Migration, Agricultural Production and Diversification: A case study from Vietnam
The New Economics of Labor Migration (NELM) hypothesizes that migration is a strategy to reduce risks and financial liquidity constraints of rural households. This paper tests this hypothesis for the case of Vietnam. The impacts of migration on agricultural production and diversification are estimated in fixed effects regression models based on a panel data set of about 2,000 households in Vietnam. The findings suggest that rural households who receive remittances from their migrants reduce the share of their income from rice, increase their land productivity and become more specialized in labor allocation. However, migration also decreases labor productivity and crop diversification of rural households. Overall, the NELM hypothesis is only supported in cases migrant households receive remittances.
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