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The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam

Author

Listed:
  • Oliver Schulte

    (Leibniz University Hannover)

  • Trung Thanh Nguyen

    (Leibniz University Hannover)

  • Ulrike Grote

    (Leibniz University Hannover)

Abstract

This paper investigates the role of land rental markets in livelihood choices using data from 792 farming households in rural Vietnam. First, we cluster households according to livelihood strategies and estimate the determinants of the respective decision. In a second step, we analyze the contribution of rented land in linking smallholders to output markets. Our results suggest that rented land can provide smallholders with an opportunity to increase their agricultural activities and avoid resorting to less remunerative activities such as agricultural wage labor. Moreover, rented crop area increases the probability of market participation as well as the quantity of sales. Our results point to the need for a further liberalization of land rental markets specifically targeted at households that have been excluded from more remunerative livelihood strategies previously. Supporting these households to have access to the assets required to cultivate the additional area is thus recommended.

Suggested Citation

  • Oliver Schulte & Trung Thanh Nguyen & Ulrike Grote, 2022. "The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization: A Case Study from Rural Vietnam," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(6), pages 2878-2898, December.
    • Handle: RePEc:pal:eurjdr:v:34:y:2022:i:6:d:10.1057_s41287-021-00496-9
    DOI: 10.1057/s41287-021-00496-9
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    Cited by:

    1. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialisation, asset growth and poverty in rural Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 388-416, July.
    2. Menglan Wang & Manh Hung Do, 2023. "Households’ resilience and local commercialization in Thailand," TVSEP Working Papers wp-030, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    3. Manh Hung Do, 2023. "Saving up and diversifying income for a rainy day: Implications for households' resilience strategies and poverty," TVSEP Working Papers wp-033, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    4. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialization and asset growth for poverty reduction: Evidence from panel data for rural Vietnam," TVSEP Working Papers wp-032, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    5. Manh Hung Do, 2023. "The Role of Savings and Income Diversification in Households’ Resilience Strategies: Evidence from Rural Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 353-388, August.

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