The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam

Huy Nguyen

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates the impacts of land fragmentation on economic diversity of farm households in Vietnam. To develop the empirical analysis, a model is presented in which the estimated impact of land fragmentation on economic diversification allows for non-neutral technical change. The paper tests the theoretical predictions of this model by providing empirical evidence of the impact of land fragmentation on farm and nonfarm outcomes such as labour supply, profits, labour intensity and productivity. By using different methods aimed at verifying and checking the consistency of the results, we find that land consolidation may reduce farm labour supply, labour intensity, and improve farm profits and productivity. Similarly, it may release more farm labour to nonfarm sectors and increase nonfarm profits. The empirical results show that factor-biased technical change plays an important role in explaining the impact of agricultural technical change on economic diversification in Vietnam.

Keywords: Agricultural technical change; land fragmentation; land consolidation; labour allocation; and elasticity of substitution; nonfarm sectors; and economic diversification (search for similar items in EconPapers)
JEL-codes: D13 J22 O3 Q18 (search for similar items in EconPapers)
Date: 2014-07-23
New Economics Papers: this item is included in nep-agr, nep-dev, nep-eff and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam (2014)
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