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The Forgotten Property Rights: Restrictions on Land Use in Vietnam

  • Thomas Markussen

    (Department of Economics, University of Copenhagen)

  • Finn Tarp

    (Department of Economics, University of Copenhagen)

  • Katleen Van den Broeck

    (Department of Economics, University of Copenhagen)

Studies of land property rights usually focus on tenure security and transfer rights. Rights to determine how to use the land are regularly ignored. However, in transition economies such as Vietnam and China, user rights are often limited. Relying on a unique Vietnamese panel data set at both household and plot level, we show that crop choice restrictions are widespread and prevent crop diversification. Restrictions do not decrease household income, but restricted households work harder, and there are indications that they are supplied with higher quality inputs. Our findings are consistent with the view that the Vietnamese government has managed to intervene effectively in agricultural (rice) production to promote output and food security. At the same time, it is now time to carefully consider the potential benefits of a more diversified crop pattern.

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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 09-21.

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Length: 21 pages
Date of creation: Sep 2009
Date of revision:
Handle: RePEc:kud:kuiedp:0921
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  1. Joseph Hayes & Michael Roth & Lydia Zepeda, 1997. "Tenure Security, Investment and Productivity in Gambian Agriculture: A Generalized Probit Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 369-382.
  2. Rohini Pande & Christopher Udry, 2005. "Institutions and Development:A View from Below," Working Papers 928, Economic Growth Center, Yale University.
  3. Markus Goldstein & Christopher Udry, 2008. "The Profits of Power: Land Rights and Agricultural Investment in Ghana," Journal of Political Economy, University of Chicago Press, vol. 116(6), pages 981-1022, December.
  4. Markussen, Thomas, 2008. "Property Rights, Productivity, and Common Property Resources: Insights from Rural Cambodia," World Development, Elsevier, vol. 36(11), pages 2277-2296, November.
  5. Pingali, Prabhu L & Xuan, Vo-Tong, 1992. "Vietnam: Decollectivization and Rice Productivity Growth," Economic Development and Cultural Change, University of Chicago Press, vol. 40(4), pages 697-718, July.
  6. Brasselle, Anne-Sophie & Gaspart, Frederic & Platteau, Jean-Philippe, 2002. "Land tenure security and investment incentives: puzzling evidence from Burkina Faso," Journal of Development Economics, Elsevier, vol. 67(2), pages 373-418, April.
  7. Besley, Timothy, 1995. "Property Rights and Investment Incentives: Theory and Evidence from Ghana," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 903-37, October.
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