Determinants of agricultural technology changes: Evidence from rice-cultivating households in Vietnam

Kien, Nguyen Duc (2024) Determinants of agricultural technology changes: Evidence from rice-cultivating households in Vietnam. ACTA OECONOMICA, 74 (3). pp. 405-426. ISSN 0001-6373

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Abstract

We investigated the determinants of changes in agricultural technology in Vietnamese rice-growing households. The double-hurdle estimation developed in this study proved to be an efficient method for determining how and to what extent changes in agricultural technology had been influenced by various factors while also allowing correlation between farmers' choices. We found evidence of a persistent increase in the use of improved seeds and machinery. In contrast, the previous upward trend in the use of fertilisers and pesticides was recently reversed. Farmers' decisions to adopt and use these four agricultural technologies are highly correlated with farm size, input and output prices, and macroeconomic conditions. Our findings also confirm a simultaneous relationship between the decisions to apply agricultural practices. When promoting new agricultural technologies, follow-up policy interventions should account for these characteristics of individual smallholders' decisions.

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