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Household determinants of poverty in Savannakhet, Laos: Binary choice model approach

Author

Listed:
  • Siwarat Kuson

    (Chiang Mai University)

  • Songsak Sriboonchitta

    (Chiang Mai University)

  • Peter Calkins

    (Chiang Mai University)

Abstract

Lao PDR is one of the economically least developed countries in the world. As a member of the GMS region and the ASEAN, Lao PDR stands to benefit from the growth of the GMS region by the East West Economic Corridor that links the Central Region of Lao PDR with Thailand and Vietnam through Savannakhet. This paper uses a detailed household survey data set to identify, sign, and test the significance of the key factors that affect poverty by location and well-being subgroup among the urban, semi-urban and rural populations of Savannakhet. We found that household size, distance from the EWEC, agriculture landholding and working in the agricultural sector are causes of household poverty. Agricultural employment has a particularly large impact in rural areas. Other factors such as age, gender and educational level of the household head evidence no influence in determining poverty. One possible reason could be that infrastructure has been improved only in recent years. Thus, economic opportunities vary widely for any given characteristic of the household head.

Suggested Citation

  • Siwarat Kuson & Songsak Sriboonchitta & Peter Calkins, 2012. "Household determinants of poverty in Savannakhet, Laos: Binary choice model approach," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 1(3), pages 33-52, September.
    • Handle: RePEc:chi:journl:v:1:y:2012:i:3:p:33-52
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    Cited by:

    1. Phimwalun Srithongkul & Pathairat Pastpipatkul, 2013. "Impacts of economic variables and the corruption perception index on human development," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(1), pages 71-78, March.

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    More about this item

    Keywords

    Lao PDR; Poverty; Binary choice; East West Economic Corridor.;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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