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Political Connections and Investment in Rural Vietnam

Publikation: Working paperForskning

Standard

Political Connections and Investment in Rural Vietnam. / Markussen, Thomas; Tarp, Finn.

Helsinki : UNU-WIDER, 2011.

Publikation: Working paperForskning

Harvard

Markussen, T & Tarp, F 2011 'Political Connections and Investment in Rural Vietnam' UNU-WIDER, Helsinki. <http://www.wider.unu.edu/publications/working-papers/2011/en_GB/wp2011-037/>

APA

Markussen, T., & Tarp, F. (2011). Political Connections and Investment in Rural Vietnam. UNU-WIDER. http://www.wider.unu.edu/publications/working-papers/2011/en_GB/wp2011-037/

Vancouver

Markussen T, Tarp F. Political Connections and Investment in Rural Vietnam. Helsinki: UNU-WIDER. 2011.

Author

Markussen, Thomas ; Tarp, Finn. / Political Connections and Investment in Rural Vietnam. Helsinki : UNU-WIDER, 2011.

Bibtex

@techreport{21bccbb141044098aede9ec8a2d9588c,
title = "Political Connections and Investment in Rural Vietnam",
abstract = "This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers{\textquoteright} agricultural investment decisions. Our main result is that households significantly increase theirinvestment in land improvement as a result of relatives moving into public office. Connections to office holders appear to be important for investment because they strengthen de facto land property rights and improve access to off-farm employment andto informal loans. The findings underline the importance of informal networks for economic behaviour in environments with developing institutions and markets. They also suggest the presence of an untapped potential for economic development: ifhouseholds without connections could obtain equally strong property rights and access to credit and insurance as the well-connected households, investment levels would rise substantially.",
keywords = "Faculty of Social Sciences",
author = "Thomas Markussen and Finn Tarp",
note = "JEL classification: D73, H7, O12, Q15",
year = "2011",
language = "English",
isbn = "978-92-9230-402-7",
publisher = "UNU-WIDER",
type = "WorkingPaper",
institution = "UNU-WIDER",

}

RIS

TY - UNPB

T1 - Political Connections and Investment in Rural Vietnam

AU - Markussen, Thomas

AU - Tarp, Finn

N1 - JEL classification: D73, H7, O12, Q15

PY - 2011

Y1 - 2011

N2 - This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers’ agricultural investment decisions. Our main result is that households significantly increase theirinvestment in land improvement as a result of relatives moving into public office. Connections to office holders appear to be important for investment because they strengthen de facto land property rights and improve access to off-farm employment andto informal loans. The findings underline the importance of informal networks for economic behaviour in environments with developing institutions and markets. They also suggest the presence of an untapped potential for economic development: ifhouseholds without connections could obtain equally strong property rights and access to credit and insurance as the well-connected households, investment levels would rise substantially.

AB - This paper uses household panel data from rural Vietnam to explore the effects of having a relative in a position of political or bureaucratic power on farmers’ agricultural investment decisions. Our main result is that households significantly increase theirinvestment in land improvement as a result of relatives moving into public office. Connections to office holders appear to be important for investment because they strengthen de facto land property rights and improve access to off-farm employment andto informal loans. The findings underline the importance of informal networks for economic behaviour in environments with developing institutions and markets. They also suggest the presence of an untapped potential for economic development: ifhouseholds without connections could obtain equally strong property rights and access to credit and insurance as the well-connected households, investment levels would rise substantially.

KW - Faculty of Social Sciences

M3 - Working paper

SN - 978-92-9230-402-7

BT - Political Connections and Investment in Rural Vietnam

PB - UNU-WIDER

CY - Helsinki

ER -

ID: 35374433