Journal article

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

Abstract

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..

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University of Melbourne Researchers

Grants

Funding Acknowledgements

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.