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Impacts of Vietnam’s new rural development policy on rural households’ income: empirical evidence from the Heckman selection model

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  • Manh Hung Do
  • Sang Chul Park

Abstract

The New Rural Development program (NRD) is among the top developmental policies of Vietnam’s government to cope with imperative issues in the rural regions, especially a widening income gap between the urban and rural regions. This paper is the first trial for studying on key social, economic, and natural conditions affecting communes’ adoption of the NRD and factors impacting on rural households’ income based on the NRD’s implementation criteria using a Heckman Selection model to substantiate the NRD’s performance of increasing rural households’ income. The estimation model signifies that the poverty rate has a negative impact on the NRD’s adoption in contrast to geographical aspects, average ages, and cooperative variables. At the outcome estimation, rural infrastructure development and technology transfer exert a strong influence on rural households’ earnings. This implies that promoting investments in infrastructure and technology transfer are crucial for rural development, especially with the income increase purposes.

Suggested Citation

  • Manh Hung Do & Sang Chul Park, 2019. "Impacts of Vietnam’s new rural development policy on rural households’ income: empirical evidence from the Heckman selection model," International Review of Public Administration, Taylor & Francis Journals, vol. 24(4), pages 229-245, October.
    • Handle: RePEc:taf:rrpaxx:v:24:y:2019:i:4:p:229-245
    DOI: 10.1080/12294659.2019.1662165
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    Cited by:

    1. Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Do, Manh Hung & Nguyen, Duy Linh & Grote, Ulrike, 2022. "Shocks, agricultural productivity, and natural resource extraction in rural Southeast Asia," World Development, Elsevier, vol. 159(C).
    2. Manh Hung Do, 2023. "The Role of Savings and Income Diversification in Households’ Resilience Strategies: Evidence from Rural Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 353-388, August.
    3. Manh Hung Do, 2023. "Saving up and diversifying income for a rainy day: Implications for households' resilience strategies and poverty," TVSEP Working Papers wp-033, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    4. Tim Hartwig & Trung Thanh Nguyen, 2022. "Local infrastructure, resilience capacity and poverty in rural Southeast Asia," TVSEP Working Papers wp-029, Leibniz Universitaet Hannover, Institute of Development and Agricultural Economics, Project TVSEP.
    5. Yuxuan Xu & Jie Lyu & Ying Xue & Hongbin Liu, 2022. "Intentions of Farmers to Renew Productive Agricultural Service Contracts Using the Theory of Planned Behavior: An Empirical Study in Northeastern China," Agriculture, MDPI, vol. 12(9), pages 1-21, September.

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