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Breaking up the collective farm : welfare outcomes of Vietnam's massive land privatization

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  • Ravallion, Martin
  • Van der Walle, Dominique

Abstract

The decollectivization of agriculture in Vietnam was a crucial step in the country's transition to a market economy. But the assignment of land use rights had to be decentralized, and local cadres ostensibly had the power to corrupt this process. The authors assess the realized land allocationagainst explicit counterfactuals, including the simulated allocation implied by a competitive market-based privatization. The authors find that 95-99 percent of maximum aggregate consumption (depending on the region) was realized by a land allocation that reduced overall inequality, with the poorest absolutely better off. They attribute this outcome to initial conditions at the time of reform and actions by the center to curtail the power of local elites.

Suggested Citation

  • Ravallion, Martin & Van der Walle, Dominique, 2001. "Breaking up the collective farm : welfare outcomes of Vietnam's massive land privatization," Policy Research Working Paper Series 2710, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2710
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    References listed on IDEAS

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    1. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
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    4. Jyotsna Jalan & Martin Ravallion, 1998. "Geographic Poverty Traps?," Boston University - Institute for Economic Development 86, Boston University, Institute for Economic Development.
    5. Van de Walle, D., 1996. "Infrastructure and Poverty in Vietnam," Papers 121, World Bank - Living Standards Measurement.
    6. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
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    Cited by:

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    2. Eric Edmonds & Nina Pavcnik, 2002. "Does Globalization Increase Child Labor? Evidence from Vietnam," NBER Working Papers 8760, National Bureau of Economic Research, Inc.
    3. Klaus Deininger & Songqing Jin, 2008. "Land Sales and Rental Markets in Transition: Evidence from Rural Vietnam," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(1), pages 67-101, February.
    4. Van Hung, Pham & MacAulay, T. Gordon & Marsh, Sally P., 2007. "The economics of land fragmentation in the north of Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 51(2), pages 1-17.
    5. Ravallion, Martin & Van der Walle, Dominique, 2003. "Land allocation in Vietnam's agrarian transition," Policy Research Working Paper Series 2951, The World Bank.
    6. Edmonds, Eric V. & Pavcnik, Nina, 2005. "The effect of trade liberalization on child labor," Journal of International Economics, Elsevier, vol. 65(2), pages 401-419, March.
    7. Kirk, Michael & Tuan, Nguyen Do Anh, 2009. "Land-tenure policy reforms: Decollectivization and the Doi Moi system in Vietnam," IFPRI discussion papers 927, International Food Policy Research Institute (IFPRI).
    8. Vasco Molini & Guanghua Wan, 2008. "Discovering sources of inequality in transition economies: a case study of rural Vietnam," Economic Change and Restructuring, Springer, vol. 41(1), pages 75-96, March.
    9. Geoffrey McNicoll, 2006. "Policy Lessons of the East Asian Demographic Transition," Population and Development Review, The Population Council, Inc., vol. 32(1), pages 1-25, March.
    10. Dominique Van De Walle & Dorothyjean Cratty, 2004. "Is the emerging non‐farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.
    11. François Fortier & Tran Thi Thu Trang, 2013. "Agricultural Modernization and Climate Change in Vietnam's Post-Socialist Transition," Development and Change, International Institute of Social Studies, vol. 44(1), pages 81-99, January.
    12. Boniface Ngah Epo & Francis Menjo Baye & Nadine Teme Angele Manga, 2011. "Spatial and Inter-temporal Sources of Poverty, Inequality and Gender Disparities in Cameroon: a Regression-Based Decomposition Analysis," Working Papers PMMA 2011-15, PEP-PMMA.
    13. Klaus Deininger, 2002. "Agrarian reforms in Eastern European countries: lessons from international experience," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(7), pages 987-1003.

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