Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam

Research output: Contribution to journalArticleResearchpeer review

Authors

  • Manh Hung Do
  • Trung Thanh Nguyen
  • Ulrike Grote
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Details

Original languageEnglish
Pages (from-to)157-173
Number of pages17
JournalEconomic Analysis and Policy
Volume77
Early online date15 Nov 2022
Publication statusPublished - Mar 2023

Abstract

Land consolidation is important to increase the economies of scale in farming, and understanding its determinants and effects is useful for policy-makers to support rural transformation. In this paper, we examine the factors determining the voluntary participation of farm households in land consolidation and investigate its impacts on crop production costs, rural poverty, and rural transformation. Our results show that land consolidation is driven by farming efficiency. It significantly decreases land preparation and harvest costs, increases farm income, and reduces poverty. We conclude that land consolidation should be promoted to facilitate the redistribution of farm land from farmers who want to leave agriculture to those who continue to work in agriculture. The redistribution of farmland promotes agricultural transformation by reallocating labor from farm to non-farm sectors.

Keywords

    Farm income, Land fragmentation, Non-farm income, Poverty reduction, Rural transformation, Simultaneous regression

ASJC Scopus subject areas

Sustainable Development Goals

Cite this

Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam. / Do, Manh Hung; Nguyen, Trung Thanh; Grote, Ulrike.
In: Economic Analysis and Policy, Vol. 77, 03.2023, p. 157-173.

Research output: Contribution to journalArticleResearchpeer review

Do MH, Nguyen TT, Grote U. Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam. Economic Analysis and Policy. 2023 Mar;77:157-173. Epub 2022 Nov 15. doi: 10.1016/j.eap.2022.11.010
Do, Manh Hung ; Nguyen, Trung Thanh ; Grote, Ulrike. / Land consolidation, rice production, and agricultural transformation : Evidence from household panel data for Vietnam. In: Economic Analysis and Policy. 2023 ; Vol. 77. pp. 157-173.
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abstract = "Land consolidation is important to increase the economies of scale in farming, and understanding its determinants and effects is useful for policy-makers to support rural transformation. In this paper, we examine the factors determining the voluntary participation of farm households in land consolidation and investigate its impacts on crop production costs, rural poverty, and rural transformation. Our results show that land consolidation is driven by farming efficiency. It significantly decreases land preparation and harvest costs, increases farm income, and reduces poverty. We conclude that land consolidation should be promoted to facilitate the redistribution of farm land from farmers who want to leave agriculture to those who continue to work in agriculture. The redistribution of farmland promotes agricultural transformation by reallocating labor from farm to non-farm sectors.",
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N1 - Funding Information: We would like to thank the respondents from the surveyed provinces for their kind support and cooperation. We highly acknowledge the financial support of the German Research Foundation ( DFG – FOR/756 ) for the TVSEP project and appreciate the efforts of our colleagues at the Leibniz University Hannover for data collection and cleaning. Manh Hung Do would like to thank the German Academic Exchange Service (DAAD) for financial assistance. We gratefully acknowledge the constructive comments and suggestions from Gokul Prasad Paudel and the other participants of the Conference “Rural Economic Transformation: Pathways to Inclusive and Sustainable Prosperity in Post-COVID-19 Asia” organized by the Asian Development Bank Institute (ADBI) on November 17–19, 2021. We are also grateful to the constructive comments from the Editor and anonymous reviewers.

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