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Tenurial security and agricultural investment: Evidence from Vietnam

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  • Bellemare, Marc F.
  • Chua, Kenn
  • Santamaria, Julieth
  • Vu, Khoa

Abstract

In Vietnam, all lands belong to the state, which assigns usufruct rights to those lands to individuals and households. In 1993, the state gave 20-year usufruct rights to growers of annual crops, and 50-year usufruct rights to growers of perennial crops. In 2013, as the usufruct rights of growers of annual crops were about to expire, the Vietnamese government passed a law—the Land Law of 2013—that extended the usufruct rights of all landowners by 50 years. We exploit this largely unanticipated shock to study the effect of tenurial security on agricultural investment. Using a difference-in-differences design, we find that the Land Law of 2013 is associated with a higher likelihood of investment by growers of annual crops in irrigation technology or soil and water conservation, but not other types of investment. Our results are robust to controlling for endogenous switching from annual to perennial crops, and our data support the parallel trends assumption.

Suggested Citation

  • Bellemare, Marc F. & Chua, Kenn & Santamaria, Julieth & Vu, Khoa, 2020. "Tenurial security and agricultural investment: Evidence from Vietnam," Food Policy, Elsevier, vol. 94(C).
    • Handle: RePEc:eee:jfpoli:v:94:y:2020:i:c:s0306919220300233
    DOI: 10.1016/j.foodpol.2020.101839
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    Cited by:

    1. Cazzuffi, Chiara & McKay, Andy & Perge, Emilie, 2020. "The impact of agricultural commercialisation on household welfare in rural Vietnam," Food Policy, Elsevier, vol. 94(C).
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    3. Peter Warr & Huy Quynh Nguyen, 2023. "Productivity Effects of Viet Nam's Rice Land Restrictions," Working Papers DP-2022-43, Economic Research Institute for ASEAN and East Asia (ERIA).
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    6. Mario A. González‐Corzo, 2020. "Agrarian Policy Changes and the Evolution of Land Tenure in Cuba," Economic Papers, The Economic Society of Australia, vol. 39(3), pages 239-258, September.

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    More about this item

    Keywords

    Land rights; Land tenure; Investment; Tenurial security; Tenurial insecurity;
    All these keywords.

    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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