Academic Star Publishing Company

Economics

ISSN: 2155-7950
Journal of Business and Economics

Economic Basis of the Applied Fourth Industrial Revolution on Agricultural Land Allocation and Social Welfare

Nguyen Van Song¹, Nguyen Cong Tiep¹, Dinh van Tien², Thai Van Ha², Nguyen Tat Thang¹, Nguyen Xuan Diep³, Vu Ngoc Huyen¹, Nguyen Xuan Huu⁴, Vuong Thi Khanh Huyen¹, Nguyen Van Hanh⁴

(1. Vietnam National University of Agriculture (VNUA), Vietnam;

2. Ha Noi University of Business and Technology, Vietnam;

3. Thai Nguyen University of Economics & Business Administration, Thai Nguyen, Vietnam;

4. Vietnamese Academy of Forest Sciences (VAFS), Ha Noi, Vietnam)

Abstract: The Fourth Industrial Revolution will change the production, consumption, as well as all aspects of the lives of producers, consumers, and other organizations in the society. Based on theoretical economical and mathematical models, the article demonstrates the impacts of the application of the Fourth Industrial Revolution on farm production, agricultural sector, distribution land resource, and social welfare. The results show that the value of marginal products (VMP) will be increased. The Fourth Industrial Revolution, will help to attract more lands for production, thereby the land price will go up at a slower rate than that of the farm’s marginal product value; as a result, social welfare will also be improved. The land market of Vietnam needs to be ensured by policies and laws to operate in accordance with the rules of the market and sustainability in the coming years.

Key words: application; the Fourth Industrial Revolution; value of marginal product; land; social welfare

JEL code: Q