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Rural Nonfarm Employment Under Trade Reform Evidence From Vietnam, 1993-2002

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Author Info

  • Pham, T.H.

    ()
    (Poverty Research Unit at Sussex, Department of Economics, University of Sussex)

Abstract

Vietnam?s rural economy has substantially diversified over the past two decades. The rural nonfarm sector has grown rapidly and became an important source of employment and income for rural households. This growing nonfarm employment was associated with radical changes in the trade policy reform that has put the country to the top two or three performers in the developing world. This paper examines the potential effect of the trade policy reform on nonfarm employment in rural Vietnam during the period 1993-2002. It proposes two trade openness indices that allow changes in the trade policy at the macro level to be transmitted to rural households. The results reveal that the trade policy reform does have a material impact on rural nonfarm employment. While a more liberalized agricultural sector encourages nonfarm diversification, a lower protection level in the nonfarm sector discourages individual participation in nonfarm income-generating activities.

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File URL: http://www.sussex.ac.uk/Units/PRU/wps/wp35.pdf
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Bibliographic Info

Paper provided by Poverty Research Unit at Sussex, University of Sussex in its series PRUS Working Papers with number 35.

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Length: 39 pages
Date of creation: Jan 2007
Date of revision:
Handle: RePEc:pru:wpaper:35

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Related research

Keywords: Trade liberalization; trade policy reform; rural nonfarm employment; Vietnam;

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Cited by:
  1. Atamanov, Aziz & Van den Berg, Marrit, 2011. "Microeconomic analysis of rural nonfarm activities in the Kyrgyz Republic: What determines participation and returns?," MERIT Working Papers 011, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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