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Poverty Transition in Rural Vietnam: The Role of Migration and Remittances

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  • Mulubrhan Amare
  • Lena Hohfeld

Abstract

This study combines insights of the New Economics of Labour Migration with the asset-based approach to welfare dynamics using panel household data from Vietnam. This method allows us to determine whether poverty transitions induced by remittances are actually structural, that is, based on asset growth and therefore long term, or stochastic, that is, based only on short-term increases in income, which implies a risk of falling back into poverty. To control for endogeneity of remittances, we use household fixed effects and instrumental variables estimation. The paper shows that remittances have a positive impact on asset growth and that the impact differs with welfare status and ethnicity.

Suggested Citation

  • Mulubrhan Amare & Lena Hohfeld, 2016. "Poverty Transition in Rural Vietnam: The Role of Migration and Remittances," Journal of Development Studies, Taylor & Francis Journals, vol. 52(10), pages 1463-1478, October.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:10:p:1463-1478
    DOI: 10.1080/00220388.2016.1139696
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    Cited by:

    1. Nguyen, Duc Loc & Grote, Ulrike & Nguyen, Trung Thanh, 2019. "Migration, crop production and non-farm labor diversification in rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 175-187.
    2. Huy, Hoang Trieu & Nguyen, Trung Thanh, 2019. "Cropland rental market and farm technical efficiency in rural Vietnam," Land Use Policy, Elsevier, vol. 81(C), pages 408-423.
    3. Arapi-Gjini, Arjola & Möllers, Judith & Herzfeld, Thomas, 2020. "Measuring dynamic effects of remittances on poverty and inequality with evidence from Kosovo," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 58(4), pages 283-308.
    4. David Granada Donato, 2022. "Effects of internal migration on labour market behaviour of families left-behind in Vietnam," TVSEP Working Papers wp-023, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    5. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialization and asset growth for poverty reduction: Evidence from panel data for rural Vietnam," TVSEP Working Papers wp-032, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    6. Bach Nguyen, 2022. "Internal migration and earnings: Do migrant entrepreneurs and migrant employees differ?," Papers in Regional Science, Wiley Blackwell, vol. 101(4), pages 901-944, August.
    7. Buehler, Dorothee & Cunningham, Wendy, 2018. "Shocks, vulnerability and income generating capacity of rural households: Evidence from Southeast Asia," TVSEP Working Papers wp-010, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    8. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialisation, asset growth and poverty in rural Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 388-416, July.
    9. Nobuaki Yamashita & Trong‐Anh Trinh, 2022. "Long‐Term Effects of Vietnam War: Agent Orange and the Health of Vietnamese People After 30 Years," Asian Economic Journal, East Asian Economic Association, vol. 36(2), pages 180-202, June.
    10. Emon Kalyan Chowdhury & Bablu Kumar Dhar & Md.Abu Issa Gazi, 2023. "Impact of Remittance on Economic Progress: Evidence from Low-Income Asian Frontier Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 382-407, March.
    11. Thanh-Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2020. "Credit and Ethnic Consumption Inequality in the Central Highlands of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 148(1), pages 143-172, February.
    12. Grabrucker, Katharina, 2021. "Effects of internal rural-urban migration on rural non-farm enterprises: Evidence from Thailand and Vietnam," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-85-21, University of Passau, Faculty of Business and Economics.
    13. Thi Long Vy Le & Truong Lam Do & Huu Nhuan Nguyen & Trung Thanh Nguyen, 2023. "Farmland accumulation and rural household income: evidence from the Red River Delta region of Vietnam," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 69(11), pages 458-469.
    14. Satoshi Shimizutani & Eiji Yamada, 2021. "Resilience against the pandemic: The impact of COVID-19 on migration and household welfare in Tajikistan," PLOS ONE, Public Library of Science, vol. 16(9), pages 1-20, September.
    15. Duy Linh Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2023. "Shocks, household consumption, and livelihood diversification: a comparative evidence from panel data in rural Thailand and Vietnam," Economic Change and Restructuring, Springer, vol. 56(5), pages 3223-3255, October.
    16. Pan, Zehan & Xu, Wei & Wang, Guixin & Li, Sen & Yang, Chuankai, 2020. "Will remittances suppress or increase household income in the migrant-sending areas? Modeling the effects of remittances in rural China," China Economic Review, Elsevier, vol. 61(C).
    17. Tebboth, M.G.L. & Conway, D. & Adger, W.N., 2019. "Mobility endowment and entitlements mediate resilience in rural livelihood systems," LSE Research Online Documents on Economics 100210, London School of Economics and Political Science, LSE Library.

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