Rice land protection in a transitional economy: The case of Vietnam
Chu Long, Nguyen Hoa-Thi-Minh, Tom Kompas, Dang Khoi, Bui Trinh
HELIYON | ELSEVIER SCI LTD | Published : 2021
Agricultural land protection (ALP) is a standard policy response to a desire for food security. However, ALP may result in a misallocation of resources. Examining rice land policy in Vietnam, we determine the optimal level of rice land protected against other crops using a stochastic optimization model built on top of a general equilibrium framework, combined with sequential micro-simulations on household data. We find that converting part of protected rice land enhances economic efficiency. Nonetheless, the policy is relatively pro-rich, implying a trade-off between poverty reduction and economic efficiency, making some households in already poor areas worse off. Our approach can be applied..View full abstract
This work was supported by the Restructuring for a more Competitive Vietnam Project, the Australian Department for Foreign Affairs and Trade (DFAT) and College of Asia and the Pacific, the Australian National University.