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Vulnerability and poverty dynamics in Vietnam


  • Raghav Gaiha
  • Katsushi Imai
  • Woojin Kang


Drawing upon the Vietnam Household Living Standards Survey (VHLSS) data that cover the whole of Vietnam in 2002 and 2004, ex ante measures of vulnerability are constructed. These are then compared with static indicators of poverty (i.e. the headcount ratio in a particular year). Detailed analyses of the panel data show that (i) in general, vulnerability in 2002 translates into poverty in 2004; (ii) vulnerability of the poor tends to perpetuate their poverty and (iii) sections of the nonpoor but vulnerable slip into poverty. Durable reduction in poverty is conditional on (i) accurate identification of the vulnerable, (ii) their sources of vulnerability and (iii) design of social safety nets that would enable the vulnerable to reduce risks and cope better with rapid integration of markets with the larger global economy.
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  • Raghav Gaiha & Katsushi Imai & Woojin Kang, 2007. "Vulnerability and poverty dynamics in Vietnam," The School of Economics Discussion Paper Series 0708, Economics, The University of Manchester.
  • Handle: RePEc:man:sespap:0708

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    1. Townsend, Robert M, 1994. "Risk and Insurance in Village India," Econometrica, Econometric Society, vol. 62(3), pages 539-591, May.
    2. Ethan Ligon & Laura Schechter, 2003. "Measuring Vulnerability," Economic Journal, Royal Economic Society, vol. 113(486), pages 95-102, March.
    3. Raghav Gaiha & Katsushi Imai, 2004. "Vulnerability, shocks and persistence of poverty: estimates for semi-arid rural South India," Oxford Development Studies, Taylor & Francis Journals, vol. 32(2), pages 261-281.
    4. Gaiha, Raghav & Deolalikar, Anil B, 1993. "Persistent, Expected and Innate Poverty: Estimates for Semi-arid Rural South India, 1975-1984," Cambridge Journal of Economics, Oxford University Press, vol. 17(4), pages 409-421, December.
    5. Bob Baulch & John Hoddinott, 2000. "Economic mobility and poverty dynamics in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 36(6), pages 1-24.
    6. Martin Ravallion & Dominique van de Walle, 2006. "Land Reallocation in an Agrarian Transition," Economic Journal, Royal Economic Society, vol. 116(514), pages 924-942, October.
    7. Gamanou, Gisele & Morduch, Jonathan, 2002. "Measuring Vulnerability to Poverty," WIDER Working Paper Series 058, World Institute for Development Economic Research (UNU-WIDER).
    8. Raghav Gaiha & Katsushi Imai, 2002. "Rural Public Works and Poverty Alleviation--the case of the employment guarantee scheme in Maharashtra," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(2), pages 131-151.
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    Cited by:

    1. Md. Shafiul Azam & Katsushi Imai, 2009. "Vulnerability and Poverty in Bangladesh," The School of Economics Discussion Paper Series 0905, Economics, The University of Manchester.
    2. repec:spr:soinre:v:134:y:2017:i:1:d:10.1007_s11205-016-1419-x is not listed on IDEAS
    3. Raghbendra Jha & Hari K. Nagarajan & Woojin Kang & Kailash C. Pradhan, 2014. "Panchayats and Household Vulnerability in Rural India," ASARC Working Papers 2014-08, The Australian National University, Australia South Asia Research Centre.
    4. Raghbendra Jha & Woojin Kang & Hari K. Nagarajan & Kailash C. Pradhan, 2012. "Vulnerability as Expected Poverty in Rural India," ASARC Working Papers 2012-04, The Australian National University, Australia South Asia Research Centre.
    5. Celidoni, Martina, 2011. "Vulnerability to poverty: An empirical comparison of alternative measures," MPRA Paper 33002, University Library of Munich, Germany.
    6. Md. Shafiul Azam & Katsushi S. Imai, 2012. "Measuring Households' Vulnerability to Idiosyncratic and Covariate Shocks – the case of Bangladesh," Discussion Paper Series DP2012-02, Research Institute for Economics & Business Administration, Kobe University.
    7. Gang, Ira N. & Gatskova, Kseniia & Landon-Lane, John & Yun, Myeong-Su, 2016. "Vulnerability to Poverty: Tajikistan During and After the Global Financial Crisis," IZA Discussion Papers 10049, Institute for the Study of Labor (IZA).
    8. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex.
    9. Eozenou, Patrick & Madani, Dorsati & Swinkels, Rob, 2013. "Poverty, malnutrition and vulnerability in Mali," Policy Research Working Paper Series 6561, The World Bank.
    10. Agbaje, M.A. & Okunmadewa, F.Y. & Oni, O.A. & Omonona, B.T., 0. "Spatial Dimension of Vulnerability to Poverty in Rural Nigeria," Quarterly Journal of International Agriculture, Humboldt-Universität zu Berlin, vol. 53.
    11. Tran, Van Q., 2015. "Household's coping strategies and recoveries from shocks in Vietnam," The Quarterly Review of Economics and Finance, Elsevier, vol. 56(C), pages 15-29.
    12. Nguyen Viet, Cuong, 2012. "Poverty Dynamics: The Structurally and Stochastically Poor in Vietnam," MPRA Paper 45738, University Library of Munich, Germany.
    13. repec:eee:wdevel:v:102:y:2018:i:c:p:262-274 is not listed on IDEAS

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