IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v71y2015icp107-130.html
   My bibliography  Save this article

Property Rights and Consumption Volatility: Evidence from a Land Reform in Vietnam

Author

Listed:
  • Kemper, Niels
  • Ha, Luu Viet
  • Klump, Rainer

Abstract

During Vietnam’s transition from a socialist to a market economy, household’s property rights over agricultural land were considerably strengthened through a land certification program. This resulted in active formal credit and land markets, either of which potentially affects consumption levels and volatility. This article evaluates the program impact with respect to consumption outcomes. In particular, it identifies the channel of impact through which improved property rights affect consumption volatility. We find that land certification increases consumption levels for rural households, but also consumption volatility for a subgroup of households identified by an instrument. We show that the certification program affects consumption outcomes of this subgroup through, presumably more risky, credit-based agricultural investment at the intensive margin.

Suggested Citation

  • Kemper, Niels & Ha, Luu Viet & Klump, Rainer, 2015. "Property Rights and Consumption Volatility: Evidence from a Land Reform in Vietnam," World Development, Elsevier, vol. 71(C), pages 107-130.
    • Handle: RePEc:eee:wdevel:v:71:y:2015:i:c:p:107-130
    DOI: 10.1016/j.worlddev.2013.11.004
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X13002465
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.worlddev.2013.11.004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Quy-Toan Do & Lakshmi Iyer, 2003. "Land rights and economic development : evidence from Vietnam," Policy Research Working Paper Series 3120, The World Bank.
    2. Klaus Deininger, 2003. "Land Policies for Growth and Poverty Reduction," World Bank Publications - Books, The World Bank Group, number 15125, December.
    3. Boucher, Stephen R. & Barham, Bradford L. & Carter, Michael R., 2005. "The Impact of "Market-Friendly" Reforms on Credit and Land Markets in Honduras and Nicaragua," World Development, Elsevier, vol. 33(1), pages 107-128, January.
    4. Michael R. Carter & Pedro Olinto, 2003. "Getting Institutions “Right” for Whom? Credit Constraints and the Impact of Property Rights on the Quantity and Composition of Investment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 173-186.
    5. Máximo Torero & Erica Field, 2005. "Impact of Land Titles over Rural Households," OVE Working Papers 0705, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    6. Stephen R. Boucher & Michael R. Carter & Catherine Guirkinger, 2008. "Risk Rationing and Wealth Effects in Credit Markets: Theory and Implications for Agricultural Development," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 409-423.
    7. Klaus Deininger & Songqing Jin, 2008. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 67-101, February.
    8. Kemper, Niels & Klump, Rainer & Schumacher, Heiner, 2011. "Representation of property rights and credit market outcomes: Evidence from a land reform in Vietnam," Proceedings of the German Development Economics Conference, Berlin 2011 45, Verein für Socialpolitik, Research Committee Development Economics.
    9. Angus Deaton & Salman Zaidi, 2002. "Guidelines for Constructing Consumption Aggregates for Welfare Analysis," World Bank Publications, The World Bank, number 14101, April.
    10. Timothy J. Besley & Konrad B. Burchardi & Maitreesh Ghatak, 2012. "Incentives and the De Soto Effect," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 127(1), pages 237-282.
    11. Siamwalla, Ammar, et al, 1990. "The Thai Rural Credit System: Public Subsidies, Private Information, and Segmented Markets," The World Bank Economic Review, World Bank, vol. 4(3), pages 271-295, September.
    12. Boucher, Stephen R. & Carter, Michael R. & Guirkinger, Catherine, 2008. "AJAE Appendix: Risk Rationing and Wealth Effects in Credit Markets: Theory and Implications for Agriculture Development," American Journal of Agricultural Economics APPENDICES, Agricultural and Applied Economics Association, vol. 90(2), pages 1-6.
    13. Pender, John L. & Kerr, John M., 1999. "The effects of land sales restrictions: evidence from south India," Agricultural Economics, Blackwell, vol. 21(3), pages 279-294, December.
    14. Catalina Amuedo-Dorantes & Susan Pozo, 2011. "Remittances and Income Smoothing," American Economic Review, American Economic Association, vol. 101(3), pages 582-587, May.
    15. Ravallion, Martin & van de Walle, Dominique, 2008. "Does rising landlessness signal success or failure for Vietnam's agrarian transition?," Journal of Development Economics, Elsevier, vol. 87(2), pages 191-209, October.
    16. Minot, Nicholas & Baulch, Bob & Epperecht, Michael, 2006. "Poverty and inequality in Vietnam: spatial patterns and geographic determinants," Research reports 148, International Food Policy Research Institute (IFPRI).
    17. Christopher Woodruff, 2001. "Review of de Soto's The Mystery of Capital," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1215-1223, December.
    18. Michael Roth & Richard Barrows & Michael Carter & Don Kanel, 1989. "Land Ownership Security and Farm Investment: Comment," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(1), pages 211-214.
    19. 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, December.
    20. Gershon Feder & Tongroj Onchan, 1987. "Land Ownership Security and Farm Investment in Thailand," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(2), pages 311-320.
    21. Place, Frank, 2009. "Land Tenure and Agricultural Productivity in Africa: A Comparative Analysis of the Economics Literature and Recent Policy Strategies and Reforms," World Development, Elsevier, vol. 37(8), pages 1326-1336, August.
    22. Catherine Guirkinger & Stephen R. Boucher, 2008. "Credit constraints and productivity in Peruvian agriculture," Agricultural Economics, International Association of Agricultural Economists, vol. 39(3), pages 295-308, November.
    23. Quy-Toan Do & Lakshmi Iyer, 2008. "Land Titling and Rural Transition in Vietnam," Economic Development and Cultural Change, University of Chicago Press, vol. 56(3), pages 531-579, April.
    24. Feder, Gershon & Feeny, David, 1991. "Land Tenure and Property Rights: Theory and Implications for Development Policy," The World Bank Economic Review, World Bank, vol. 5(1), pages 135-153, January.
    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. Vu, Ha Thu & Goto, Daisaku, 2020. "Does awareness about land tenure security (LTS) increase investments in agriculture? Evidence from rural households in Vietnam," Land Use Policy, Elsevier, vol. 97(C).
    2. Conor Carney & Ryan Abman, 2018. "Land rights, agricultural productivity, and deforestation in Vietnam," WIDER Working Paper Series 88, World Institute for Development Economic Research (UNU-WIDER).
    3. Dong, Jiayun & Liang, Wenyuan & Fu, Yimin & Liu, Weiping & Managi, Shunsuke, 2021. "Impact of devolved forest tenure reform on formal credit access for households: Evidence from Fujian, China," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 486-498.
    4. Mo, Jiawei, 2018. "Land financing and economic growth: Evidence from Chinese counties," China Economic Review, Elsevier, vol. 50(C), pages 218-239.
    5. Jian Cheng & Jiangmeng Zhao, 2023. "How Does Land Monopoly Reduce Consumption Levels? Evidence from China," Land, MDPI, vol. 12(9), pages 1-20, August.
    6. Peter Narh & Cosmas Kombat Lambini & Matthew Sabbi & Van Dien Pham & Trung Thanh Nguyen, 2016. "Land Sector Reforms in Ghana, Kenya and Vietnam: A Comparative Analysis of Their Effectiveness," Land, MDPI, vol. 5(2), pages 1-17, March.
    7. Lei Xu & Shixiang Chen & Shuliu Tian, 2022. "The Mechanism of Land Registration Program on Land Transfer in Rural China: Considering the Effects of Livelihood Security and Agricultural Management Incentives," Land, MDPI, vol. 11(8), pages 1-25, August.
    8. Ryan Abman & Conor Carney, 2018. "Land rights, agricultural productivity, and deforestation in Vietnam," WIDER Working Paper Series wp-2018-88, World Institute for Development Economic Research (UNU-WIDER).
    9. Gao, Xuwen & Shi, Xinjie & Fang, Shile, 2021. "Property rights and misallocation: Evidence from land certification in China," World Development, Elsevier, vol. 147(C).
    10. Ayalew, Hailemariam & Admasu, Yeshwas & Chamberlin, Jordan, 2021. "Is land certification pro-poor? Evidence from Ethiopia," Land Use Policy, Elsevier, vol. 107(C).
    11. Zhang, Yixing & Jia, Qinmin & Chen, Chen, 2021. "Risk attitude, financial literacy and household consumption: Evidence from stock market crash in China," Economic Modelling, Elsevier, vol. 94(C), pages 995-1006.
    12. Abman, Ryan & Carney, Conor, 2020. "Land rights, agricultural productivity, and deforestation," Food Policy, Elsevier, vol. 94(C).
    13. Li, Chengyou & Jiao, Yong & Sun, Tao & Liu, Anran, 2021. "Alleviating multi-dimensional poverty through land transfer: Evidence from poverty-stricken villages in China," China Economic Review, Elsevier, vol. 69(C).
    14. Dong, Jiayun & Liang, Wenyuan & Liu, Weiping & Liu, Jinlong & Managi, Shunsuke, 2020. "Does forestland possession enhance households’ access to credit?—Examining China’s forestland mortgage policy," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 78-87.

    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. Kemper, Niels & Klump, Rainer & Schumacher, Heiner, 2011. "Representation of property rights and credit market outcomes: Evidence from a land reform in Vietnam," Proceedings of the German Development Economics Conference, Berlin 2011 45, Verein für Socialpolitik, Research Committee Development Economics.
    2. Gong, Tengda, 2022. "Economic Impacts of Land Security Improvements: Investment Incentives versus Rental Incentives," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322094, Agricultural and Applied Economics Association.
    3. Ufer, Danielle & Ortega, David L., 2022. "Right on the Money? U.S. Farmers Have a Varied Understanding of Consumer Preferences and Attitudes over Animal Welfare and Biotechnology," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322269, Agricultural and Applied Economics Association.
    4. Markussen, Thomas & Tarp, Finn, 2014. "Political connections and land-related investment in rural Vietnam," Journal of Development Economics, Elsevier, vol. 110(C), pages 291-302.
    5. Thomas Vendryes, 2014. "Peasants Against Private Property Rights: A Review Of The Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 28(5), pages 971-995, December.
    6. Conning, Jonathan & Udry, Christopher, 2007. "Rural Financial Markets in Developing Countries," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 56, pages 2857-2908, Elsevier.
    7. Emran,M. Shahe & Shilpi,Forhad J. & Emran,M. Shahe & Shilpi,Forhad J., 2015. "Do land market restrictions hinder structural change in a rural economy ? evidence from Sri Lanka," Policy Research Working Paper Series 7525, The World Bank.
    8. Thomas Markussen & Finn Tarp & Katleen Van den Broeck, 2009. "The Forgotten Property Rights: Restrictions on Land Use in Vietnam," Discussion Papers 09-21, University of Copenhagen. Department of Economics.
    9. Deininger, Klaus & Goyal, Aparajita, 2012. "Going digital: Credit effects of land registry computerization in India," Journal of Development Economics, Elsevier, vol. 99(2), pages 236-243.
    10. Xu Guangdong, 2013. "Property Rights, Law, and Economic Development," The Law and Development Review, De Gruyter, vol. 6(1), pages 117-142, July.
    11. Marsh, Sally P. & MacAulay, T. Gordon & Van Hung, Pham (ed.), 2006. "Agricultural Development and Land Policy in Vietnam," Monographs, Australian Centre for International Agricultural Research, number 114071.
    12. Markussen, Thomas & Tarp, Finn, 2011. "Political connections and investment in rural Vietnam," 2011 ASAE 7th International Conference, October 13-15, Hanoi, Vietnam 291321, Asian Society of Agricultural Economists (ASAE).
    13. Deininger, Klaus, 2010. "Towards sustainable systems of land administration: Recent evidence and challenges for Africa," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 5(1), pages 1-22, September.
    14. Peter Narh & Cosmas Kombat Lambini & Matthew Sabbi & Van Dien Pham & Trung Thanh Nguyen, 2016. "Land Sector Reforms in Ghana, Kenya and Vietnam: A Comparative Analysis of Their Effectiveness," Land, MDPI, vol. 5(2), pages 1-17, March.
    15. Thomas Markussen, 2015. "Land issues in Vietnam 2006-14: Markets, property rights, and investment," WIDER Working Paper Series wp-2015-088, World Institute for Development Economic Research (UNU-WIDER).
    16. Diana Fletschner & Catherine Guirkinger & Steve Boucher, 2010. "Risk, Credit Constraints and Financial Efficiency in Peruvian Agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 981-1002.
    17. Thomas Markussen, 2015. "Land issues in Vietnam 2006-14: Markets, property rights, and investment," WIDER Working Paper Series 088, World Institute for Development Economic Research (UNU-WIDER).
    18. Kvartiuk, Vasyl & Herzfeld, Thomas, 2019. "Welfare effects of land market liberalization scenarios in Ukraine: Evidence-based economic perspective," IAMO Discussion Papers 287762, Institute of Agricultural Development in Transition Economies (IAMO).
    19. Balana, Bedru B. & Mekonnen, Dawit & Haile, Beliyou & Hagos, Fitsum & Yimam, Seid & Ringler, Claudia, 2022. "Demand and supply constraints of credit in smallholder farming: Evidence from Ethiopia and Tanzania," World Development, Elsevier, vol. 159(C).
    20. Markussen, Thomas & Tarp, Finn & Van Den Broeck, Katleen, 2011. "The Forgotten Property Rights: Evidence on Land Use Rights in Vietnam," World Development, Elsevier, vol. 39(5), pages 839-850, May.

    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:eee:wdevel:v:71:y:2015:i:c:p:107-130. 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    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.