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Does Land Fragmentation Affect Household Livelihood Choice in Rural Vietnam?

Author

Listed:
  • Yen Hai Thi Nguyen

    (Faculty of Real Estate and Resources Economics, National Economics University, Hanoi, Vietnam)

  • Tuyen Quang Tran

    (International School, Vietnam National University, Hanoi, Vietnam)

  • Dung Tuan Hoang
  • Thu Minh Thi Tran
  • Thang Nguyen

Abstract

This paper examines how cropland fragmentation affects livelihood choice among households in Vietnam’s 12 provinces over the 2008–2016 period. Using cluster analysis techniques, we first classify households into various livelihood clusters. Then, employing multinomial logit regression analysis, we quantify how land fragmentation affects livelihood choice. The current research shows that land fragmentation has a positive impact on nonfarm diversification. Households with a higher intensity of fragmentation have a higher likelihood of pursuing a wide range of strategies based on nonfarm self-employment, wage-earning, or remittance sources rather than specialize in cultivation. Our findings suggest that households actively diversify away from agriculture in response to the disadvantages of land fragmentation. Notably, we discover that such coping strategies provide higher incomes than a cultivation-based livelihood.

Suggested Citation

  • Yen Hai Thi Nguyen & Tuyen Quang Tran & Dung Tuan Hoang & Thu Minh Thi Tran & Thang Nguyen, 2023. "Does Land Fragmentation Affect Household Livelihood Choice in Rural Vietnam?," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 256-272, June.
    • Handle: RePEc:nwe:eajour:y:2023:i:2:p:256-272
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    More about this item

    Keywords

    Multinomial logit; Income; Land fragmentation; Livelihood choice; Rural Vietnam;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • 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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