TY - JOUR

T1 - Land consolidation, rice production, and agricultural transformation

T2 - Evidence from household panel data for Vietnam

AU - Do, Manh Hung

AU - Nguyen, Trung Thanh

AU - Grote, Ulrike

N1 - Funding Information: We would like to thank the respondents from the surveyed provinces for their kind support and cooperation. We highly acknowledge the financial support of the German Research Foundation ( DFG – FOR/756 ) for the TVSEP project and appreciate the efforts of our colleagues at the Leibniz University Hannover for data collection and cleaning. Manh Hung Do would like to thank the German Academic Exchange Service (DAAD) for financial assistance. We gratefully acknowledge the constructive comments and suggestions from Gokul Prasad Paudel and the other participants of the Conference “Rural Economic Transformation: Pathways to Inclusive and Sustainable Prosperity in Post-COVID-19 Asia” organized by the Asian Development Bank Institute (ADBI) on November 17–19, 2021. We are also grateful to the constructive comments from the Editor and anonymous reviewers.

PY - 2023/3

Y1 - 2023/3

N2 - 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.

AB - 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.

KW - Farm income

KW - Land fragmentation

KW - Non-farm income

KW - Poverty reduction

KW - Rural transformation

KW - Simultaneous regression

UR - http://www.scopus.com/inward/record.url?scp=85142443220&partnerID=8YFLogxK

U2 - 10.1016/j.eap.2022.11.010

DO - 10.1016/j.eap.2022.11.010

M3 - Article

AN - SCOPUS:85142443220

VL - 77

SP - 157

EP - 173

JO - Economic Analysis and Policy

JF - Economic Analysis and Policy

SN - 0313-5926

ER -