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Land quality, income, and poverty among rural households in the North Central Region, Vietnam

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  • Yen H. T. Nguyen
  • Tuyen Q. Tran
  • Dung T. Hoang
  • Thu M. T. Tran
  • Trung T. Nguyen

Abstract

While the role of agricultural land size in rural Vietnam is well established for rural livelihoods, no evidence for the importance of land quality has been provided thus far in the literature. In the current study of the North Central Region of Vietnam, we examine how land quality affects crop income, total income, and poverty using secondary data from a sample of 2,468 households. In particular, we used an instrumental variable method to address the potential endogeneity of land quality. We provide the first evidence that land quality increases local household income and the likelihood of escaping poverty. The finding is robust even after accounting for the endogeneity of land quality and controlling for various important household characteristics. Notably, we show the mechanism by which land quality positively affects income and poverty reduction through its positive effect on crop income. Also, our study reveals that land fragmentation is negatively linked with land quality. This could be explained by the fact that fragmented land receives less investment (e.g., fertilizers or irrigation), resulting in lower land quality. The study offers a useful implication that reducing fragmentation may help local households invest more in land, thereby increasing crop income, which in turn improves their economic well‐being. 尽管越南农村农业用地规模对农村生计的作用已得到充分证实,但迄今为止,文献尚未提供有关土地质量重要性的证据。本研究聚焦于越南中北部地区,使用来自2,468户家庭样本的次级数据,研究了土地质量如何影响作物收入、总收入和贫困。特别地,我们使用工具变量法(IV)来研究土地质量的潜在内生性。我们发现,土地质量增加了地方家庭收入、提高了摆脱贫困的可能性。即使在考虑了土地质量的内生性并控制了不同的重要家庭特征之后,这一发现也是稳健的。值得注意的是,我们展示了一项机制,在该机制中,土地质量通过其对作物收入的积极影响而对收入和减贫产生积极影响。此外,我们的研究表明,土地细碎化与土地质量呈负相关。这可以解释为细碎化土地获得的投资较少(例如化肥或灌溉),进而导致土地质量较低。本研究提供了一个有用的启示,即减少土地细碎化可能有助于地方家庭更多地投资于土地,从而增加作物收入,进而改善他们的经济福祉。 Si bien el papel del tamaño de la tierra agrícola en las zonas rurales de Vietnam está bien establecido para los medios de vida rurales, hasta el momento en la literatura no se ha proporcionado evidencia de la importancia de la calidad de la tierra. En el estudio actual de la región centro norte de Vietnam, examinamos cómo la calidad de la tierra afecta el ingreso de los cultivos, el ingreso total y la pobreza utilizando datos secundarios de una muestra de 2468 hogares. En particular, utilizamos un método de variable instrumental (IV) para abordar la endogeneidad potencial de la calidad de la tierra. Brindamos la primera evidencia de que la calidad de la tierra aumenta los ingresos de los hogares locales y la probabilidad de escapar de la pobreza. El hallazgo es sólido incluso después de tener en cuenta la endogeneidad de la calidad de la tierra y controlar varias características importantes de los hogares. En particular, mostramos el mecanismo por el cual la calidad de la tierra afecta positivamente los ingresos y la reducción de la pobreza a través de su efecto positivo en los ingresos de los cultivos. Además, nuestro estudio revela que la fragmentación de la tierra está negativamente relacionada con la calidad de la tierra. Esto podría explicarse por el hecho de que la tierra fragmentada recibe menos inversión (por ejemplo, fertilizantes o riego), lo que resulta en una menor calidad de la tierra. El estudio ofrece una implicación útil de que la reducción de la fragmentación puede ayudar a los hogares locales a invertir más en la tierra, aumentando así los ingresos de los cultivos, lo que a su vez mejora su bienestar económico.

Suggested Citation

  • Yen H. T. Nguyen & Tuyen Q. Tran & Dung T. Hoang & Thu M. T. Tran & Trung T. Nguyen, 2023. "Land quality, income, and poverty among rural households in the North Central Region, Vietnam," Poverty & Public Policy, John Wiley & Sons, vol. 15(2), pages 150-172, June.
  • Handle: RePEc:wly:povpop:v:15:y:2023:i:2:p:150-172
    DOI: 10.1002/pop4.366
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