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The impact of land fragmentation on household income: Evidence from rural Vietnam

Author

Listed:
  • Quang Tran, Tuyen
  • Van Vu, Huong

Abstract

Our study provides evidence that land fragmentation has negative consequences for household income, possibly because of its negative effects on crop income in ruralVietnam. Notably, using the Instrumental Variables (IV) method, we find that the negative effect is much greater after addressing the endogeneity of land fragmentation. IV analysis, therefore, suggests that a conventional approach which often uses the Ordinary Least Squares (OLS) method is likely to underestimate the impact of land fragmentation on rural households. Also, the finding implies that reducing land fragmentation would minimize its negative consequences for household income by reducing its negative effect on crop income.

Suggested Citation

  • Quang Tran, Tuyen & Van Vu, Huong, 2019. "The impact of land fragmentation on household income: Evidence from rural Vietnam," MPRA Paper 98171, University Library of Munich, Germany, revised 2019.
  • Handle: RePEc:pra:mprapa:98171
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    File URL: https://mpra.ub.uni-muenchen.de/98171/1/MPRA_paper_98171.pdf
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    More about this item

    Keywords

    Cropland; Endonegeity; Land law 1993; Land reform; Fragmentation; Household income; rural Vietnam;

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

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