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Pro-Poor Growth, Poverty and Inequality in Rural Vietnam

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Author Info

  • Woojin Kang

    (Economics, School of Social Sciences, University of Manchester, UK)

  • Katsushi S. Imai

    (Economics, School of Social Sciences, University of Manchester (UK) and RIEB, Kobe University (Japan))

Abstract

This study explores the effects of Vietnam's transition on the welfare of different ethnic groups in rural Vietnam. It draws on three rounds of household surveys, VHLSS 2002, 2004 and 2006. It is first observed that the pace of poverty reduction for minorities surpassed the majority over the period 2002 to 2006, although poor people were still concentrated in the minority groups. Secondly, the disparity of living standards has been widening. In particular, inequality in both the majority and minority increased over the periods. Thirdly, the study shows that the pure effect of economic growth on poverty is estimated to have been greater if inequality remained constant. It is noted that the impacts of economic growth vary depending on which ethnic group a household belongs to. Finally, it is also confirmed from regression decompositions of within inequality that the main driver of inequality is not identical among different ethnic groups. Given the diversity across ethnic groups, we can conclude that the governmental policy aiming at equal access to infrastructure and more equal distribution of assets, such as land, for ethnic minority groups would lead to more equal distribution of consumption and poverty reduction of those groups. Also, consideration of local needs of each ethnic minority group would be necessary in designing and implementing public policies given the heterogeneous socio-economic circumstances surrounding each ethnic minority group.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2010-18.pdf
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number DP2010-18.

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Length: 35 pages
Date of creation: May 2010
Date of revision:
Handle: RePEc:kob:dpaper:dp2010-18

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Keywords: Vietnam; Ethnic minority; Growth; Poverty; Inequality; Decomposition;

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References

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  1. van de Walle, Dominique & Gunewardena, Dileni, 2001. "Sources of ethnic inequality in Viet Nam," Journal of Development Economics, Elsevier, vol. 65(1), pages 177-207, June.
  2. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
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  8. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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  17. Teerawichitchainan, Bussarawan & Phillips, James F., 2008. "Ethnic differentials in parental health seeking for childhood illness in Vietnam," Social Science & Medicine, Elsevier, vol. 66(5), pages 1118-1130, March.
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  20. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
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