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The economics of land fragmentation in the north of Vietnam

  • Van Hung, Pham
  • MacAulay, T. Gordon
  • Marsh, Sally P.
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    Land fragmentation, where a single farm has a number of parcels of land, is a common feature of agriculture in many countries, especially in developing countries. In Vietnam, land fragmentation is common, especially in the north. For the whole country, there are about 75 million parcels of land, an average of seven to eight plots per farm household. Such fragmentation can be seen to have negative and positive benefits for farm households and the community generally. Comparative statics analysis and analysis of survey data have led to the conclusion that small-sized farms are likely to be more fragmented, and that fragmentation had a negative impact on crop productivity and increased family labour use and other money expenses. Policies which allow the appropriate opportunity cost of labour to be reflected at the farm level may provide appropriate incentives to trigger farm size change and land consolidation. Policies which tip the benefits in favour of fewer and larger plots, such as strong and effective research and development, an active extension system and strong administrative management, may also lead to land consolidation.

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    File URL: http://purl.umn.edu/118327
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    Article provided by Australian Agricultural and Resource Economics Society in its journal Australian Journal of Agricultural and Resource Economics.

    Volume (Year): 51 (2007)
    Issue (Month): 2 (June)
    Pages:

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    Handle: RePEc:ags:aareaj:118327
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    1. Rachel Sabates-Wheeler, 2002. "Consolidation initiatives after land reform: responses to multiple dimensions of land fragmentation in Eastern European agriculture," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 1005-1018.
    2. Quy-Toan Do & Lakshmi Iyer, 2003. "Land rights and economic development : evidence from Vietnam," Policy Research Working Paper Series 3120, The World Bank.
    3. Nguyen, Tin & Cheng, Enjiang & Findlay, Christopher, 1996. "Land fragmentation and farm productivity in China in the 1990s," China Economic Review, Elsevier, vol. 7(2), pages 169-180.
    4. Guang Wan & Enjiang Cheng, 2001. "Effects of land fragmentation and returns to scale in the Chinese farming sector," Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 183-194.
    5. Ravallion, Martin & Van der Walle, Dominique, 2001. "Breaking up the collective farm : welfare outcomes of Vietnam's massive land privatization," Policy Research Working Paper Series 2710, The World Bank.
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