Resource information
The extent to which households should be
allowed to transfer their land rights in post-socialist
transition economies is of considerable policy interest. The
authors use data from Vietnam, a transition country that
allows rental and sales of land use rights, to identify
factors conducive to the development of land markets and to
assess the extent to which land transfers enhance productive
efficiency and transfer land to the poor. They find that
activity in both rental and sales markets has increased
rapidly, enhanced by the possession of long-term use rights
and off-farm employment, and contributing to greater equity
and efficiency of land use. While there is evidence for
distress sales by households that experience a shock
(death), the scope for such sales is reduced by
well-functioning credit markets. Well-defined land rights
and appropriate safety nets will thus help transition
economies to realize the benefits from the operation of land markets.
