The determinants of income diversification of households after land acquisition in Hau Giang province

Abstract

This study is aimed at analyzing the income diversification and determinants of income diversification and income of households after land acquisition in Hau Giang province. The dataset employed in this research included 150 observations collected by the conditioned random method that is the households with acquired land. The paper employed descriptive statistics, comparative methods, analysis of Simpson Index Diversification based on the theory of livelihood resources of DFID and linear regression model to determine the factors affecting the income diversification, impact on the level of income diversification and household income. The analysis results indicated that the level of income diversification of households is quite high (with an SID index of 0.8), but up to 40% of households have only one source of income. The results of the regression model analysis revealed that there are three factors including income source, age and occupation that affect the level of income diversification of the household. The results of the second regression model illustrates that there are five factors including the degree of income diversification, the number of laborers in the family, the level of investment in production and business of the household from compensation, the experience of household head, household credit has an effect on household income. Based on the analysis results, the paper proposes some relevant solutions on the use of investment money, employment, experience and problems related to loans in production to ensure income stability for households in the study area.