Journal
ECONOMIC ANALYSIS AND POLICY
Volume 73, Issue -, Pages 455-473Publisher
ELSEVIER
DOI: 10.1016/j.eap.2021.11.017
Keywords
Land consolidation; Plot exchange; Labor allocation; Household farms; Vietnam
Categories
Funding
- Japan Society for the Promotion of Science [17K03692, 20K22123, 21K20150]
- Grants-in-Aid for Scientific Research [17K03692, 20K22123, 21K20150] Funding Source: KAKEN
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This study explores the impacts of agricultural land consolidation on household labor allocation and farmland productivity in Vietnam. The results indicate that plot exchange reduced the number of household plots dedicated to annual crop production by half and significantly decreased household labor allocated to crop production.
Studies on the impacts of agricultural land consolidation have mostly used the household plot number as a proxy. Instead, this study exploits the variation in household participation in plot exchange, a policy for consolidating cropland in Vietnam, to evaluate the impacts of land consolidation on household labor allocation and farmland productivity. Using data from the Vietnam Access to Resources Household Survey (VARHS), we construct a panel household dataset from 2010 to 2016. This sample consists of 618 households in two provinces, Ha Tay and Nghe An, where plot exchange was implemented intensively in the period of study. We apply two-way fixed effects regression to mitigate the endogeneity in household participation in plot exchange. The results indicate that plot exchange halved the number of household plots dedicated to annual crop production. While the impact on land productivity was statistically insignificant, land consolidation via plot exchange dramatically reduced household labor allocated to crop production, especially rice production. Further analyses reveal that the labor effects may come from improved farm irrigation and increased machine rentals. (C) 2021 Economic Society of Australia, Queensland. Published by Elsevier B.V. All rights reserved.
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