Land consolidation, rice production, and agricultural transformation

Evidence from household panel data for Vietnam

authored by

Manh Hung Do, Trung Thanh Nguyen, Ulrike Grote

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.

Organisation(s)

Institute of Environmental Economics and World Trade

Type

Article

Journal

Economic Analysis and Policy

Volume

77

Pages

157-173

No. of pages

17

ISSN

0313-5926

Publication date

03.2023

Publication status

Published

Peer reviewed

Yes

ASJC Scopus subject areas

Economics and Econometrics, Economics, Econometrics and Finance (miscellaneous)

Sustainable Development Goals

SDG 1 - No Poverty

Electronic version(s)

https://doi.org/10.1016/j.eap.2022.11.010 (Access: Closed)