IDEAS home Printed from https://ideas.repec.org/a/bla/rdevec/v7y2003i4p636-653.html
   My bibliography  Save this article

Are Returns to Investment Lower for the Poor? Human and Physical Capital Interactions in Rural Vietnam

Author

Listed:
  • Dominique van de Walle

Abstract

If the gains from investment depend on knowledge, but households cannot hire skills, then poorly educated households will achieve lower returns than educated ones. If the income-poor are less well educated, then they will also have lower returns to investment. The paper tests this argument for the case of irrigation in Vietnam, a setting where existing irrigation can be treated as exogenous at the household level with appropriate controls for the determinants of facility placement. Strong complementarities between household education and irrigation expansion suggest that, unless disparities in education are redressed, reforms will generate an inequitable growth process in Vietnam. Copyright Blackwell Publishing Ltd 2003.

Suggested Citation

  • 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.
  • Handle: RePEc:bla:rdevec:v:7:y:2003:i:4:p:636-653
    as

    Download full text from publisher

    File URL: http://www.blackwell-synergy.com/servlet/useragent?func=synergy&synergyAction=showTOC&journalCode=rode&volume=7&issue=4&year=2003&part=null
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. 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, June.
    2. 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 643-644, April.
    3. Minot, Nicholas, 1998. "Generating disaggregated poverty maps," MTID discussion papers 25, International Food Policy Research Institute (IFPRI).
    4. Jalan, Jyotsna & Ravallion, Martin, 2001. "Behavioral responses to risk in rural China," Journal of Development Economics, Elsevier, vol. 66(1), pages 23-49, October.
    5. repec:dau:papers:123456789/10091 is not listed on IDEAS
    6. 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.
    7. 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.
    8. 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.
    9. Strauss, J. & Thomas, D., 1995. "Empirical Modeling of Household and Family Decisions," Papers 95-12, RAND - Reprint Series.
    10. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Torero, Maximo, 2014. "The Impact of Rural Electrification," MPRA Paper 61425, University Library of Munich, Germany.
    2. Lucia Mangiavacchi & Paolo Verme, 2013. "Minimum income in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(4), pages 683-712, October.
    3. 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.
    4. 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.
    5. 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.
    6. Jean-Louis ARCAND & Béatrice D'HOMBRES & Paul GYSELINCK, 2004. "Instrument Choice and the Returns to Education: New Evidence from Vietnam," Working Papers 200422, CERDI.
    7. Escobal, Javier, 2005. "The Role of Public Infraestructure in Market Development in Rural Peru," MPRA Paper 727, University Library of Munich, Germany.
    8. 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.
    9. 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.
    10. Easterly, William, 2001. "The Effect of IMF and World Bank Programmes on Poverty," WIDER Working Paper Series 102, World Institute for Development Economic Research (UNU-WIDER).
    11. Liu, Amy Y.C., 2008. "Changes in urban inequality in Vietnam: 1992-1998," Economic Systems, Elsevier, vol. 32(4), pages 410-425, December.
    12. Leandro Siqueira Carvalho, 2010. "Poverty and Time Preference," Working Papers 759, RAND Corporation.
    13. 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).
    14. Burney, Jennifer A. & Naylor, Rosamond L., 2012. "Smallholder Irrigation as a Poverty Alleviation Tool in Sub-Saharan Africa," World Development, Elsevier, vol. 40(1), pages 110-123.
    15. 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.
    16. Fox, Louise & Pimhidzai, Obert, 2011. "Is informality welfare-enhancing structural transformation ? evidence from Uganda," Policy Research Working Paper Series 5866, The World Bank.
    17. 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.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:rdevec:v:7:y:2003:i:4:p:636-653. 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: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1363-6669 .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.