IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-01109452.html
   My bibliography  Save this paper

Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam

Author

Listed:
  • Mohamed Arouri

    (LEO - Laboratoire d'économie d'Orleans [2008-2011] - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

  • Adel Ben Youssef

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Cuong Nguyen-Viet

    (Chercheur indépendant)

Abstract

The study usescommune fixed-effect regressions to estimate the effect of natural disasters on household welfare and poverty, and subsequently examines household and community characteristics that can strengthen resilience of households to natural disasters. We find that all the three disaster types considered in this study including storms, floods and droughts have negative effects on household income and expenditure. Access to micro-credit, internal remittances and social allowances can help households strengthen the resilience to natural disasters. Households in communes with higher expenditure mean and more equal expenditure distribution are more resilient to natural disasters.

Suggested Citation

  • Mohamed Arouri & Adel Ben Youssef & Cuong Nguyen-Viet, 2015. "Natural Disasters, Household Welfare, and Resilience: Evidence from Rural Vietnam," Post-Print halshs-01109452, HAL.
    • Handle: RePEc:hal:journl:halshs-01109452
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01109452
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-01109452/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Marrit Van den Berg & Nguyen Viet Cuong, 2011. "Impact of Public and Private Cash Transfers on Poverty and Inequality: Evidence from Vietnam," Development Policy Review, Overseas Development Institute, vol. 29(6), pages 689-728, November.
    2. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
    3. Okuyama, Yasuhide & Sahin, Sebnem, 2009. "Impact estimation of disasters : a global aggregate for 1960 to 2007," Policy Research Working Paper Series 4963, The World Bank.
    4. Anh Tuan Bui & Mardi Dungey & Cuong Viet Nguyen & Thu Phuong Pham, 2014. "The impact of natural disasters on household income, expenditure, poverty and inequality: evidence from Vietnam," Applied Economics, Taylor & Francis Journals, vol. 46(15), pages 1751-1766, May.
    5. Noy, Ilan, 2009. "The macroeconomic consequences of disasters," Journal of Development Economics, Elsevier, vol. 88(2), pages 221-231, March.
    6. Hanan G. Jacoby & Emmanuel Skoufias, 1997. "Risk, Financial Markets, and Human Capital in a Developing Country," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 64(3), pages 311-335.
    7. Sunil Prashar & Rajib Shaw & Yukiko Takeuchi, 2012. "Assessing the resilience of Delhi to climate-related disasters: a comprehensive approach," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 64(2), pages 1609-1624, November.
    8. World Bank & United Nations, 2010. "Natural Hazards, UnNatural Disasters : The Economics of Effective Prevention," World Bank Publications - Books, The World Bank Group, number 2512, December.
    9. Del Ninno, Carlo & Dorosh, Paul A. & Smith, Lisa C., 2003. "Public Policy, Markets and Household Coping Strategies in Bangladesh: Avoiding a Food Security Crisis Following the 1998 Floods," World Development, Elsevier, vol. 31(7), pages 1221-1238, July.
    10. Mottaleb, Khondoker Abdul & Mohanty, Samarendu & Hoang, Hoa Thi Khanh & Rejesus, Roderick M., 2013. "The effects of natural disasters on farm household income and expenditures: A study on rice farmers in Bangladesh," Agricultural Systems, Elsevier, vol. 121(C), pages 43-52.
    11. Rosenzweig, Mark R & Binswanger, Hans P, 1993. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Economic Journal, Royal Economic Society, vol. 103(416), pages 56-78, January.
    12. Carter, Michael R. & Little, Peter D. & Mogues, Tewodaj & Negatu, Workneh, 2007. "Poverty Traps and Natural Disasters in Ethiopia and Honduras," World Development, Elsevier, vol. 35(5), pages 835-856, May.
    13. Carol Newman & Fiona Wainwright, 2011. "Income Shocks and Household Risk-Coping Strategies: Evidence from Rural Vietnam," The Institute for International Integration Studies Discussion Paper Series iiisdp358, IIIS.
    14. Robert Jensen, 2000. "Agricultural Volatility and Investments in Children," American Economic Review, American Economic Association, vol. 90(2), pages 399-404, May.
    15. Nguyen Viet, Cuong, 2011. "Poverty projection using a small area estimation method: Evidence from Vietnam," Journal of Comparative Economics, Elsevier, vol. 39(3), pages 368-382, September.
    16. Skoufias, Emmanuel, 2003. "Economic Crises and Natural Disasters: Coping Strategies and Policy Implications," World Development, Elsevier, vol. 31(7), pages 1087-1102, July.
    17. Bigman, David & Fofack, Hippolyte, 2000. "Geographical Targeting for Poverty Alleviation: An Introduction to the Special Issue," The World Bank Economic Review, World Bank, vol. 14(1), pages 129-145, January.
    18. McKenzie, David J., 2003. "How do Households Cope with Aggregate Shocks? Evidence from the Mexican Peso Crisis," World Development, Elsevier, vol. 31(7), pages 1179-1199, July.
    19. Noy, Ilan & Vu, Tam Bang, 2010. "The economics of natural disasters in a developing country: The case of Vietnam," Journal of Asian Economics, Elsevier, vol. 21(4), pages 345-354, August.
    20. Nguyen Viet CUONG, 2008. "Is A Governmental Micro‐Credit Program For The Poor Really Pro‐Poor? Evidence From Vietnam," The Developing Economies, Institute of Developing Economies, vol. 46(2), pages 151-187, June.
    21. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
    22. Jakobsen, Kristian Thor, 2012. "In the Eye of the Storm—The Welfare Impacts of a Hurricane," World Development, Elsevier, vol. 40(12), pages 2578-2589.
    23. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    24. Baker, Judy L. & Grosh, Margaret E., 1994. "Poverty reduction through geographic targeting: How well does it work?," World Development, Elsevier, vol. 22(7), pages 983-995, July.
    25. Masozera, Michel & Bailey, Melissa & Kerchner, Charles, 2007. "Distribution of impacts of natural disasters across income groups: A case study of New Orleans," Ecological Economics, Elsevier, vol. 63(2-3), pages 299-306, August.
    26. Terry Cannon, 2008. "Reducing People's Vulnerability to Natural Hazards: Communities and Resilience," WIDER Working Paper Series RP2008-34, World Institute for Development Economic Research (UNU-WIDER).
    27. Carter, Michael R. & Maluccio, John A., 2003. "Social Capital and Coping with Economic Shocks: An Analysis of Stunting of South African Children," World Development, Elsevier, vol. 31(7), pages 1147-1163, July.
    28. Lino Briguglio & Gordon Cordina & Nadia Farrugia & Stephanie Vella, 2009. "Economic Vulnerability and Resilience: Concepts and Measurements," Oxford Development Studies, Taylor & Francis Journals, vol. 37(3), pages 229-247.
    29. Henk Folmer & H. Landis Gabel & Shelby Gerking & Adam Rose (ed.), 2001. "Frontiers of Environmental Economics," Books, Edward Elgar Publishing, number 1929.
    30. Elbers, Chris & Lanjouw, Jean O. & Lanjouw, Peter, 2002. "Micro-level estimation of welfare," Policy Research Working Paper Series 2911, The World Bank.
    31. Stefan Greiving & Mark Fleischhauer & Johannes Luckenkotter, 2006. "A Methodology for an integrated risk assessment of spatially relevant hazards," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 49(1), pages 1-19.
    32. Mark Davies & Christophe Béné & Alexander Arnall & Thomas Tanner & Andrew Newsham & Cristina Coirolo, 2013. "Promoting Resilient Livelihoods through Adaptive Social Protection: Lessons from 124 programmes in South Asia," Development Policy Review, Overseas Development Institute, vol. 31(1), pages 27-58, January.
    33. Cuong Nguyen Viet & Thieu Vu, 2013. "The impact of piped water on household welfare: evidence from Vietnam," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 56(9), pages 1332-1358, November.
    34. W. Adger & P. Kelly, 1999. "Social Vulnerability to Climate Change and the Architecture of Entitlements," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 4(3), pages 253-266, September.
    35. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May.
    36. Yasuyuki Sawada, 2007. "The impact of natural and manmade disasters on household welfare," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 59-73, December.
    37. Glewwe, Paul, 1991. "Investigating the determinants of household welfare in Cote d'Ivoire," Journal of Development Economics, Elsevier, vol. 35(2), pages 307-337, April.
    38. Stefan Dercon & John Hoddinott & Tassew Woldehanna, 2005. "Shocks and Consumption in 15 Ethiopian Villages, 1999--2004," Journal of African Economies, Centre for the Study of African Economies, vol. 14(4), pages 559-585, December.
    39. Hartwig De Haen & Günter Hemrich, 2007. "The economics of natural disasters: implications and challenges for food security," Agricultural Economics, International Association of Agricultural Economists, vol. 37(s1), pages 31-45, December.
    40. Rose, Elaina, 2001. "Ex ante and ex post labor supply response to risk in a low-income area," Journal of Development Economics, Elsevier, vol. 64(2), pages 371-388, April.
    41. Thomas, Timothy & Christiaensen, Luc & Do, Quy Toan & Trung, Le Dang, 2010. "Natural disasters and household welfare : evidence from Vietnam," Policy Research Working Paper Series 5491, The World Bank.
    42. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    43. Neil Adger, W., 1999. "Social Vulnerability to Climate Change and Extremes in Coastal Vietnam," World Development, Elsevier, vol. 27(2), pages 249-269, February.
    44. Kinsey, Bill & Burger, Kees & Gunning, Jan Willem, 1998. "Coping with drought in Zimbabwe: Survey evidence on responses of rural households to risk," World Development, Elsevier, vol. 26(1), pages 89-110, January.
    45. Hentschel, Jesko, et al, 2000. "Combining Census and Survey Data to Trace the Spatial Dimensions of Poverty: A Case Study of Ecuador," The World Bank Economic Review, World Bank, vol. 14(1), pages 147-165, January.
    46. George Clark & Susanne Moser & Samuel Ratick & Kirstin Dow & William Meyer & Srinivas Emani & Weigen Jin & Jeanne Kasperson & Roger Kasperson & Harry Schwarz, 1998. "Assessing the Vulnerability of Coastal Communities to Extreme Storms: The Case of Revere, MA., USA," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 3(1), pages 59-82, January.
    47. Alice Fothergill & Lori Peek, 2004. "Poverty and Disasters in the United States: A Review of Recent Sociological Findings," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 32(1), pages 89-110, May.
    48. Raghav Gaiha & Kenneth Hill & Ganesh Thapa, 2010. "Natural Disasters in South Asia," ASARC Working Papers 2010-06, The Australian National University, Australia South Asia Research Centre.
    49. Nguyen Viet Cuong, 2013. "The Impact of Social Security on Household Welfare: Evidence from a Transition Country," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 25(5), pages 737-757, December.
    50. Katsushi Imai & Raghav Gaiha & Woojin Kang, 2011. "Poverty, inequality and ethnic minorities in Vietnam," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(3), pages 249-282.
    51. Anjini Kochar, 1999. "Smoothing Consumption by Smoothing Income: Hours-of-Work Responses to Idiosyncratic Agricultural Shocks in Rural India," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 50-61, February.
    52. Eduardo Rodriguez-Oreggia & Alejandro De La Fuente & Rodolfo De La Torre & Hector A. Moreno, 2013. "Natural Disasters, Human Development and Poverty at the Municipal Level in Mexico," Journal of Development Studies, Taylor & Francis Journals, vol. 49(3), pages 442-455, March.
    53. van den Berg, Marrit, 2010. "Household income strategies and natural disasters: Dynamic livelihoods in rural Nicaragua," Ecological Economics, Elsevier, vol. 69(3), pages 592-602, January.
    54. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 103-114, Summer.
    55. de Haen, Hartwig & Hemrich, Gunter, 2006. "The Economics of Natural Disasters - Implications and Challenges for Food Security," 2006 Annual Meeting, August 12-18, 2006, Queensland, Australia 25320, International Association of Agricultural Economists.
    56. Kousky, Carolyn, 2014. "Informing climate adaptation: A review of the economic costs of natural disasters," Energy Economics, Elsevier, vol. 46(C), pages 576-592.
    57. Minot, Nicholas & Baulch, Bob & Epperecht, Michael, 2006. "Poverty and inequality in Vietnam: spatial patterns and geographic determinants," Research reports 148, International Food Policy Research Institute (IFPRI).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sawada, Yasuyuki & Takasaki, Yoshito, 2017. "Natural Disaster, Poverty, and Development: An Introduction," World Development, Elsevier, vol. 94(C), pages 2-15.
    2. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 18793, Victoria University of Wellington, School of Economics and Finance.
    3. Veeshan Rayamajhee & Alok K. Bohara & Virgil Henry Storr, 2020. "Ex-Post Coping Responses and Post-Disaster Resilience: a Case from the 2015 Nepal Earthquake," Economics of Disasters and Climate Change, Springer, vol. 4(3), pages 575-599, October.
    4. Azreen Karim & Ilan Noy, 2016. "Poverty And Natural Disasters — A Qualitative Survey Of The Empirical Literature," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(01), pages 1-36, March.
    5. Abu Nasar Mohammad Abdullah & Kerstin Katharina Zander & Bronwyn Myers & Natasha Stacey & Stephen Thomas Garnett, 2016. "A short-term decrease in household income inequality in the Sundarbans, Bangladesh, following Cyclone Aila," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(2), pages 1103-1123, September.
    6. Nguyen, H.-R. & Ngo, Q.-T. & Nguyen, N.-D., 2018. "Effects of Natural Disaster on Rice Production at Farm Level: New Evidence from Vietnam," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(1).
    7. Sirikarn Lertamphainont & Robert Sparrow, 2016. "The Economic Impacts of Extreme Rainfall Events on Farming Households: Evidence from Thailand," PIER Discussion Papers 45, Puey Ungphakorn Institute for Economic Research.
    8. Patnaik, Unmesh & Das, Prasun Kumar, 2017. "Do Development Interventions Confer Adaptive Capacity? Insights from Rural India," World Development, Elsevier, vol. 97(C), pages 298-312.
    9. Rio Yonson & Ilan Noy, 2018. "Measurement of Economic Welfare Risk and Resilience of the Philippine Regions," CESifo Working Paper Series 6953, CESifo.
    10. Nillesen, Eleonora & Verwim, Philip, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi," WIDER Working Paper Series 044, World Institute for Development Economic Research (UNU-WIDER).
    11. Noy, Ilan & Karim, Azreen, 2013. "Poverty, inequality and natural disasters – A survey," Working Paper Series 2974, Victoria University of Wellington, School of Economics and Finance.
    12. van den Berg, Marrit, 2010. "Household income strategies and natural disasters: Dynamic livelihoods in rural Nicaragua," Ecological Economics, Elsevier, vol. 69(3), pages 592-602, January.
    13. Sweta Sen & Narayan Chandra Nayak & William Kumar Mohanty, 2023. "Impact of tropical cyclones on sustainable development through loops and cycles: evidence from select developing countries of Asia," Empirical Economics, Springer, vol. 65(5), pages 2467-2498, November.
    14. Anh Thu Quang Pham & Pundarik Mukhopadhaya & Ha Vu, 2020. "Targeting Administrative Regions for Multidimensional Poverty Alleviation: A Study on Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(1), pages 143-189, July.
    15. Lohmann, Steffen & Lechtenfeld, Tobias, 2015. "The Effect of Drought on Health Outcomes and Health Expenditures in Rural Vietnam," World Development, Elsevier, vol. 72(C), pages 432-448.
    16. Eleonora Nillesen & Philip Verwimp, 2010. "A Phoenix in Flames? Portfolio Choice and Violence in Civil War in Rural Burundi," Research Working Papers 25, MICROCON - A Micro Level Analysis of Violent Conflict.
    17. Mahdi Moudi & Shiyu Yan & Bahador Bahramimianrood & Xiaoping Li & Liming Yao, 2019. "Statistical model for earthquake economic loss estimation using GDP and DPI: a case study from Iran," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(2), pages 583-598, March.
    18. World Bank, 2012. "The Welfare Effects of Extreme Weather Events : Insights from Three APEC Case Studies," World Bank Publications - Reports 13039, The World Bank Group.
    19. Eleonora Nillesen & Philip Verwimp, 2010. "A Phoenix in Flames?: Portfolio Choice and Violence in Civil War in Rural Burundi," WIDER Working Paper Series wp-2010-044, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Q54; D12 2; disasters; Natural hazards; Vietnam JEL codes: O12; household welfare; resilience; poverty;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-01109452. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.