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National pro-poor spending programmes and their effect on income inequality and poverty: Evidence from Vietnam

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  • Phuc Van Phan
  • Martin O’brien
  • Silvia Mendolia
  • Alfredo Paloyo

Abstract

This article examines the causal effects of the national (pro-poor) targeted programmes (NTPs) on both poverty incidence and inequality in Vietnam over the period 2002–2010. While the links between NTPs and poverty alleviation and income inequality have previously been analysed independently, this study is the first to offer a comprehensive analysis of NTPs expenditure on poverty and inequality simultaneously. Applying the system generalized method of moments estimator to a panel of Vietnamese regional data, we are unable to establish that NTPs have significantly mitigated poverty incidence. However, we estimate that NTPs have significantly increased inequality. We offer possible explanations why the NTPs have resulted in these unintended outcomes and discuss potential policies which can reduce both poverty and inequality.

Suggested Citation

  • Phuc Van Phan & Martin O’brien & Silvia Mendolia & Alfredo Paloyo, 2017. "National pro-poor spending programmes and their effect on income inequality and poverty: Evidence from Vietnam," Applied Economics, Taylor & Francis Journals, vol. 49(55), pages 5579-5590, November.
    • Handle: RePEc:taf:applec:v:49:y:2017:i:55:p:5579-5590
    DOI: 10.1080/00036846.2017.1313957
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    Cited by:

    1. Bertoni, Marco & Huynh, Quynh & Rocco, Lorenzo, 2019. "The Effects of the Vietnam Hunger Eradication and Poverty Reduction Program on Schooling," IZA Discussion Papers 12747, Institute of Labor Economics (IZA).
    2. Junying Lin & Zhonggen Zhang & Lingli Lv, 2019. "The Impact of Program Participation on Rural Household Income: Evidence from China’s Whole Village Poverty Alleviation Program," Sustainability, MDPI, vol. 11(6), pages 1-15, March.
    3. Phuc Phan & Martin O’Brien, 2019. "Multidimensional Wellbeing Inequality in a Developing Country: A Case Study of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 157-183, August.
    4. Diana Barros & Aurora A. C. Teixeira, 2021. "Unlocking the black box: A comprehensive meta-analysis of the main determinants of within-region income inequality," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 41(1), pages 55-93, February.

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