Sources of Regional Income Disparity in Rural Vietnam: Oaxaca-Blinder Decomposition
AbstractThis paper investigates determinants of regional income disparity in rural Vietnam, with special emphasis placed on the roles of human capital and land. We apply a decomposition method, suggested by Oaxaca and Blinder. We found that returns to assets rather than endowments, especially those of human capital, are one of the leading factors to account for income differences across regions. We also found that substantial improvements of returns to human capital in the Red River delta region are a driving force to catch up with Mekong River delta region. Unexpectedly, differences in land endowment do not strongly correlate with regional income disparity because better access to land in a region was partially offset by lower returns.
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Bibliographic InfoPaper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 95.
Date of creation: Mar 2007
Date of revision:
Publication status: Published in IDE Discussion Paper. No. 95. 2007.3
Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
Find related papers by JEL classification:
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-04-14 (Agricultural Economics)
- NEP-ALL-2007-04-14 (All new papers)
- NEP-DEV-2007-04-14 (Development)
- NEP-GEO-2007-04-14 (Economic Geography)
- NEP-HRM-2007-04-14 (Human Capital & Human Resource Management)
- NEP-SEA-2007-04-14 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Van der Walle, Dominique & Cratty, Dorothyjean, 2003.
"Is the emerging nonfarm market economy the route out of poverty in Vietnam?,"
Policy Research Working Paper Series
2950, The World Bank.
- Dominique van de Walle & Dorothyjean Cratty, 2004. "Is the emerging non-farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, 06.
- Van de Walle, Dominique, 1998. "Protecting the poor in Vietnam's emerging market economy," Policy Research Working Paper Series 1969, The World Bank.
- Nguyen, Binh Giang, 2008. "Improving the Foreign Direct Investment Capacity of the Mountainous Provinces in Viet Nam," IDE Discussion Papers 152, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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