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The impact of land fragmentation on household income: Evidence from rural Vietnam

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  • Quang Tran, Tuyen
  • Van Vu, Huong

Abstract

Our study provides evidence that land fragmentation has negative consequences for household income, possibly because of its negative effects on crop income in ruralVietnam. Notably, using the Instrumental Variables (IV) method, we find that the negative effect is much greater after addressing the endogeneity of land fragmentation. IV analysis, therefore, suggests that a conventional approach which often uses the Ordinary Least Squares (OLS) method is likely to underestimate the impact of land fragmentation on rural households. Also, the finding implies that reducing land fragmentation would minimize its negative consequences for household income by reducing its negative effect on crop income.

Suggested Citation

  • Quang Tran, Tuyen & Van Vu, Huong, 2019. "The impact of land fragmentation on household income: Evidence from rural Vietnam," MPRA Paper 98171, University Library of Munich, Germany, revised 2019.
    • Handle: RePEc:pra:mprapa:98171
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    References listed on IDEAS

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    6. 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.
    7. Tzong-Haw Lee & Brian Lee & Yi-Ju Su & Hung-Hao Chang, 2021. "Are There Any Undesired Effects of Anti-Land Fragmentation Programs on Farm Production Practices and Farm Input Use?," Land, MDPI, vol. 10(2), pages 1-13, February.
    8. Nam, Pham Phuong & Thanh Huyen, Phan Thi & Van Ha, Pham, 2021. "Factors affecting the management of public agricultural land fund in Gia Lam District, Hanoi City, Vietnam," Land Use Policy, Elsevier, vol. 101(C).
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    10. Fei, Rilong & Lin, Ziyi & Chunga, Joseph, 2021. "How land transfer affects agricultural land use efficiency: Evidence from China’s agricultural sector," Land Use Policy, Elsevier, vol. 103(C).
    11. Ruishi Si & Yumeng Yao & Xueqian Zhang & Qian Lu & Noshaba Aziz, 2022. "Exploring the Role of Contiguous Farmland Cultivation and Adoption of No-Tillage Technology in Improving Transferees’ Income Structure: Evidence from China," Land, MDPI, vol. 11(4), pages 1-25, April.
    12. Shukun Wang & Dengwang Li & Tingting Li & Changquan Liu, 2021. "Land Use Transitions and Farm Performance in China: A Perspective of Land Fragmentation," Land, MDPI, vol. 10(8), pages 1-22, July.
    13. Weiwei Wang & Zhihai Yang & Xiangqun Gu & Amin Mugera & Ning Yin, 2024. "How Farm Machinery Rental Services and Off-Farm Work Affect Household Income in China," Agriculture, MDPI, vol. 14(10), pages 1-16, September.
    14. Jie Zhang & Meiqiu Chen & Chang Huang & Zhaohao Lai, 2022. "Labor Endowment, Cultivated Land Fragmentation, and Ecological Farming Adoption Strategies among Farmers in Jiangxi Province, China," Land, MDPI, vol. 11(5), pages 1-17, May.
    15. Mallawaarachchi, Thilak & Rahut, Dil Bahadur, 2023. "Realising rural economic transformation: Pathways to inclusive and sustainable prosperity in post-COVID-19 Asia," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1076-1082.
    16. Tran, Tuyen & Vu, Huong, 2019. "Heterogeneous effects of livelihood strategies on household well-being: An analysis using unconditional quantile regression with fixed effects," MPRA Paper 103849, University Library of Munich, Germany, revised 20 Jan 2020.
    17. Chau Trinh Nguyen & Frank Scrimgeour, 2022. "Measuring the impact of climate change on agriculture in Vietnam: A panel Ricardian analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 37-51, January.
    18. Duyen Dang Thi Thuy, 2023. "Energy and Agricultural Development in the Red River Delta Provinces, Vietnam," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 216-224, July.
    19. Xu, Weiyi & Jin, Xiaobin & Liu, Jing & Zhou, Yinkang, 2021. "Analysis of influencing factors of cultivated land fragmentation based on hierarchical linear model: A case study of Jiangsu Province, China," Land Use Policy, Elsevier, vol. 101(C).
    20. Bui, Quang Nhat & Hoang, Trung Xuan & Nguyen, Minh Khac & Nguyen, Trung Tien, 2020. "Land fragmentation, women empowerment and school dropout of children in Vietnam," Land Use Policy, Elsevier, vol. 97(C).
    21. Xue Wang, 2022. "Changes in Cultivated Land Loss and Landscape Fragmentation in China from 2000 to 2020," Land, MDPI, vol. 11(5), pages 1-16, May.

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    More about this item

    Keywords

    Cropland; Endonegeity; Land law 1993; Land reform; Fragmentation; Household income; rural Vietnam;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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