This study investigates the impact of trade liberalization policy on the farm-nonfarm balance of labour in rural Vietnam. Using data from the detailed "Vietnam Living Standards Surveys", the researchers provide new empirical evidence of the relationship between the agricultural and non-agricultural sectors. The team finds evidence that the increased use of imported chemical fertilizers – due to trade liberalization  – has a direct impact on labour reallocation, including increased participation in agriculture and reduced participation in nonfarm activities. Based on these findings, the team outlines several recommendations for policy to improve productivity and to remain competitive in the international markets, as Vietnam joins the Trans-Pacific Partnership free trade agreement. Find out more about the research methods, findings and policy recommendations in the following PEP publications: 

Country: 
Vietnam
Project code: 
PMMA-12673
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