Rice Yield Gap between Myanmar and Vietnam: A Matter of Price Policy or Public Investment in Technology?

Abstract

This paper examines the rice yield gap between Myanmar and Vietnam, two countries that show a stark contrast in terms of rice production in the past two decades. It considers the impact on yield of price policies and public investments in production technology. While domestic rice prices were once controlled in both countries, no clear deterioration or improvement in terms of trade for rice producers were confirmed in the past two decades. Rather, the widening yield gap in this period might be attributable to differences in technological changes due to public investments. It is implied that Myanmar needs more effective public investments in agriculture to upgrade production technology. Furthermore, the experience of the two countries suggests that delegating the budget to local governments might raise the effectiveness of public investments.