labor for small landholders compared to those with larger agricultural land, and that the magnitude of the effects is relatively larger for new farmers.

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Members

Project leader: Hoang Xuan Trung

Project researchers: Nguyen Duc Hung | Nga Van Le | Huong Thanh Ho | Linh Dong Thi Thuy

Scientific mentors: Dileni Gunewardena | Luca Tiberti

Journal publication

Authors	Co-Authors	Title of paper	Title of Economic Review	Bibliographic references
Jorge Dávalos	Trung Xuan Hoang, Luca Tiberti	The effect of input-trade liberalisation on farm and non-farm labour in Vietnam	European Review of Agricultural Economics	Volume 47, Issue 1, February 2020, pp. 25–49

Working Papers

	Title	Modified	Size	Comments	Recommendations
	The effect of input-trade liberalization on nonfarm and farm labour participation in rural Vietnam	2016-03-12	2206.56KB	0	0

Policy Briefs

	Title	Modified	Size	Comments	Recommendations
	The effect of input-trade liberalization on farm and non-farm labor participation in rural Vietnam	2016-03-21	337.35KB	0	0

Final report

	Title	Modified	Size	Comments	Recommendations
		2015-12-18	470.44KB	0	0

Proposal

	Title	Modified	Size	Comments	Recommendations
		2014-07-03	369.8KB	0	0