Advanced Search
MyIDEAS: Login

Is Nonfarm Diversification a Way Out of Poverty for Rural Households? Evidence from Vietnam in 1993-2006

Contents:

Author Info

  • Pham Thai Hung
  • Bui Anh Tuan
  • Dao Le Thanh
Registered author(s):

    Abstract

    school. Using the four high quality household living standards surveys available to date this paper reveals that Vietnam’s rural labour force has been markedly diversifying toward nonfarm activities in the doi moi (renovation) reform period. The employment share of the rural nonfarm sector has increased from 23 percent to 58 percent between the years 1993 and 2006. At the individual level, the results indicate that participation in the rural nonfarm sector is determined by a set of individual-, household-, and community-level characteristics. Gender, ethnicity, and education are reported as main individual-level drivers of nonfarm diversification. Lands as most important physical assets of rural households are found to be negative to nonfarm employment. It is also evident that both physical and institutional infrastructure exert important influences on individual participation in the nonfarm sector. At the household level, a combination of parametric and semi-parametric analysis is adopted to examine whether nonfarm diversification is a poverty exit path for rural households. This paper demonstrates a positive effect of nonfarm diversification on household welfare and this effect is robust to different estimation techniques, measures of nonfarm diversification, and the usage of equivalent scales. However, the poor is reported to benefit less than the non-poor from nonfarm activities. Though promoting a buoyant nonfarm sector is crucial for rural development and poverty reduction, it needs to be associated with enhancing access to nonfarm opportunities for the poor.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://portal.pep-net.org/documents/download/id/16678
    Download Restriction: no

    Bibliographic Info

    Paper provided by PEP-PMMA in its series Working Papers PMMA with number 2010-17.

    as in new window
    Length:
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:lvl:pmmacr:2010-17

    Contact details of provider:
    Postal: Pavillon J.A. De Seve, Québec, Québec, G1V 0A6
    Phone: 1-418-656-2131, ext. 2697
    Fax: 1-418-656-7798
    Email:
    Web page: http://www.pep-net.org
    More information through EDIRC

    Related research

    Keywords: Rural nonfarm sector; nonfarm diversification; household welfare; Vietnam;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:lvl:pmmacr:2010-17. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanne Perron).

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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