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Poverty Dynamics in Rural Vietnam: Winners and Losers During Reform

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Author Info
Patricia Justino () (Poverty Research Unit at Sussex, Department of Economics, University of Sussex)
Julie Litchfield () (Poverty Research Unit at Sussex, Department of Economics, Universtity of Sussex)

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Abstract

This paper analyses poverty dynamics in Vietnam during the ‘Doi Moi’ renovation period and tries to identify the winners and losers from the economic and trade reform process implemented in Vietnam in the late 1980s. Our results are based on data available for a panel of 3494 rural households interviewed in 1992-93 and 1997-98. We find that movements in and out of poverty between the two periods vary substantially across population subgroups, suggesting that not everyone benefited equally from the process of reform. We model poverty dynamics using a multinomial logit model that explains movements in and out of poverty between the two periods of time in terms of household characteristics, characteristics directly related to the economic reforms and changes in the returns to those characteristics. The results suggest that changes in household poverty status in Vietnam are correlated with geographic location, access to key institutions and infrastructure, the education level of the head and spouse, as well as changes induced by the economic reform. These results are robust to shifts in the poverty line and changes in model specification. The paper forms part of a wider study funded by the UK Department for International Development that examines the impact of trade reform and trade shocks on household poverty dynamics.

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Publisher Info
Paper provided by Poverty Research Unit at Sussex, University of Sussex in its series PRUS Working Papers with number 10.

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Length: 48 pages
Date of creation: Apr 2003
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Handle: RePEc:pru:wpaper:10

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Related research
Keywords: Poverty dynamics trade liberalisation economic reform panel data Vietnam.

Find related papers by JEL classification:
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data
I32 - Health, Education, and Welfare - - Welfare and Poverty - - - Measurement and Analysis of Poverty
O53 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

References listed on IDEAS
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.:

  1. Minot, Nicholas & Goletti, Francesco, 2000. "Rice market liberalization and poverty in Viet Nam:," Research reports 114, International Food Policy Research Institute (IFPRI). [Downloadable!]
  2. David O’Connor, 1996. "Labour Market Aspects of State Enterprise Reform in Viet Nam," OECD Development Centre Working Papers 117, OECD Development Centre. [Downloadable!]
  3. repec:cep:sticas:040 is not listed on IDEAS
  4. Burgess, Simon & Gardiner, Karin & Jenkins, Stephen P & Propper, Carol, 2000. "Measuring Income Risk," CEPR Discussion Papers 2512, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  5. Gunewardena, Dileni & Van de Walle, Dominique, 2000. "Sources of ethnic inequality in Vietnam," Policy Research Working Paper Series 2297, The World Bank. [Downloadable!]
    Other versions:
  6. Baulch, Bob & Truong Thi Kim Chuyen & Haughton, Dominique & Haughton, Jonathan, 2002. "Ethnic minority development in Vietnam : a socioeconomic perspective," Policy Research Working Paper Series 2836, The World Bank. [Downloadable!]
  7. Dollar, David, 2002. "Reform, growth, and poverty in Vietnam," Policy Research Working Paper Series 2837, The World Bank. [Downloadable!]
  8. Loren Brandt & Dwayne Benjamin, 2002. "Agriculture and Income Distribution in Rural Vietnam under Economic Reforms: A Tale of Two Regions," William Davidson Institute Working Papers Series 519, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
    Other versions:
  9. Glewwe, Paul & Hall, Gillette, 1998. "Are some groups more vulnerable to macroeconomic shocks than others? Hypothesis tests based on panel data from Peru," Journal of Development Economics, Elsevier, vol. 56(1), pages 181-206, June. [Downloadable!] (restricted)
  10. Patricia Justino & Julie Litchfield, 2003. "Poverty Dynamics in Rural Vietnam: Winners and Losers During Reform," PRUS Working Papers 10, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  11. Yoko Niimi & Puja Vasudeva Dutta & Alan Winters, 2003. "Trade Liberalisation and Poverty Dynamics in Vietnam," PRUS Working Papers 17, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  12. Eric Edmonds & Nina Pavcnik, 2002. "Does Globalization Increase Child Labor? Evidence from Vietnam," NBER Working Papers 8760, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. L. Alan Winters, 2000. "Trade Liberalisation and Poverty," PRUS Working Papers 07, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  14. Stephen P. Jenkins, 2000. "Modelling household income dynamics," Journal of Population Economics, Springer, vol. 13(4), pages 529-567. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. Woolard, Ingrid & Klasen, Stephan, 2004. "Determinants of Income Mobility and Household Poverty Dynamics in South Africa," IZA Discussion Papers 1030, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Pham, Hung T, 2006. "Rural Nonfarm Employment Under Trade Reform Evidence From Vietnam, 1993-2002," MPRA Paper 6476, University Library of Munich, Germany. [Downloadable!]
  3. Patricia Justino & Philip Verwimp, 2006. "Poverty Dynamics, Violent Conflict and Convergence in Rwanda," HiCN Working Papers 16, Households in Conflict Network. [Downloadable!]
    Other versions:
  4. Patricia Justino, 2004. "Redistribution, Inequality and Political Conflict," HiCN Working Papers 05, Households in Conflict Network. [Downloadable!]
    Other versions:
  5. Patricia Justino & Julie Litchfield, 2003. "Poverty Dynamics in Rural Vietnam: Winners and Losers During Reform," PRUS Working Papers 10, Poverty Research Unit at Sussex, University of Sussex. [Downloadable!]
  6. Nguyen, Anh & Jones, Nicola, 2006. "Vietnam’s Trade Liberalisation: Potential Impacts on Child Well-being," MPRA Paper 1385, University Library of Munich, Germany. [Downloadable!]
  7. Seshan, Ganesh, 2005. "The impact of trade liberalization on household welfare in vietnam," Policy Research Working Paper Series 3541, The World Bank. [Downloadable!]
  8. Jones, Nicola & Nguyen, Ngoc Anh & Nguyen, Thu Hang, 2007. "Trade liberalisation and intra-household poverty in Vietnam: a q2 social impact analysis," MPRA Paper 4206, University Library of Munich, Germany. [Downloadable!]
  9. Coral del Río & Carlos Gradín & Olga Cantó, 2006. "What helps households with children in leaving poverty? Evidence from Spain," Working Papers 24, ECINEQ, Society for the Study of Economic Inequality. [Downloadable!]
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