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Does Urbanization Help Poverty Reduction in Rural Areas? Evidence from Vietnam

Author

Listed:
  • Mohamed El Hedi Arouri

    () (LEO - Laboratoire d'économie d'Orleans - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

  • Adel Ben Youssef

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

  • Cuong Nguyen-Viet

    () (Chercheur indépendant)

Abstract

Urbanization and poverty have a two-way relationship. Using fixed-effects regression andpanel data from household surveys, we estimate the effect of urbanization on welfare andpoverty of rural households in Vietnam. We find that urbanization tends to increaselandlessness of rural households and to reduce their farm income. However, urbanizationhelps rural households increase their wages and non-farm incomes. As a result, totalincome and consumption expenditure of rural households tend to be increased withurbanization. Then we find that urbanization also helps rural households decrease theexpenditure poverty rate, albeit at a small magnitude.

Suggested Citation

  • Mohamed El Hedi Arouri & Adel Ben Youssef & Cuong Nguyen-Viet, 2014. "Does Urbanization Help Poverty Reduction in Rural Areas? Evidence from Vietnam," Working Papers halshs-01068266, HAL.
  • Handle: RePEc:hal:wpaper:halshs-01068266
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-01068266
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    1. repec:ipg:wpaper:2014-454 is not listed on IDEAS
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    More about this item

    Keywords

    urbanization; household welfare; rural poverty; impact evaluation; household surveys; Vietnam; Asia;

    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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