Political Connections and Investment in Rural Vietnam

Thomas Markussen and Finn Tarp

No wp-2011-037, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

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.

Keywords: Credit; Informal sector; Investments; Land tenure; Right of property (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (5)

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Working Paper: Political connections and investment in rural Vietnam (2011)
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