Microeconomic Impacts of Institutional Change in Vietnam’s Northern Uplands

Empirical Studies on Social Capital, Land and Credit Institutions

by Camille Saint-Macary (Author)
©2014 Thesis XXIV, 160 Pages


The Doi Moi reforms initiated in Vietnam in 1986 to lead the transition from a centrally-planned to a market-oriented economy have entailed deep institutional transformations. At the national level, achievements have been impressive, the high economic growth in all sectors of the economy have permitted to divide poverty incidence by three in the country since 1993. Mountainous regions and its inhabitants, however, have lagged behind in the process. There, the combination of poverty and the degradation of natural resources remains a pressing issue. Drawing on a conceptual framework that highlights the determinant role of institutions in the poverty-environment nexus, this book investigates the sources of success and failure in the current institutional framework to address objectives of equity, economic growth and environmental sustainability in Vietnam’s mountains. The empirical investigation uses an original dataset collected in a rural district and examines three critical dimensions: the definition of land rights, the functioning of credit markets, and the formation of social capital.

Table Of Contents

  • Cover
  • Title
  • Copyright
  • About the author(s)/editor(s)
  • About the book
  • This eBook can be cited
  • Editors’ Foreword
  • Acknowledgements
  • Executive Summary
  • List of Abbreviations
  • Contents
  • List of Tables
  • List of Figures
  • 1 Introduction
  • 1.1 General introduction
  • 1.2 Conceptual framework: institutions, poverty and the environment
  • 1.2.1 Linkages between poverty and the environment in agriculture.
  • 1.2.2 The role of institutions
  • 1.2.3 The role of land institutions, financial markets and communities
  • 1.3 Background information
  • 1.3.1 The land reform
  • 1.3.2 The rural credit policy
  • 1.4 Specific objectives and research hypotheses
  • 1.5 Outline of the thesis
  • 2 Presentation of the study area and data collection
  • 3 Land titling policy and soil conservation practices in the northern Uplands of Vietnam
  • 3.1 Introduction
  • 3.2 Land reform and implementation in the NMR
  • 3.3 The research area
  • 3.4 Sampling and data collection
  • 3.5 Estimation strategy
  • 3.5.1 The household-level model
  • 3.5.2 The plot-level model
  • 3.6 Results and discussion
  • 3.6.1 Land allocation in Yen Chau district
  • 3.6.2 Knowledge and adoption of soil conservation technologies
  • 3.6.3 Determinants of knowledge and adoption of soil conservation – the household-level model
  • 3.6.4 Determinants of adoption of soil conservation – the plot-level model
  • 3.7 Conclusion.
  • 3.8 Appendix: Endogeneity of the land title variable: a test based on Instrumental Variable method
  • 4 Has the reform permitted the emergence of a land market?
  • 4.1 Introduction: efficiency and equity effects of land markets
  • 4.2 Land titling and the land market in Vietnam
  • 4.3 Land transactions in Yen Chau
  • 4.4 Distributional effect of the land market.
  • 4.5 Conclusion.
  • 5 Rural Credit Policy in the Mountains of Northern Vietnam: Sustainability, Outreach and Impact
  • 5.1 Introduction
  • 5.2 The data
  • 5.3 The credit market in Yen Chau
  • 5.3.1 Contract terms
  • 5.3.2 Wealth and participation in the credit market
  • 5.4 Formal lending in Yen Chau
  • 5.4.1 Lending procedure
  • 5.4.2 Demand and participation in the formal sector
  • 5.4.3 Is there an interaction between the formal and informal sectors?
  • 5.5 Impact of the government micro-credit program on welfare
  • 5.5.1 The propensity score matching approach
  • 5.5.2 Estimation of the propensity score and matching algorithms
  • 5.5.3 Impact estimation.
  • 5.6 Discussion and policy recommendations
  • 5.7 Conclusion
  • 5.8 Appendix.
  • 6 Ethnic heterogeneity and the formation of social capital in rural communities of Northern Vietnam
  • 6.1 Introduction
  • 6.2 Ethnic heterogeneity and social capital, a review
  • 6.2.1 Defining social capital
  • 6.2.2 Ethnic heterogeneity and public goods
  • 6.2.3 Identity and social network formation
  • 6.3 The data
  • 6.3.1 The settings
  • 6.3.2 The survey
  • 6.3.3 Descriptive statistics
  • 6.4 Empirical strategy
  • 6.4.1 The participation model
  • 6.4.2 The social network capital model
  • 6.5 Results
  • 6.5.1 The determinants of participation
  • 6.5.2 The determinants of households’ social network capital
  • 6.6 Conclusion.
  • 6.7 Appendix
  • 7 Discussion and conclusions
  • 7.1 Discussion of research findings and policy implications
  • 7.2 Orientation for further research
  • Bibliography

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List of Tables

2.1 Description of sample villages

3.1 Description and summary statistics of household-level variables

3.2 Tenurial arrangement and year of land acquisition

3.3 Description and summary statistics of Plot-level variables

3.4 Knowledge about and adoption of SCT

3.5 Household-level model of adoption of agroforestry, probit with sample selection estimates

3.6 Household-level model of adoption of agroforestry, probit with sample selection estimates – Interaction tests

3.7 Plot-level model of adoption of agroforestry, probit estimates and interaction tests

3.8 Instrumental equation and endogeneity test of the land title variable, plot-level probit estimates

4.1 Acquisition modes and contracts of Paddy, Fishpond and Upland plots in Yen Chau

5.1 Loan characteristics by lender type and participation by wealth tercile (2007).

5.2 Participation in the credit market by wealth tercile (2007)

5.3 Tobit estimates of loan interest rates in the non formal sector (2007)

5.4 Determinants of demand and participation in VBARD credit program (2005–2007). Probit with selection

5.5 Determinants of demand and participation in VBSP credit program (2005–2007). Probit with selection

5.6 Poverty outreach of VBSP (2002–2007)

5.7 Joint determinants of participation in the formal and non-formal sector, 2007. Bivariate probit estimates and marginal effects

← XXI | XXII →

5.8 Impact of VBSP credit program, results from propensity score matching estimates

5.9 Principal component factors of the wealth index, descriptive statistics

5.10 Description of household and village level explanatory variables (alphabetical order)

5.11 Estimation of the propensity score matching – Probit estimates

6.1 Village and household-level characteristics by village ethnic heterogeneity

6.2 Descriptive statistics on household credit limit, per expenditure tercile

6.3 Probit and IV Probit estimates of the determinants of participation in local organizations

6.4 OLS estimates of household social network capital

6.5 Description and summary statistics of explanatory variables

6.6 First stage instrumental equation of the participation model


List of Figures

1.1 Poverty rate in Vietnam and Northern Uplands (1998–2008)

1.2 The poverty-environment nexus and structure of the thesis

2.1 Yen Chau district and sample villages

3.1 Land reforms and SCT adoption rates (plot level)

4.1 Land allocation and land transactions in Yen Chau

4.2 Average land holding by tenure contract and year of establishment in hectare per capita

6.1 Estimated marginal effects of variables Native, Inherited social distance and Participation on social network capital, for different values of ethnic fragmentation

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XXIV, 160
ISBN (Hardcover)
Publication date
2014 (August)
Vietnam Entwicklungspolitik institutionelller Rahmen Landwirtschaft
Frankfurt am Main, Berlin, Bern, Bruxelles, New York, Oxford, Wien, 2014. XXIV, 160 pp., 27 tables, 7 graphs

Biographical notes

Camille Saint-Macary (Author)

Camille Saint-Macary studied Development Economics at CERDI (Centre of Study and Research on International Development) at the University of Auvergne (France) and holds a PhD in Agricultural Economics from the University Hohenheim (Germany). She has worked as a research associate at the Department of Rural Development Theory and Policy. Currently she is an economist and research fellow at the French Institute of Research for Development (IRD), member of the DIAL (Development, Institutions and Globalisation) research unit based in Paris.


Title: Microeconomic Impacts of Institutional Change in Vietnam’s Northern Uplands
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186 pages