Productivity Dynamics and Determinants in Agricultural Enterprises: Implications for Technology-Oriented Development in the Mekong Delta

Abstract

Agricultural enterprises are vital for rural socio -economic development yet face productivity and technology adoption challenges amid global economic integration. This study examines total factor productivity dynamics, technical efficiency, and technological progress for 87 agricultural enterprises from 2016 to 2021. Utilizing firm-level data from the Annual Survey on Enterprises, data envelopment analysis reveals a 6.5% increase in average technical efficiency but a concerning 12.7% annual decline in technological change. Mean total factor productivity also drops by 7.1% annually, indicating significant obstacles to overall productivity growth. The random effect regression results suggest that agricultural cooperatives experience slower technological advancements. Furthermore, being situated near a port and engaging in export activities help enterprises improve productivity. Investments in research and development positively impact total factor productivity changes, suggesting a crucial avenue for enhancing agricultural enterprise performance amidst evolving economic landscapes.