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Measuring the impact of cash crops on household expenditure and poverty in rural Viet Nam

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  • Nguyen Viet Cuong

    ()
    (Faculty of Trade and International Economics, National Economics University, Viet Nam)

Abstract

This paper measures the impacts of cash crops on household consumption expenditure and poverty in rural Viet Nam using data from the Viet Nam household living standards surveys (VHLSSs) of 2002 and 2004. It has been found that revenues from cash crops have positive and statistically significant impacts on per capita expenditure. More specifically, an increase of 1 Viet Nam dong (VND) in rice revenues leads to an increase of 0.019 VND in per capita expenditure, and the corresponding figures for revenues from annual crops, perennial crops and fruits are 0.038, 0.040 and 0.036, respectively. As a result, crop sales have positive and statistically significant impacts on poverty reduction for crop-growing households and the rural population. The poverty-reducing impacts are found to be positive for all three Foster-Greer-Thorbecke poverty measures.

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Bibliographic Info

Article provided by United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in its journal Asia-Pacific Development Journal.

Volume (Year): 16 (2009)
Issue (Month): 2 (December)
Pages: 87-112

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Handle: RePEc:unt:jnapdj:v:16:y:2009:i:2:p:87-112

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Keywords: Cash crop; agriculture; farm households; welfare; poverty; Viet Nam;

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  1. Ruben, Ruerd & Van den berg, Marrit, 2001. "Nonfarm Employment and Poverty Alleviation of Rural Farm Households in Honduras," World Development, Elsevier, vol. 29(3), pages 549-560, March.
  2. Jeffrey M. Wooldridge, 2001. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232197, December.
  3. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
  4. van de Walle, Dominique, 2004. "Testing Vietnam's public safety net," Journal of Comparative Economics, Elsevier, vol. 32(4), pages 661-679, December.
  5. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  6. L. Alan Winters, 2000. "Trade Liberalisation and Poverty," PRUS Working Papers 07, Poverty Research Unit at Sussex, University of Sussex.
  7. Timmer, C. Peter, 2002. "Agriculture and economic development," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 29, pages 1487-1546 Elsevier.
  8. Ann Harrison, 2006. "Globalization and Poverty," NBER Working Papers 12347, National Bureau of Economic Research, Inc.
  9. Lanjouw, Jean O. & Lanjouw, Peter, 1995. "Rural nonfarm employment : a survey," Policy Research Working Paper Series 1463, The World Bank.
  10. L. Alan Winters & Neil McCulloch & Andrew McKay, 2004. "Trade Liberalization and Poverty: The Evidence So Far," Journal of Economic Literature, American Economic Association, vol. 42(1), pages 72-115, March.
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