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Journal of Applied Sciences
  Year: 2016 | Volume: 16 | Issue: 10 | Page No.: 462-469
DOI: 10.3923/jas.2016.462.469
 
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Fiscal Decentralization and Agricultural Field: Empirical Evidence from Vietnam

Diep Pham Thi Hong and Hanh Nguyen Viet

Abstract:
Objective: The purpose of study is to shed more light on the relationship of fiscal decentralization and agricultural field. Materials and Methods: To do so, an analytical model has been established by integrating Cobb-Douglas function into Stochastic frontier model with 2 scenarios were built to determine the relationship between fiscal decentralization and agricultural field, namely; (i) a non-interactive model and (ii) an interactive model and then apply to the context of Vietnam. Result: The results of empirical analysis have indicated that the interactive model was more appreciated and has higher reliability than the non-interactive model in interpreting the relationship of fiscal decentralization and agricultural field. Additionally, fiscal decentralization has an indirect and significant influence on agricultural field through the technical efficiency. Conclusion: Fiscal decentralization was an element that could improve technical efficiency in agricultural sector as whole. However, in order to fiscal decentralization become a factor that has a positive impact on technical efficiency, it needs to be implemented in an appropriate proportion consistent with local needs for every kind of public goods and services.
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How to cite this article:

Diep Pham Thi Hong and Hanh Nguyen Viet, 2016. Fiscal Decentralization and Agricultural Field: Empirical Evidence from Vietnam. Journal of Applied Sciences, 16: 462-469.

DOI: 10.3923/jas.2016.462.469

URL: https://scialert.net/abstract/?doi=jas.2016.462.469

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