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Does Urbanization Reduce Rural Poverty? Evidence from Vietnam

Author

Listed:
  • Adel Ben Youssef

    (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur)

  • Mohamed El Hedi Arouri

    (CRGM - Centre de Recherche Clermontois en Gestion et Management - UdA - Université d'Auvergne - Clermont-Ferrand I)

  • Cuong Nguyen-Viet

    (Chercheur indépendant = Independent researcher)

Abstract

This paper contributes to the urbanization-poverty nexus by assessing the effect of urbanization on income, expenditure, and poverty in rural households in Vietnam, using data from household surveys. We find that the urbanization process stimulates the transition from farm to non-farm activities in rural areas. More specifically, urbanization tends to reduce farm income and increase wages and non-farm income in rural households. This suggests that total income and consumption expenditure of rural households are more likely to increase with urbanization. Finally, we find also that urbanization helps to decrease the expenditure poverty rate of rural households, albeit by a small magnitude.

Suggested Citation

  • Adel Ben Youssef & Mohamed El Hedi Arouri & Cuong Nguyen-Viet, 2016. "Does Urbanization Reduce Rural Poverty? Evidence from Vietnam," Post-Print halshs-01384725, HAL.
    • Handle: RePEc:hal:journl:halshs-01384725
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01384725v1
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    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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