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Land Transactions in the North of Vietnam: A Modelling Approach

Author

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  • Van Hung, Pham
  • MacAulay, T. Gordon

Abstract

The use of mathematical models to describe the interactions of variables is useful in modern management. In this paper, a 'mixed' model combining the knapsack problem, a household model and a form of spatial equilibrium model into a modelling framework is developed. The impacts of changes in off-farm wage rates, transaction costs in the rental market, the output prices of paddy crops, and land transactions were examined in the model. The simulation has led to the conclusion that the real benefits to farm households from land consolidation may not be apparent until the real opportunity cost of farm labour begins to rise. In addition, a reform policy in the administrative sector which encourages, not only the process of land accumulation and the rental market to be more active, but also farmers to involve themselves more actively in farming will improve their well-being. Moreover, a policy which allows farmers to freely cultivate other annual crops (cash crops) instead of rice and corn may be important and it should be considered in the future.

Suggested Citation

  • Van Hung, Pham & MacAulay, T. Gordon, 2006. "Land Transactions in the North of Vietnam: A Modelling Approach," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25601, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae06:25601
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    File URL: http://purl.umn.edu/25601
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    References listed on IDEAS

    as
    1. Quy-Toan Do & Lakshmi Iyer, 2003. "Land rights and economic development : evidence from Vietnam," Policy Research Working Paper Series 3120, The World Bank.
    2. Ravallion, Martin & Van der Walle, Dominique, 2003. "Land allocation in Vietnam's agrarian transition," Policy Research Working Paper Series 2951, The World Bank.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Land transactions; modelling; knapsack problem; Vietnam; Land Economics/Use; C6; Q15; Q24;

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land

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