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Inter-provincial migration and inequality during Vietnam's transition

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  • Phan, Diep
  • Coxhead, Ian

Abstract

Vietnam's economic boom during the transition to a market economy has centered on very rapid growth in some sectors and provinces, yet poverty has diminished across the entire country. With capital investments highly concentrated by province and sector, geographic labor mobility may be critical in spreading the gains from growth. Conversely, rising income inequality may be attributable in part to impediments to migration. We first use census data to investigate migration patterns and determinants. We then examine the role of migration as an influence on income ratios between pairs of provinces. The former analysis robustly confirms economic motives for migration but also suggests the existence of poverty-related labor immobility at the provincial level. Examination of income ratios between pairs of provinces reveals that the impact of migration on inequality can be either negative or positive. A robust inequality-reducing impact of migration is found for migration flows into provinces where most of Vietnam's trade-oriented industrial investments are located.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 91 (2010)
Issue (Month): 1 (January)
Pages: 100-112

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Handle: RePEc:eee:deveco:v:91:y:2010:i:1:p:100-112

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Web page: http://www.elsevier.com/locate/devec

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Keywords: Labor Migration Inequality Vietnam;

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References

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  1. Alan de Brauw & Tomoko Harigaya, 2007. "Seasonal Migration and Improving Living Standards in Vietnam," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(2), pages 430-447.
  2. Yuri Andrienko & Sergei Guriev, 2004. "Determinants of interregional mobility in Russia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(1), pages 1-27, 03.
  3. Nguyen Thu Phuong & Tran Ngo Thi Minh Tam & Nguyen Thi Nguyet & Remco Oostendorp, 2008. "Determinants and Impacts of Migration in Vietnam," Working Papers 01, Development and Policies Research Center (DEPOCEN), Vietnam.
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Citations

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Cited by:
  1. Holger Breinlich & Gianmarco I.P. Ottaviano & Jonathan R.W. Temple, 2013. "Regional growth and regional decline," Economics Discussion Papers 729, University of Essex, Department of Economics.
  2. Eliane El Badaoui & Eric Strobl & Frank Walsh, 2014. "The Impact of Internal Migration on Local Labour Markets in Thailand," EconomiX Working Papers 2014-12, University of Paris West - Nanterre la Défense, EconomiX.
  3. Eliane El Badaoui & Eric Strobl & Frank Walsh, 2014. "The Impact of Internal Migration on Local Labour Markets in Thailand," Working Papers 2014-071, Department of Research, Ipag Business School.
  4. Ali Berker, 2010. "The Labor Market Consequences of Internal Migration in Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1029, Koc University-TUSIAD Economic Research Forum.
  5. Christian Dustmann & Anna Okatenko, 2013. "Out-migration, Wealth Constraints, and the Quality of Local Amenities," CReAM Discussion Paper Series 1313, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  6. Fukase, Emiko, 2013. "Foreign job opportunities and internal migration in Vietnam," Policy Research Working Paper Series 6420, The World Bank.
  7. Coxhead, Ian & Linh, Vu Hoang & Le, Dong Tam, 2011. "Global Market Shocks and Poverty in Vietnam: The Case of Rice," Staff Paper Series 559, University of Wisconsin, Agricultural and Applied Economics.
  8. Coxhead, Ian & Chan, Nguyen Van, 2011. "Vietnam's New Environmental Tax Law: What Will It Cost? Who Will Pay?," Staff Paper Series 561, University of Wisconsin, Agricultural and Applied Economics.
  9. Elena Vakulenko, 2014. "Does migration lead to regional convergence in Russia?," HSE Working papers WP BRP 53/EC/2014, National Research University Higher School of Economics.
  10. Tatiane Menezes & R. Silveira-Neto & Carlos Azzoni, 2012. "Demography and evolution of regional inequality," The Annals of Regional Science, Springer, vol. 49(3), pages 643-655, December.
  11. Vakulenko, Elena, 2012. "Migration in Russian cities: Econometric analysis," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 25(1), pages 25-50.
  12. Liu, Yang, 2012. "Does Internal Immigration Always Lead to Urban Unemployment in Emerging Economies? : A Structural Approach Based on Data from China," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 53(1), pages 85-105, June.
  13. Akarca, Ali T. & Tansel, Aysit, 2012. "Southwest as the New Internal Migration Destination in Turkey," IZA Discussion Papers 6627, Institute for the Study of Labor (IZA).
  14. Sergei Guriev & Elena Vakulenko, 2012. "Convergence between Russian regions," Working Papers w0180, Center for Economic and Financial Research (CEFIR).

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