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Does Agriculture Help Poverty and Inequality Reduction? Evidence from Vietnam

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  • Viet Cuong, Nguyen

Abstract

This paper measures impacts of production of crops, forestry, livestock and aquaculture on household welfare, poverty and inequality in rural Vietnam using fixed-effects regressions. Data used in this paper are from Vietnam Household Living Standard Surveys 2002 and 2004. It is found that impact estimates of the production of crops and forestry on per capita income and consumption expenditure are not statistically significant. Impact estimates of the livestock production are positive and statistically significant for per capita income, but not statistically significant for per capita expenditure. However, the aquacultural production has positive and statistically significant impacts on both income and expenditure. As a result, the aquacultural production helps the producing households reduce the poverty incidence by 4.3 percentage points. It also decreases the poverty gap and poverty severity indexes of the producing households by around 13 percent and 15 percent, respectively. The aquacultural production also reduces the rural expenditure inequality, albeit at an extremely small magnitude.

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Bibliographic Info

Article provided by Greek Association of Agricultural Economists in its journal Agricultural Economics Review.

Volume (Year): 11 (2010)
Issue (Month): 1 (January)
Pages:

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Handle: RePEc:ags:aergaa:118576

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Keywords: Agriculture; farm households; welfare; poverty; inequality; Vietnam; Agricultural and Food Policy; Food Security and Poverty; I32; Q12; O13;

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  1. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," World Bank Economic Review, World Bank Group, World Bank Group, vol. 10(1), pages 1-25, January.
  2. Ruben, Ruerd & Van den berg, Marrit, 2001. "Nonfarm Employment and Poverty Alleviation of Rural Farm Households in Honduras," World Development, Elsevier, vol. 29(3), pages 549-560, March.
  3. Rangarajan, C., 1982. "Agricultural growth and industrial performance in India:," Research reports 33, International Food Policy Research Institute (IFPRI).
  4. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
  5. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
  6. Revenga, Ana, 1997. "Employment and Wage Effects of Trade Liberalization: The Case of Mexican Manufacturing," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 15(3), pages S20-43, July.
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