International Development Planning Review

Farmland loss, nonfarm diversification and inequality among households in Hanoi's peri-urban areas, Vietnam

International Development Planning Review (2014), 36, (3), 357–379.

Abstract

Using a novel dataset from a 2010 household survey involving 477 households, this study provides the first econometric evidence for the impacts of farmland loss (due to urbanisation) on nonfarm diversification among households in Hanoi's peri-urban areas in Vietnam. The results from fractional logit and fractional multinomial logit models indicate that farmland loss has a negative effect on the share of farm income but a positive effect on the share of various nonfarm incomes, notably informal wage income. We also investigate the relationship between various income sources and income inequality using a Gini decomposition analysis. While income from informal wage work and farm work are inequality-decreasing, other income sources are inequality-increasing. Thus, this suggests that farmland loss has indirect mixed effects on income inequality.

Access Token
£25.00
If you have private access to this content, please log in with your username and password here

ADB (ASIAN DEVELOPMENT BANK) (2007), ‘Agricultural Land Conversion for Industrial and Commercial Use: Competing Interests of the Poor’, in Asian Development Bank (ed.), Markets and Development Bulletin, Hanoi, Vietnam, Asian Development Bank, pp. 85-93. Google Scholar

ADGER, W. N. (1999), ‘Exploring Income Inequality in Rural, Coastal Viet Nam’, The Journal of Development Studies, 35, 96-119. ‘Exploring Income Inequality in Rural, Coastal Viet Nam’ The Journal of Development Studies 35 96 119 Google Scholar

BABATUNDE, R. O. (2008), ‘Income Inequality in Rural Nigeria: Evidence from Farming Households Survey Data’, Australian Journal of Basic and Applied Sciences, 2, 134-40. ‘Income Inequality in Rural Nigeria: Evidence from Farming Households Survey Data’ Australian Journal of Basic and Applied Sciences 2 134 40 Google Scholar

BUIS, M. L. (2008), ‘FMLOGIT: Stata Module Fitting a Fractional Multinomial Logit Model by Quasi Maximum Likelihood [Statistical Software Components]’, Boston College Department of Economics, from http://econpapers.repec.org/software/bocbocode/s456976.htm Google Scholar

 Google Scholar

CHEN, W. (1998), ‘The Political Economy of Rural Industrialisation in China: Village Conglomerates in Shandong Province’, Modern China, 24, 73-96. ‘The Political Economy of Rural Industrialisation in China: Village Conglomerates in Shandong Province’ Modern China 24 73 96 Google Scholar

CLING, J. P., RAZAFINDRAKOTO, M. and ROUBAUD, F. (2011), The informal economy in Viet Nam, Hanoi, Vietnam, International Labour Organisation. The informal economy in Viet Nam Google Scholar

CLING, J. P., RAZAFINDRAKOTO, M., ROUUBAUD, F., NGUYEN, H. T. T., NGUYEN, C. H. and PHAN, T. T. N. (2010), The Informal Sector in Vietnam: A focus on Hanoi and Ho Chi Minh City, Hanoi, Vietnam, The Gioi Editions. The Informal Sector in Vietnam: A focus on Hanoi and Ho Chi Minh City Google Scholar

DENG, X., HUANG, J., ROZELLE, S. and UCHIDA, E. (2006), ‘Cultivated Land Conversion and Potential Agricultural Productivity in China’, Land Use Policy, 23, 372-84. ‘Cultivated Land Conversion and Potential Agricultural Productivity in China’ Land Use Policy 23 372 84 Google Scholar

 Google Scholar

ELLIS, F. (2000), Rural Livelihoods and Diversity in Developing Countries, New York, Oxford University Press. Rural Livelihoods and Diversity in Developing Countries Google Scholar

FAZAL, S. (2000), ‘Urban Expansion and Loss of Agricultural Land: A GIS-Based Study of Saharanpur City, India’, Environment and Urbanisation, 12, 133-49. ‘Urban Expansion and Loss of Agricultural Land: A GIS-Based Study of Saharanpur City, India’ Environment and Urbanisation 12 133 49 Google Scholar

FAZAL, S. (2001), ‘The Need for Preserving Farmland: A Case Study from a Predominantly Agrarian Economy (India)’, Landscape and Urban Planning, 55, 1-13. ‘The Need for Preserving Farmland: A Case Study from a Predominantly Agrarian Economy (India)’ Landscape and Urban Planning 55 1 13 Google Scholar

 Google Scholar

GSO (GENERAL STATISTICAL OFFICE) (2006), Questionnaire on Household Living Standard Survey 2006 (VHLSS-2006), Hanoi, Vietnam, General Statistical Office. Google Scholar

GSO (GENERAL STATISTICAL OFFICE) (2008), ‘Section 9: Participation In Poverty Reduction Programs’, in GSO (ed.), The Result of Survey on Household Living Standards 2008, Hanoi, Vietnam, Statistical Publishing House. Google Scholar

GREGORY, P. and MATTINGLY, M. (2009), ‘Goodbye to natural resource-based livelihoods? Crossing the rural/urban divide’, Local Environment, 14, 879-90. ‘Goodbye to natural resource-based livelihoods? Crossing the rural/urban divide’ Local Environment 14 879 90 Google Scholar

HA NOI MOI (2010), ‘Vuong Nhât Là Giao Đât Dich Vu Cho Dân [Granting Land for Services to People is the Biggest Obstacle]’ http://www.baomoi.com/Vuong-nhat-o-phan-giao-dat-dich-vu-cho-dan/148/5244280.epi Google Scholar

HAN, S. S. and VU, K. T. (2008), ‘Land acquisition in transitional Hanoi, Vietnam’, Urban Studies, 45, 1097-117. ‘Land acquisition in transitional Hanoi, Vietnam’ Urban Studies 45 1097 117 Google Scholar

 Google Scholar

 Google Scholar

HOP NHAN (2008), ‘Giai Phóng Mat Bang Tai Hà Tây: Bao Gio Hat "Tac"? [Site Clearance in Ha Tay: When Will It Be Solved?]’ http://www.monre.gov.vn/v35/default.aspx?tabid=428&cateID=4&id=43669&code=CKE7S43669 Google Scholar

HUANG, J., WU, Y. and ROZELLE, S. (2009), ‘Moving off the farm and intensifying agricultural production in Shandong: a case study of rural labor market linkages in China’, Agricultural Economics, 40, 203-18. ‘Moving off the farm and intensifying agricultural production in Shandong: a case study of rural labor market linkages in China’ Agricultural Economics 40 203 18 Google Scholar

HUU HOA (2011), ‘Moi Mat Ngóng Đat Dich Vu [Waiting For Land for Services for A Very Long Time in Vain]’ http://hanoimoi.com.vn/Tin-tuc/Kinh-te/532088/moi-mat-ngong-dat-dich-vu Google Scholar

JONASSON, E. (2011), ‘Informal Employment and the Role of Regional Governance’, Review of Development Economics, 15, 429-41. ‘Informal Employment and the Role of Regional Governance’ Review of Development Economics 15 429 41 Google Scholar

KALA, N., KURUKULASURIYA, P. and MENDELSOHN, R. (2012), ‘The Impact of Climate Change on Agro-Ecological Zones: Evidence from Africa’, Environment and Development Economics, 1, 1-25. ‘The Impact of Climate Change on Agro-Ecological Zones: Evidence from Africa’ Environment and Development Economics 1 1 25 Google Scholar

LANJOUW, P., MURGAI, R. and STERN, N. (2013), ‘Nonfarm Diversification, Poverty, Economic Mobility, and Income Inequality: a case study in Village India’, Agricultural Economics, 44, 461-73. ‘Nonfarm Diversification, Poverty, Economic Mobility, and Income Inequality: a case study in Village India’ Agricultural Economics 44 461 73 Google Scholar

LE, D. P. (2007), Thu nhap, Đoi Song, Viě Làm Cua Nguoi Có Đat Bi Thu Hoi Đe Xây Dung Các Khu Công Nghiep, Khu Đô Thi, Ket Cau Ha Tang Kinh Te-Xã Hoi, Các Công Trình Công Cong Phuc Vu Loi Ích Quoc Gia [Income, Life and Employment of Those Whose Land Was Acquired for The Construction of Industrial Zones, Urban Areas, Infrastructure and Public Projects], Hanoi, Vietnam, National Political Publisher. Thu nhap, Đoi Song, Viě Làm Cua Nguoi Có Đat Bi Thu Hoi Đe Xây Dung Các Khu Công Nghiep, Khu Đô Thi, Ket Cau Ha Tang Kinh Te-Xã Hoi, Các Công Trình Công Cong Phuc Vu Loi Ích Quoc Gia [Income, Life and Employment of Those Whose Land Was Acquired for The Construction of Industrial Zones, Urban Areas, Infrastructure and Public Projects] Google Scholar

LERMAN, R. I. and YITZHAKI, S. (1985), ‘Income Inequality Effects by Income Source: A New Approach and Applications to the United States’, The Review of Economics and Statistics, 67, 151-56. ‘Income Inequality Effects by Income Source: A New Approach and Applications to the United States’ The Review of Economics and Statistics 67 151 56 Google Scholar

LÓPEZ-FELDMAN, A. (2006), Decomposing Inequality and Obtaining Marginal Effects', Stata Journal, 6, 106-11. Decomposing Inequality and Obtaining Marginal Effects’ Stata Journal 6 106 11 Google Scholar

MATTINGLY, M. (2009), ‘Making land work for the losers: Policy responses to the urbanisation of rural livelihoods’, International Development Planning Review, 31, 37-53. ‘Making land work for the losers: Policy responses to the urbanisation of rural livelihoods’ International Development Planning Review 31 37 53 Google Scholar

 Google Scholar

 Google Scholar

 Google Scholar

NGUYEN, T. D., VU, D. T. and PHILIPPE, L. (2011), ‘Peasant Responses to Agricultural Land Conversion and Mechanism of Rural Social Differentiation in Hung Yen Province, Northern Vietnam’, paper presented at the 7th ASAE International Conference, 13-15 October, Hanoi, Vietnam. ‘Peasant Responses to Agricultural Land Conversion and Mechanism of Rural Social Differentiation in Hung Yen Province, Northern Vietnam’ Google Scholar

PAPKE, L. E. and WOOLDRIGE, J. M. (1996), ‘Econometric Methods for Fractional Response Variables with an Application to 401 (k) Plan Participation Rates’, Journal of Applied Econometrics, 11, 619-32. ‘Econometric Methods for Fractional Response Variables with an Application to 401 (k) Plan Participation Rates’ Journal of Applied Econometrics 11 619 32 Google Scholar

PARISH, W., ZHE, X. and LI, F. (1995), ‘Nonfarm Work and Marketization of the Chinese Country-side’, The China Quarterly, 143, 697-730. ‘Nonfarm Work and Marketization of the Chinese Country-side’ The China Quarterly 143 697 730 Google Scholar

PENDER, J. and GEBREMEDHIN, B. (2007), ‘Determinants of Agricultural and Land Management Practices and Impacts on Crop Production and Household Income in the Highlands of Tigray, Ethiopia’, Journal of African Economies, 17, 395-450. ‘Determinants of Agricultural and Land Management Practices and Impacts on Crop Production and Household Income in the Highlands of Tigray, Ethiopia’ Journal of African Economies 17 395 450 Google Scholar

 Google Scholar

PUNJ, G. and STEWART, D. W. (1983), ‘Cluster Analysis in Marketing Research: Review and Suggestions for Application’, Journal of Marketing Research, 20, 134-48. ‘Cluster Analysis in Marketing Research: Review and Suggestions for Application’ Journal of Marketing Research 20 134 48 Google Scholar

RAMANKUTTY, N., FOLEY, J., and OLEJNICZAK, N. (2002), ‘People on the Land: Changes in Global Population and Croplands During the 20th century’, AMBIO: A Journal of the Human Environment, 31, 251-57. ‘People on the Land: Changes in Global Population and Croplands During the 20th century’ AMBIO: A Journal of the Human Environment 31 251 57 Google Scholar

SHORROCKS, A. F. (1982), ‘Inequality Decomposition by Factor Components’, Econometrica, 50, 193-211. ‘Inequality Decomposition by Factor Components’ Econometrica 50 193 211 Google Scholar

STARK, O., TAYLOR, J. E. and YITZHAKI, S. (1986), ‘Remittances and Inequality’, The Economic Journal, 96, 722-40. ‘Remittances and Inequality’ The Economic Journal 96 722 40 Google Scholar

STATISTICS DEPARTMENT OF HOAI DUC DISTRICT (2010), Statistical Yearbook of Hoai Duc 2009, Hanoi, Vietnam, Statistics Department of Hoai Duc District. Google Scholar

TOUFIQUE, K. A. and TURTON, C. (2002), Hand Not Land: How Livelihoods Are Changing in Rural Banladesh, Dhaka, Bangladesh, Bangladesh Institute of Development Studies. Hand Not Land: How Livelihoods Are Changing in Rural Banladesh Google Scholar

VAN DEN BERG, M. and KUMBI, G. E. (2006), ‘Poverty and the Rural Nonfarm Economy in Oromia, Ethiopia’, Agricultural Economics, 35, 469-75. ‘Poverty and the Rural Nonfarm Economy in Oromia, Ethiopia’ Agricultural Economics 35 469 75 Google Scholar

VIETNAMNET/TN (2009), ‘Industrial Boom Hurts Farmers, Threatens Food Supply: Seminar’ http://www.vietnamnews.biz/Industrial-boom-hurts-farmers-threatens-food-supply-seminar_470.html Google Scholar

WAGNER, J. (2001), ‘A Note on the Firm Size-Export Relationship’, Small Business Economics, 17, 229-37. ‘A Note on the Firm Size-Export Relationship’ Small Business Economics 17 229 37 Google Scholar

WINTERS, P., ESSAM, T., ZEZZA, A., DAVIS, B. and CARLETTO, C. (2010), ‘Patterns of Rural Development: A Cross-Country Comparison Using Microeconomic Data’, Journal of Agricultural Economics, 61, 628-51. ‘Patterns of Rural Development: A Cross-Country Comparison Using Microeconomic Data’ Journal of Agricultural Economics 61 628 51 Google Scholar

WOOLDRIDGE, J. M. (2013), Introductory Econometrics: A Modern Approach, Mason, OH, South-Western Cengage Learning. Introductory Econometrics: A Modern Approach Google Scholar

WORLD BANK (2009), Improving Land Acquisition and Voluntary Land Conversion in Vietnam, Hanoi, Vietnam, the World Bank. Google Scholar

WORLD BANK (2011), Compulsory Land Acquisition and Voluntary Land Conversion in Vietnam: The Conceptual Approach, Land Valuation and Grievance Redress Mechanism, Washington, DC, the World Bank. Google Scholar

If you have private access to this content, please log in with your username and password here

Details

Author details

Tuyen, Tran

Lim, Steven

Cameron, Michael

Van Huong, Vu