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Breaking up the collective farm : welfare outcomes of Vietnam's massive land privatization

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  • Ravallion, Martin
  • Van der Walle, Dominique

Abstract

The decollectivization of agriculture in Vietnam was a crucial step in the country's transition to a market economy. But the assignment of land use rights had to be decentralized, and local cadres ostensibly had the power to corrupt this process. The authors assess the realized land allocationagainst explicit counterfactuals, including the simulated allocation implied by a competitive market-based privatization. The authors find that 95-99 percent of maximum aggregate consumption (depending on the region) was realized by a land allocation that reduced overall inequality, with the poorest absolutely better off. They attribute this outcome to initial conditions at the time of reform and actions by the center to curtail the power of local elites.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2710.

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Date of creation: 30 Nov 2001
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Handle: RePEc:wbk:wbrwps:2710

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Keywords: Banks&Banking Reform; Environmental Economics&Policies; Municipal Housing and Land; Land Use and Policies; Water Conservation; Environmental Economics&Policies; Forestry; Urban Housing; Rural Land Policies for Poverty Reduction; Land Use and Policies;

References

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  1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  2. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
  3. Jyotsna Jalan & Martin Ravallion, 1998. "Geographic Poverty Traps?," Boston University - Institute for Economic Development 86, Boston University, Institute for Economic Development.
  4. Dilip Mookherjee & Pranab K. Bardhan, 2000. "Capture and Governance at Local and National Levels," American Economic Review, American Economic Association, vol. 90(2), pages 135-139, May.
  5. Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers 121, World Bank - Living Standards Measurement.
  6. Pingali, Prabhu L & Xuan, Vo-Tong, 1992. "Vietnam: Decollectivization and Rice Productivity Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 40(4), pages 697-718, July.
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Citations

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Cited by:
  1. Vasco Molini & Guanghua Wan, 2008. "Discovering sources of inequality in transition economies: a case study of rural Vietnam," Economic Change and Restructuring, Springer, vol. 41(1), pages 75-96, March.
  2. Van der Walle, Dominique & Cratty, Dorothyjean, 2003. "Is the emerging nonfarm market economy the route out of poverty in Vietnam?," Policy Research Working Paper Series 2950, The World Bank.
  3. Deininger, Klaus & Songqing Jin, 2003. "Land sales and rental markets in transition - evidence from rural Viet Nam," Policy Research Working Paper Series 3013, The World Bank.
  4. Ravallion, Martin & Van der Walle, Dominique, 2003. "Land allocation in Vietnam's agrarian transition," Policy Research Working Paper Series 2951, The World Bank.
  5. Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
  6. Eric Edmonds & Nina Pavcnik, 2002. "Does Globalization Increase Child Labor? Evidence from Vietnam," NBER Working Papers 8760, National Bureau of Economic Research, Inc.
  7. Klaus Deininger, 2002. "Agrarian reforms in Eastern European countries: lessons from international experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 987-1003.
  8. Van Hung, Pham & MacAulay, T. Gordon & Marsh, Sally P., 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), June.

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