Agricultural Factor Misallocation and Land Rentals in Vietnam

This paper explores the extent of factor misallocation in Vietnam’s cropping sector and how it is related to land rental markets. I distinguish between market transactions (i.e. those that are entitled to some form of compensation) and non-market (i.e. those that are for free and/or among closely related people). My findings show that land rentals are an important mechanism to improve agricultural factors’ allocation, however temporary land transfers only improve efficiency when they happen through the market