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The Impacts of Farmland Expropriation on Vietnam's Rural Households

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  • Le, Kien
  • Nguyen, My

Abstract

The expropriation of agricultural land to provide new land for industrial and urban expansion, referred to as compulsory acquisition, is prevalent in developing countries. Using Vietnam as a laboratory, this study evaluates the impacts of losing farmland through compulsory acquisition on household welfare and reaches the following findings. A 10 percentage point increase in the proportion of land expropriated results in a 2.2% decrease in household welfare proxied by food expenditure. Besides, politically unconnected and ethnic minority households are disproportionately vulnerable. The adverse welfare effect could take up to 10 years to evaporate. The reduction in household welfare is attributable to the decline in agricultural income and the inability to participate in the non-agricultural labor market. Other aspects of household behavior following compulsory acquisition are also explored, such as saving, social capital, labor, and capital allocation.

Suggested Citation

  • Le, Kien & Nguyen, My, 2019. "The Impacts of Farmland Expropriation on Vietnam's Rural Households," MPRA Paper 101397, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:101397
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    References listed on IDEAS

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    Cited by:

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    2. Le, Kien & Nguyen, My, 2021. "Education and political engagement," International Journal of Educational Development, Elsevier, vol. 85(C).
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    4. Nguyen, My, 2020. "Mask Mandates and COVID-19 Related Symptoms in the US," MPRA Paper 109992, University Library of Munich, Germany.
    5. Le, Kien & Nguyen, My, 2020. "The Impacts of Temperature Shocks on Birth Weight in Vietnam," MPRA Paper 110325, University Library of Munich, Germany.
    6. Le, Kien & Nguyen, My, 2020. "The Impacts of Armed Conflict on Child Health: Evidence from 56 Developing Countries," MPRA Paper 109896, University Library of Munich, Germany.
    7. Tilahun Dires & Derjew Fentie & Yeneneh Hunie & Worku Nega & Mulugeta Tenaw & Sayeh Kassaw Agegnehu & Reinfried Mansberger, 2021. "Assessing the Impacts of Expropriation and Compensation on Livelihood of Farmers: The Case of Peri-Urban Debre Markos, Ethiopia," Land, MDPI, vol. 10(6), pages 1-16, June.

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    More about this item

    Keywords

    Land expropriation; rural households; Vietnam;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy

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