Are returns to investment lower for the poor? Human and physical capital interactions in rural Viet Nam
AbstractIf the marginal gains from investment in physical capital depend positively on knowledge, but a household cannot hire skilled labor to compensate for low skills, then even if it has access to credit, the household will achieve lower returns than an educated household. If, as is common, the income-poor are less educated because of failures in the credit market, and because they live in areas where there is less access to schooling, then the poor will also have lower returns on investments. The author tests this argument for the case of irrigation infrastructure in Vietnam. She asks how a household's education level, and demographic characteristics influence the gains to household income from irrigating previously unirrigated land. The next marginal benefit of irrigation increases strongly with the education of a household. The results suggest that unless disparities in education are addressed, market-oriented reforms will generate inequitable agricultural growth in Vietnam.
Download InfoIf 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.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2425.
Date of creation: 31 Aug 2000
Date of revision:
Agricultural Knowledge&Information Systems; Decentralization; Public Health Promotion; Environmental Economics&Policies; Water Conservation; Environmental Economics&Policies; Agricultural Knowledge&Information Systems; Health Economics&Finance; Banks&Banking Reform; Economic Theory&Research;
Other versions of this item:
- Dominique van de Walle, 2003. "Are Returns to Investment Lower for the Poor? Human and Physical Capital Interactions in Rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 7(4), pages 636-653, November.
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.:
- Jalan, Jyotsna & Ravallion, Martin, 2001.
"Behavioral responses to risk in rural China,"
Journal of Development Economics,
Elsevier, vol. 66(1), pages 23-49, October.
- 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 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.
- Aghion, Philippe & Caroli, Eve & Garcia-Penalosa, Cecilia, 1999.
"Inequality and economic growth: the perspective of the new growth theories,"
CEPREMAP Working Papers (Couverture Orange)
- Cecilia Garcia-Penalosa & Eve Caroli & Philippe Aghion, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1615-1660, December.
- Garcia-Penalosa, Cecilia & Aghion, Philippe & Caroli, Eve, 1999. "Inequality and Economic Growth: The Perspective of the New Growth Theories," Economics Papers from University Paris Dauphine 123456789/10091, Paris Dauphine University.
- Lockheed, Marlaine E & Jamison, Dean T & Lau, Lawrence J, 1987. "Farmer Education and Farm Efficiency: Reply," Economic Development and Cultural Change, University of Chicago Press, vol. 35(3), pages 643-44, April.
- Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
- Ravallion, Martin & Datt, Gaurav, 1999. "When is growth pro-poor? Evidence from the diverse experiences of India's states," Policy Research Working Paper Series 2263, The World Bank.
- Jimenez, Emmanuel, 1995. "Human and physical infrastructure: Public investment and pricing policies in developing countries," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 43, pages 2773-2843 Elsevier.
- Minot, Nicholas, 1998. "Generating disaggregated poverty maps," MTID discussion papers 25, International Food Policy Research Institute (IFPRI).
- Strauss, John & Thomas, Duncan, 1995. "Human resources: Empirical modeling of household and family decisions," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 34, pages 1883-2023 Elsevier.
- Enrique Lopez-Bazo & Rosina Moreno, 2007.
"Does Human Capital Stimulate Investment In Physical Capital? Evidence From A Cost System Framework,"
IREA Working Papers
200717, University of Barcelona, Research Institute of Applied Economics, revised Dec 2007.
- López-Bazo, Enrique & Moreno, Rosina, 2008. "Does human capital stimulate investment in physical capital?: Evidence from a cost system framework," Economic Modelling, Elsevier, vol. 25(6), pages 1295-1305, November.
- Siegel, Paul B., 2005. "Using an asset-based approach to identify drivers of sustainable rural growth and poverty reduction in Central America : a conceptual framework," Policy Research Working Paper Series 3475, The World Bank.
- William Easterly, 2010.
"The Effect of IMF and World Bank Programmes on Poverty,"
- Easterly, William, 2001. "The Effect of IMF and World Bank Programmes on Poverty," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Mogues, Tewodaj & Ayele, Gezahegn & Paulos, Zelekawork, 2007.
"The bang for the birr: Public expenditures and rural welfare in Ethiopia,"
IFPRI discussion papers
702, International Food Policy Research Institute (IFPRI).
- Tewodaj Mogues, 2011. "The Bang for the Birr: Public Expenditures and Rural Welfare in Ethiopia," Journal of Development Studies, Taylor & Francis Journals, vol. 47(5), pages 735-752.
- Mogues, Tewodaj & Ayele, Gezahegn & Paulos, Zelekawork, 2008. "The bang for the birr: Public expenditures and rural welfare in Ethiopia," Research reports 160, International Food Policy Research Institute (IFPRI).
- Fox, Louise & Pimhidzai, Obert, 2011. "Is informality welfare-enhancing structural transformation ? evidence from Uganda," Policy Research Working Paper Series 5866, The World Bank.
- Jean-Louis ARCAND & Béatrice D'HOMBRES & Paul GYSELINCK, 2004.
"Instrument Choice and the Returns to Education: New Evidence from Vietnam,"
- Jean-Louis Arcand & Béatrice d'Hombres & Paul Gyselinck, 2005. "Instrument Choice and the Returns to Education: New Evidence from Vietnam," Labor and Demography 0510011, EconWPA.
- Fan, Shenggen & Jitsuchon, Somchai & Methakunnavut, Nuntaporn, 2004. "The importance of public investment for reducing rural poverty in middle-income countries," DSGD discussion papers 7, International Food Policy Research Institute (IFPRI).
- 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.
- Songco, Jocelyn A., 2002. "Do rural infrastructure investments benefit the poor? Evaluating linkages : a global view, a focus on Vietnam," Policy Research Working Paper Series 2796, The World Bank.
- Lucia Mangiavacchi & Paolo Verme, 2009. "Evaluating Pro-poor Transfers When Targeting is Weak: The Albanian Ndihma Ekonomike Program Revisited," Working Papers - Economics wp2009_08.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
- Dufhues, Thomas & Buchenrieder, Gertrud, 2005. "Outreach of credit institutes and households' access constraints to formal credit in Northern Vietnam," Research in Development Economics and Policy (Discussion Paper Series) 8535, Universitaet Hohenheim, Department of Agricultural Economics and Social Sciences in the Tropics and Subtropics.
- Leandro Carvalho, 2010. "Poverty and Time Preference," Working Papers 759, RAND Corporation Publications Department.
- Escobal, Javier, 2005. "The Role of Public Infraestructure in Market Development in Rural Peru," MPRA Paper 727, University Library of Munich, Germany.
- Liu, Amy Y.C., 2008. "Changes in urban inequality in Vietnam: 1992-1998," Economic Systems, Elsevier, vol. 32(4), pages 410-425, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.