The impact of land fragmentation on household income: Evidence from rural Vietnam

Tuyen Tran and Huong Van Vu

MPRA Paper from University Library of Munich, Germany

Abstract: Our study provides evidence that land fragmentation has negative consequences for household income, possibly because of its negative effects on crop income in ruralVietnam. Notably, using the Instrumental Variables (IV) method, we find that the negative effect is much greater after addressing the endogeneity of land fragmentation. IV analysis, therefore, suggests that a conventional approach which often uses the Ordinary Least Squares (OLS) method is likely to underestimate the impact of land fragmentation on rural households. Also, the finding implies that reducing land fragmentation would minimize its negative consequences for household income by reducing its negative effect on crop income.

Keywords: Cropland; Endonegeity; Land law 1993; Land reform; Fragmentation; Household income, rural Vietnam (search for similar items in EconPapers)
JEL-codes: Q1 Q12 Q18 (search for similar items in EconPapers)
Date: 2019, Revised 2019
New Economics Papers: this item is included in nep-agr, nep-dev, nep-gro, nep-sea and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

Forthcoming in Land Use Policy December.89(2019): pp. 1-22

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:98171

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