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Migration, Agricultural Production and Diversification: A case study from Vietnam

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  • Nguyen, Duc Loc
  • Grote, Ulrike

Abstract

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.

Suggested Citation

  • Nguyen, Duc Loc & Grote, Ulrike, 2015. "Migration, Agricultural Production and Diversification: A case study from Vietnam," 2015 Conference, August 9-14, 2015, Milan, Italy 229379, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae15:229379
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    More about this item

    Keywords

    Migration; Remittances; Agricultural Productivity; Diversification; Vietnam; Community/Rural/Urban Development; Labor and Human Capital; J62; D13; O13; Q12;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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