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Political Connections and Investment in Rural Vietnam

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  • Thomas Markussen
  • Finn Tarp

Abstract

This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers' agricultural investment decisions. Our main result is that households significantly increase their investment in land improvement as a result of relatives moving into public office. Connections to office holders appear to be important for investment because they strengthen de facto land property rights and improve access to off-farm employment and to informal loans.

Suggested Citation

  • Thomas Markussen & Finn Tarp, 2011. "Political Connections and Investment in Rural Vietnam," WIDER Working Paper Series wp-2011-037, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2011-037
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    2. Vidhya Unnikrishnan & Subhasish Dey, 2023. "Political meddling in social assistance programme: Panel data evidence from India," Journal of International Development, John Wiley & Sons, Ltd., vol. 35(6), pages 1346-1364, August.
    3. Das, Upasak, 2015. "Does Political Activism and Affiliation Affect Allocation of Benefits in the Rural Employment Guarantee Program: Evidence from West Bengal, India," World Development, Elsevier, vol. 67(C), pages 202-217.
    4. Hoang, Trung X. & Pham, Cong S. & Ulubaşoğlu, Mehmet A., 2014. "Non-Farm Activity, Household Expenditure, and Poverty Reduction in Rural Vietnam: 2002–2008," World Development, Elsevier, vol. 64(C), pages 554-568.

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