IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/98171.html
   My bibliography  Save this paper

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/98171/1/MPRA_paper_98171.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
    2. Ciaian, Pavel & Guri, Fatmir & Rajcaniova, Miroslava & Drabik, Dusan & Paloma, Sergio, 2015. "Land Fragmentation, Production Diversification, and Food Security: A Case Study from Rural Albania," 2015 Conference, August 9-14, 2015, Milan, Italy 211539, International Association of Agricultural Economists.
    3. Tran Quang Tuyen, 2015. "Socio-Economic Determinants of Household Income among Ethnic Minorities in the North-West Mountains, Vietnam," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 17(1), pages 139-159, June.
    4. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57643, University Library of Munich, Germany.
    5. Finan, Frederico & Sadoulet, Elisabeth & de Janvry, Alain, 2002. "Measuring the Poverty Reduction Potential of Land in Rural Mexico," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt6xg1q0dg, Department of Agricultural & Resource Economics, UC Berkeley.
    6. Tuyen Quang Tran & Son Hong Nguyen & Huong Van Vu & Viet Quoc Nguyen, 2015. "A note on poverty among ethnic minorities in the Northwest region of Vietnam," Post-Communist Economies, Taylor & Francis Journals, vol. 27(2), pages 268-281, June.
    7. Pham Van Hung & T. Gordon MacAulay & Sally P. Marsh, 2007. "The economics of land fragmentation in the north of Vietnam ," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 195-211, June.
    8. Finan, Frederico & Sadoulet, Elisabeth & de Janvry, Alain, 2005. "Measuring the poverty reduction potential of land in rural Mexico," Journal of Development Economics, Elsevier, vol. 77(1), pages 27-51, June.
    9. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413, October.
    10. Martin Ravallion & Dominique van de Walle, 2008. "Land in Transition : Reform and Poverty in Rural Vietnam," World Bank Publications - Books, The World Bank Group, number 6433.
    11. Quang Tran, Tuyen, 2012. "A review on the link between nonfarm activities, land and rural livelihoods in Vietnam and developing countries," MPRA Paper 55850, University Library of Munich, Germany, revised 17 Nov 2013.
    12. Thomas Markussen & Finn Tarp & Do Huy Thiep & Nguyen Do Anh Tuan, 2016. "Inter- and intra-farm land fragmentation in Vietnam," WIDER Working Paper Series 011, World Institute for Development Economic Research (UNU-WIDER).
    13. Nguyen, Thanh Viet & Tran, Tuyen Quang, 2018. "Forestland and rural household livelihoods in the North Central Provinces, Vietnam," Land Use Policy, Elsevier, vol. 79(C), pages 10-19.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Trung X. Hoang & Nga V. T. Le, 2021. "Natural disasters and risk aversion: Evidence from Vietnam," Natural Resources Forum, Blackwell Publishing, vol. 45(3), pages 211-229, August.
    2. Do, Manh Hung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 157-173.
    3. Przemysław Leń & Michał Maciąg & Monika Siejka & Klaudia Maciąg & Katarzyna Kocur-Bera & Jacek Rapiński, 2024. "A New Method for Assessing Land Consolidation Urgency, including Market Value," Sustainability, MDPI, vol. 16(2), pages 1-28, January.
    4. Wang, Weiwen & Gong, Jian & Wang, Ying & Shen, Yang, 2021. "Exploring the effects of rural site conditions and household livelihood capitals on agricultural land transfers in China," Land Use Policy, Elsevier, vol. 108(C).
    5. Tran, Tuyen Quang & Vu, Huong Van, 2020. "The pro-poor impact of non-crop livelihood activities in rural Vietnam: A panel data quantile regression analysis," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 348-362.
    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).
    9. Tuyen Quang Tran & Huong Van Vu, 2021. "The impact of land fragmentation on food security in the North Central Coast, Vietnam," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 8(2), pages 327-345, May.
    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. 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.
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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).
    19. 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).
    20. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tran, Tuyen Quang & Vu, Huong Van, 2019. "Land fragmentation and household income: First evidence from rural Vietnam," Land Use Policy, Elsevier, vol. 89(C).
    2. Van Hoang, Cuong & Quang Tran, Tuyen & Hai Thi Nguyen, Yen & Duc Nguyen, Kien, 2019. "Is landholding a potential barrier to adopting profitable livelihoods in the Mekong Delta region in Vietnam ?," MPRA Paper 95936, University Library of Munich, Germany, revised 10 Feb 2019.
    3. Tuyen Quang Tran & Huong Van Vu, 2021. "The impact of land fragmentation on food security in the North Central Coast, Vietnam," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 8(2), pages 327-345, May.
    4. Yen H. T. Nguyen & Tuyen Q. Tran & Dung T. Hoang & Thu M. T. Tran & Trung T. Nguyen, 2023. "Land quality, income, and poverty among rural households in the North Central Region, Vietnam," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 150-172, June.
    5. Tran, Duc & Vu, Ha Thu & Goto, Daisaku, 2022. "Agricultural land consolidation, labor allocation and land productivity: A case study of plot exchange policy in Vietnam," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 455-473.
    6. Cuong Viet Nguyen & Tuyen Quang Tran & Huong Vu, 2017. "Ethnic Minorities in Northern Mountains of Vietnam: Employment, Poverty and Income," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(1), pages 93-115, October.
    7. Chiwuzulum Odozi, John & Uwaifo Oyelere, Ruth, 2024. "Land Access and Poverty among Agricultural Households in Nigeria," IZA Discussion Papers 17230, Institute of Labor Economics (IZA).
    8. Cocchi, Horacio & Bravo-Ureta, Boris E. & Quiroga, Ricardo E., 2004. "Farm Benefits And Natural Resource Projects In Honduras And El Salvador," 2004 Annual meeting, August 1-4, Denver, CO 20328, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. Odozi, John Chiwuzulum & Uwaifo Oyel, Ruth, 2024. "Land Access and Poverty among Agricultural Households in Nigeria," GLO Discussion Paper Series 1479, Global Labor Organization (GLO).
    10. MacDonald, Peter, 2013. "Labour substitution and the scope for military outsourcing," MPRA Paper 46688, University Library of Munich, Germany.
    11. Shi, Wei & Tang, Yinuo, 2015. "Cultural similarity as in-group favoritism: The impact of religious and ethnic similarities on alliance formation and announcement returns," Journal of Corporate Finance, Elsevier, vol. 34(C), pages 32-46.
    12. Verner, Dorte, 2005. "Poverty in rural and semi-urban Mexico during 1992-2002," Policy Research Working Paper Series 3576, The World Bank.
    13. Hong, Yan-Zhen & Chang, Hung-Hao & Dai, Yong-Wu, 2018. "Is deregulation of forest land use rights transactions associated with economic well-being and labor allocation of farm households? Empirical evidence in China," Land Use Policy, Elsevier, vol. 75(C), pages 694-701.
    14. Ming Liu & Sumner LaCroix, 2011. "The Impact of Stronger Property Rights in Pharmaceuticals on Innovation in Developed and Developing Countries," Working Papers 201116, University of Hawaii at Manoa, Department of Economics.
    15. Jennifer M. Alix-Garcia & Elizabeth N. Shapiro & Katharine R. E. Sims, 2012. "Forest Conservation and Slippage: Evidence from Mexico’s National Payments for Ecosystem Services Program," Land Economics, University of Wisconsin Press, vol. 88(4), pages 613-638.
    16. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    17. Vranken, Liesbet & Macours, Karen & Noev, Nivelin & Swinnen, Johan F.M., 2007. "Property Rights Imperfections, Asset Allocation, and Welfare: Co-Ownership in Bulgaria," 104th Seminar, September 5-8, 2007, Budapest, Hungary 7795, European Association of Agricultural Economists.
    18. Gersbach, Hans & Siemers, Lars-H. R., 2010. "Land Reforms And Economic Development," Macroeconomic Dynamics, Cambridge University Press, vol. 14(4), pages 527-547, September.
    19. Liu, Min & Huang, Jikun & Dries, Liesbeth & Heijman, Wim & Zhu, Xueqin, 2020. "How does land tenure reform impact upon pastoral livestock production? An empirical study for Inner Mongolia, China," China Economic Review, Elsevier, vol. 60(C).
    20. Verner, Dorte, 2008. "Making poor Haitians count--poverty in rural and urban Haiti based on the first household survey for Haiti," Policy Research Working Paper Series 4571, The World Bank.

    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:98171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.