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WP/041 The Effects of Rural Land Right Security on Labour Structural Transformation and Urbanization: Evidence from Thailand

This paper attempts to contribute to the understanding of the impacts of secure rural agricultural land rights on labour structural transformation from agriculture to non-agriculture as well as on urbanization, with a specific focus on Thailand. Using province-level panel data and instrumental variable strategy, partial land right entitlement (known in Thailand as SPK4-01 titling) is found to have a positive impact on labour movement towards the non-agricultural sector. In particular, approximately 27 per cent of this impact can be explained by enhanced farm productivity. This, in addition, implies that the reduction of the opportunity costs of off-farm employment, which is also a predicted positive impact of titling on non-agricultural employment, should account for the rest of the overall impact on labour structural transformation Although SPK4-01 titling alone is found to have no significant effect on urbanization, its impact depends significantly on within-province transport infrastructure. More specifically, rural land right security increases urbanization more in provinces with poorer road networks. In other words, secure land rights lead to urban concentration and urban non-farm diversification only when it is relatively costly to commute within the province.
Publisher:
UNU-WIDER
Series:
WIDER Working Paper
Volume:
2012/41
Title:
WP/041 The Effects of Rural Land Right Security on Labour Structural Transformation and Urbanization: Evidence from Thailand
Authors:
Thanyaporn Chankrajang
Publication date:
April 2012
ISBN 13 Web:
978-92-9230-504-8
Copyright holder:
© UNU-WIDER
Copyright year:
2012
Keywords:
land right security, labour structural transformation, urbanization
JEL:
O13, O18, Q15
Project:
New Directions in Development Economics (2010)
Sponsor:
UNU-WIDER gratefully acknowledges the financial contributions to the research programme by the governments of Denmark (Ministry of Foreign Affairs), Finland (Ministry for Foreign Affairs), Sweden (Swedish International Development Cooperation Agency—Sida) and the United Kingdom (Department for International Development).
Format:
online
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