The effects of trust and land administration on economic outcomes
Evidence from Vietnam
This study examines how the interaction of social trust and institutions, such as land administration, affects household economic decisions in Vietnam.
Using a panel dataset of rural households for 2008-14, we show that negative consequences of the duration of land administration on agricultural investment have been lower in rural households with higher level of trust. Higher-trust households, when facing higher barrier from land administration, tend to invest more on agricultural land compared to low-trust households where household heads are male.
We also find that high-trust households enhance land property rights when facing obstacles from land administration.