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Trade Liberalisation and Poverty Dynamics in Vietnam

In: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis

Author

Listed:
  • Yoko Niimi
  • Puja Vasudeva Dutta
  • L. Alan Winters

Abstract

This paper explores the poverty impact of Vietnam's trade liberalisation over the 1990s and asks how well they could have been predicted from prior data. We identify policy changes and their major effects on trade and prices. We then seek the effects of these changes in a panel comprising 4,302 households observed in 1993 and 1998. Using a multinomiallogit model, we find evidence that trade liberalisation influenced household poverty status and that considering trade effects would help to identify winners and losers a priori. We also find evidence that trade liberalisation reduced poverty substantially over the period 1993-1998.

Suggested Citation

  • Yoko Niimi & Puja Vasudeva Dutta & L. Alan Winters, 2015. "Trade Liberalisation and Poverty Dynamics in Vietnam," World Scientific Book Chapters, in: Non-Tariff Barriers, Regionalism and Poverty Essays in Applied International Trade Analysis, chapter 16, pages 333-365, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814571272_0016
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    Cited by:

    1. Pietrelli, Rebecca & Salvatici, Luca & Montalbano, Pierluigi, 2015. "Food security and farmers' participation to value supply chain: the case of Ugandan maize," 2015 Fourth Congress, June 11-12, 2015, Ancona, Italy 207354, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Barbara Coello & Madior Fall & Akiko Suwa-Eisenmann, 2010. "Trade Liberalization And Poverty Dynamics in Vietnam 2002-2006," Working Papers halshs-00966364, HAL.
    3. Winters, L. Alan, 2014. "Globalization, Infrastructure, and Inclusive Growth," ADBI Working Papers 464, Asian Development Bank Institute.
    4. Adugna Lemi, 2012. "Trade Liberalization and Change in Poverty Status in Rural Ethiopia: What are the Links?," International Economic Journal, Taylor & Francis Journals, vol. 26(4), pages 609-633, August.
    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. Magrini, Emiliano & Montalbano, Pierluigi & Winters, L. Alan, 2018. "Households’ vulnerability from trade in Vietnam," World Development, Elsevier, vol. 112(C), pages 46-58.
    7. Le, Minh Son, 2014. "Trade openness and household welfare within a country: A microeconomic analysis of Vietnamese households," Journal of Asian Economics, Elsevier, vol. 33(C), pages 56-70.
    8. L. Alan Winters & Antonio Martuscelli, 2014. "Trade Liberalization and Poverty: What Have We Learned in a Decade?," Annual Review of Resource Economics, Annual Reviews, vol. 6(1), pages 493-512, October.
    9. Liyanaarachchi, Tilak S. & Naranpanawa, Athula & Bandara, Jayatilleke S., 2016. "Impact of trade liberalisation on labour market and poverty in Sri Lanka. An integrated macro-micro modelling approach," Economic Modelling, Elsevier, vol. 59(C), pages 102-115.
    10. 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.
    11. Montalbano, Pierluigi, 2011. "Trade Openness and Developing Countries' Vulnerability: Concepts, Misconceptions, and Directions for Research," World Development, Elsevier, vol. 39(9), pages 1489-1502, September.
    12. Wanissa Suanin, 2021. "Demand Elasticity of Processed Food Exports from Developing Countries: A Panel Analysis of US Imports," Journal of Agricultural Economics, Wiley Blackwell, vol. 72(2), pages 413-429, June.
    13. Remco H. Oostendorp & Doan Hong Quang, 2011. "The Impact of Trade Liberalization on the Return to Education in Vietnam: Wage versus Employment Effect," Tinbergen Institute Discussion Papers 11-060/3, Tinbergen Institute, revised 04 Apr 2011.
    14. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex Business School.
    15. Henning Tarp Jensen & Finn Tarp, 2005. "Trade Liberalization and Spatial Inequality: a Methodological Innovation in a Vietnamese Perspective," Review of Development Economics, Wiley Blackwell, vol. 9(1), pages 69-86, February.
    16. Andy McKay & Finn Tarp, 2014. "Distributional Impacts of the 2008 Global Food Price Spike in Vietnam," WIDER Working Paper Series wp-2014-030, World Institute for Development Economic Research (UNU-WIDER).
    17. McKay, Andy & Tarp, Finn, 2014. "Distributional impacts of the 2008 global food price spike in Vietnam," WIDER Working Paper Series 030, World Institute for Development Economic Research (UNU-WIDER).
    18. Thang T. Vo & Dinh X. Nguyen, 2021. "Impact of Trade Liberalization on Household Welfare: An Analysis Using Household Exposure-to-Trade Indices," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 153(2), pages 503-531, January.
    19. Woocheol Lee, 2023. "Trade Liberalization, Distributional Coalitions and Economic Growth: A Case of Vietnam," Sustainability, MDPI, vol. 15(14), pages 1-19, July.
    20. Emiliano Magrini & Pierluigi Montalbano & L. Alan Winters, 2017. "Vulnerability from trade in Vietnam," Working Paper Series 2017, Department of Economics, University of Sussex Business School.

    More about this item

    Keywords

    International Trade; Poverty; Regional Trading Arrangements (RTAs); Trade Barriers; Non-Tariff Barriers;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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