Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283450 
Year of Publication: 
2023
Series/Report no.: 
TVSEP Working Paper No. WP-031
Publisher: 
Leibniz Universität Hannover, Thailand Vietnam Socio Economic Panel (TVSEP), Hannover
Abstract: 
The use of the internet is growing rapidly and has become an engine for economic development. However, few studies have examined the impact of internet use on agricultural production, and the results are not yet conclusive. Employing a dataset of more than 2,000 observations in rural Vietnam, our study analyses the impact of internet use on agricultural productivity using the heteroskedasticity-based instrument approach suggested by Lewbel (2012) and examines the heterogeneity and distribution of the impact using quantile regressions. Our results show that internet use has significant and positive effects on agricultural productivity. However, these effects are heterogeneous across population groups. The positive effects of internet use are stronger for households with a lower level of education, with a young and female head, and from ethnic minorities. The benefits are also found to be skewed towards the group of farmers at the bottom of the productivity distribution. Therefore, we propose facilitating the diffusion of the internet, since it not only boosts agricultural productivity, but also reduces productivity inequality. In addition, we recommend promoting rural education, supporting local markets, investing more in irrigation systems, and facilitating farm mechanisation.
Subjects: 
Rural household
Instrumental variable
Quantile regression
Vietnam
JEL: 
Q11
D63
O30
Document Type: 
Working Paper

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