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Representation of property rights and credit market outcomes: Evidence from a land reform in Vietnam

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  • Kemper, Niels
  • Klump, Rainer
  • Schumacher, Heiner

Abstract

This article evaluates the impact of a land certification program on credit market outcomes in rural Vietnam. We hypothesize that the representation of property increases households' participation in formal credit markets. We compare credit market outcomes for certified and non-certified households controlling for socioeconomic and geographic characteristics, and use an instrumental variable approach exploiting a partial delay in program rollout. Certified households are more likely to borrow from formal banks with a collateral-based lending policy. There is no evidence for an effect on borrowing from formal sources without such a policy. Moreover, certified households pay lower interest rates on formal loans than non-certified households on formal and informal loans.

Suggested Citation

  • Kemper, Niels & Klump, Rainer & Schumacher, Heiner, 2011. "Representation of property rights and credit market outcomes: Evidence from a land reform in Vietnam," Proceedings of the German Development Economics Conference, Berlin 2011 45, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec11:45
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    References listed on IDEAS

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    Cited by:

    1. Carol Newman & Finn Tarp & Katleen van den Broeck, 2015. "Property Rights and Productivity: The Case of Joint Land Titling in Vietnam," Land Economics, University of Wisconsin Press, vol. 91(1), pages 91-105.
    2. Steven Lawry & Cyrus Samii & Ruth Hall & Aaron Leopold & Donna Hornby & Farai Mtero, 2017. "The impact of land property rights interventions on investment and agricultural productivity in developing countries: a systematic review," Journal of Development Effectiveness, Taylor & Francis Journals, vol. 9(1), pages 61-81, January.
    3. Steven Lawry & Cyrus Samii & Ruth Hall & Aaron Leopold & Donna Hornby & Farai Mtero, 2014. "The Impact of Land Property Rights Interventions on Investment and Agricultural Productivity in Developing Countries: a Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 10(1), pages 1-104.
    4. Kemper, Niels & Ha, Luu Viet & Klump, Rainer, 2015. "Property Rights and Consumption Volatility: Evidence from a Land Reform in Vietnam," World Development, Elsevier, vol. 71(C), pages 107-130.

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    More about this item

    Keywords

    Credit; Land reform; Vietnam;
    All these keywords.

    JEL classification:

    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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