TY - JOUR

T1 - The Effect of Renting in Cropland on Livelihood Choices and Agricultural Commercialization

T2 - A Case Study from Rural Vietnam

AU - Schulte, Oliver

AU - Nguyen, Trung Thanh

AU - Grote, Ulrike

N1 - Funding Information: We thank the members of the institute for environmental economics and world trade and of the institute of development and agricultural economics, both in Hannover, Germany, for intense and useful discussions. We would like to extend our gratitude to the participants of the presentation session “Crop and cropping systems” at the Tropentag 2019 in Kassel, Germany. Lastly, we would like to thank the anonymous reviewer for comments that allowed us to considerably improve the quality of this manuscript, and the Vietnamese households that participated in the survey. This research was supported by the German Research Foundation (DFG) through funding for the project "Armut und nachhaltige Entwicklung: ein Langzeit-Panelprojekt in Thailand und Vietnam, 2015 – 2024 (TVSEP)." Funding Information: Open Access funding enabled and organized by Projekt DEAL.

PY - 2022/12

Y1 - 2022/12

N2 - This paper investigates the role of land rental markets in livelihood choices using data from 792 farming households in rural Vietnam. First, we cluster households according to livelihood strategies and estimate the determinants of the respective decision. In a second step, we analyze the contribution of rented land in linking smallholders to output markets. Our results suggest that rented land can provide smallholders with an opportunity to increase their agricultural activities and avoid resorting to less remunerative activities such as agricultural wage labor. Moreover, rented crop area increases the probability of market participation as well as the quantity of sales. Our results point to the need for a further liberalization of land rental markets specifically targeted at households that have been excluded from more remunerative livelihood strategies previously. Supporting these households to have access to the assets required to cultivate the additional area is thus recommended.

AB - This paper investigates the role of land rental markets in livelihood choices using data from 792 farming households in rural Vietnam. First, we cluster households according to livelihood strategies and estimate the determinants of the respective decision. In a second step, we analyze the contribution of rented land in linking smallholders to output markets. Our results suggest that rented land can provide smallholders with an opportunity to increase their agricultural activities and avoid resorting to less remunerative activities such as agricultural wage labor. Moreover, rented crop area increases the probability of market participation as well as the quantity of sales. Our results point to the need for a further liberalization of land rental markets specifically targeted at households that have been excluded from more remunerative livelihood strategies previously. Supporting these households to have access to the assets required to cultivate the additional area is thus recommended.

KW - Commercialization

KW - Control function

KW - Double-Hurdle

KW - Land markets

KW - Livelihoods

UR - http://www.scopus.com/inward/record.url?scp=85124753220&partnerID=8YFLogxK

U2 - 10.1057/s41287-021-00496-9

DO - 10.1057/s41287-021-00496-9

M3 - Article

AN - SCOPUS:85124753220

VL - 34

SP - 2878

EP - 2898

JO - European Journal of Development Research

JF - European Journal of Development Research

SN - 0957-8811

IS - 6

ER -