Moving Out of Agriculture: Structural Change in Vietnam

55 Pages Posted: 9 Nov 2013

See all articles by Brian McCaig

Brian McCaig

Wilfrid Laurier University - School of Business & Economics

Nina Pavcnik

Dartmouth College - Department of Economics; Centre for Economic Policy Research (CEPR); National Bureau of Economic Research (NBER)

Date Written: November 2013

Abstract

We examine the role of structural change in the economic development of Vietnam from 1990 to 2008. Structural change accounted for a third of the growth in aggregate labor productivity during this period, which averaged 5.1 percent per annum. We discuss the role of reforms in agriculture, enterprises, and international integration in this process. In addition to the drastic move of employment away from agriculture toward services and manufacturing, we also document the movement of workers away from household businesses toward firms in the enterprise sector, and the reallocation of workers from state owned firms toward private domestic and foreign owned firms. Manufacturing experienced particularly rapid growth in labor productivity and a large expansion of employment, as it grew from 8 to 14 percent of the workforce. Changes in trade policy, expansion of employment in foreign owned firms, and the declining role of state owned enterprises robustly contributed toward the changing structure of employment within manufacturing.

Suggested Citation

McCaig, Brian and Pavcnik, Nina, Moving Out of Agriculture: Structural Change in Vietnam (November 2013). NBER Working Paper No. w19616. Available at SSRN: https://ssrn.com/abstract=2352133

Brian McCaig (Contact Author)

Wilfrid Laurier University - School of Business & Economics

Waterloo, Ontario N2L 3C5
Canada

Nina Pavcnik

Dartmouth College - Department of Economics ( email )

6106 Rockefeller Hall
Hanover, NH 03755
United States
603-646-2537 (Phone)
603-646-2122 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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