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Storm in a rice bowl: Rice reform and poverty in Vietnam in the 1990s

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  • Yoko Niimi
  • Puja Vasudeva-Dutta
  • L. Alan Winters

Abstract

This paper analyses the poverty impact of Vietnam’s reforms, especially with reference to the rice economy, during the 1990s. It reviews trade and institutional reforms that directly impinged on the rice sector, and the trends in rice production, consumption and prices throughout the 1990s. We then analyse the impact of rice production on poverty dynamics by estimating a multinomial logit model based on a panel of 4,302 households. Our results show that the increased rice production as a result of various reforms contributed to poverty reduction. We also explore whether households that are disproportionately heavy consumers of rice suffered from the price increase. We examine whether allowing the poverty line to reflect household-specific consumption bundles would change the identification of poverty dynamics. We conclude that unless the large changes in relative prices are accompanied by massive differences in consumption baskets across households accounting for differences in consumption preferences would make little difference in assessing the poverty implications of reform.

Suggested Citation

  • Yoko Niimi & Puja Vasudeva-Dutta & L. Alan Winters, 2004. "Storm in a rice bowl: Rice reform and poverty in Vietnam in the 1990s," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 9(2), pages 170-190.
    • Handle: RePEc:taf:rjapxx:v:9:y:2004:i:2:p:170-190
    DOI: 10.1080/1354786042000207326
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    Citations

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    Cited by:

    1. Hoang, Viet-Ngu & Vu, Duc-Cuong, 2021. "On the effects of trade on multidimensional deprivation: Evidence from Vietnam’s rice growing households," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 476-485.
    2. Kamil Maitah & Luboš Smutka & Jeta Sahatqija & Mansoor Maitah & Nguyen Phuong Anh, 2020. "Rice as a Determinant of Vietnamese Economic Sustainability," Sustainability, MDPI, vol. 12(12), pages 1-12, June.
    3. Nouve, Kofi & Wodon, Quentin, 2008. "Impact of rising rice prices and policy responses in Mali : simulations with a dynamic CGE model," Policy Research Working Paper Series 4739, The World Bank.
    4. Nguyen, Quang & Kim, Doo-Chul, 2020. "Reconsidering rural land use and livelihood transition under the pressure of urbanization in Vietnam: A case study of Hanoi," Land Use Policy, Elsevier, vol. 99(C).
    5. Aviad Tur-Sinai & Noah Lewin-Epstein, 2020. "Transitions in Giving and Receiving Intergenerational Financial Support in Middle and Old Age," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(3), pages 765-791, August.
    6. John Thoburn, 2009. "Vietnam as a Role Model for Development," WIDER Working Paper Series RP2009-30, World Institute for Development Economic Research (UNU-WIDER).
    7. Trung X. Hoang & Cong S. Pham & Mehmet A. Ulubaşoğlu, 2016. "The role of rice in poverty dynamics in rural Vietnam: 2002–2008," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(1), pages 132-150, January.
    8. Tsimpo, Clarence & Wodon, Quentin, 2008. "Rice prices and poverty in Liberia," Policy Research Working Paper Series 4742, The World Bank.
    9. Wodon, Quentin & Zaman, Hassan, 2008. "Rising food prices in Sub-Saharan Africa : poverty impact and policy responses," Policy Research Working Paper Series 4738, The World Bank.

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