Farmland accumulation and rural household income: evidence from the Red River Delta region of Vietnam

Abstract

We identify the factors affecting the participation in land accumulation of rural households by using a multinomial logit model and assess the income effects of participation in land accumulation by using the propensity score matching (PSM) method. We use household data from a rural survey in three provinces in the Red River Delta of Vietnam in 2019. Our results show that farmland accumulation is significantly correlated with age and gender of household head, as well as agricultural productive assets, non-farm income, saving and access to credit. The participation in farmland accumulation leads to an increase in total household income, although the effect is different between land increasing and land decreasing groups. We suggest enhancing access to credit and supporting non-farm activities to accelerate the accumulation of agricultural land and consequently improve household income.

Keywords

• land accumulation
• multinomial logit model
• propensity score matching