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Pro-Poor Growth, Poverty and Inequality in Rural Vietnam

  • Woojin Kang
  • Katsushi Imai

This study explores the effects of Vietnam's transition on the welfare of different ethnic groups in rural Vietnam. It draws on three rounds of household surveys, VHLSS 2002, 2004 and 2006. It is first observed that the pace of poverty reduction for minorities surpassed the majority over the period 2002 to 2006, although poor people were still concentrated in the minority groups. Secondly, the disparity of living standards has been widening. In particular, inequality in both the majority and minority increased over the periods. Thirdly, the study shows that the pure effect of economic growth on poverty is estimated to have been greater if inequality remained constant. It is noted that the impacts of economic growth vary depending on which ethnic group a household belongs to. Finally, it is also confirmed from regression decompositions of within inequality that the main driver of inequality is not identical among different ethnic groups. Given the diversity across ethnic groups, we can conclude that the governmental policy aiming at equal access to infrastructure and more equal distribution of assets, such as land, for ethnic minority groups would lead to more equal distribution of consumption and poverty reduction of those groups. Also, consideration of local needs of each ethnic minority group would be necessary in designing and implementing public policies given the heterogeneous socio-economic circumstances surrounding each ethnic minority group.

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File URL: http://www.socialsciences.manchester.ac.uk/medialibrary/economics/discussionpapers/EDP-1011.pdf
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Paper provided by Economics, The University of Manchester in its series The School of Economics Discussion Paper Series with number 1011.

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Date of creation: 2010
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Handle: RePEc:man:sespap:1011
Contact details of provider: Postal: Manchester M13 9PL
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Web page: http://www.socialsciences.manchester.ac.uk/subjects/economics/

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  1. Tilman Brück & Alexander M. Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants of Poverty during Transition: Household Survey Evidence from Ukraine," ESCIRRU Working Papers 2, DIW Berlin, German Institute for Economic Research.
  2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  3. Marcel Fafchamps & Susan Lund, 2000. "Risk-Sharing Networks in Rural Philippines," Economics Series Working Papers 10, University of Oxford, Department of Economics.
  4. Katsushi Imai & Raghav Gaiha, 2007. "Poverty, inequality and ethnic minorities in Vietnam," The School of Economics Discussion Paper Series 0719, Economics, The University of Manchester.
  5. Shorrocks, A F, 1982. "Inequality Decomposition by Factor Components," Econometrica, Econometric Society, vol. 50(1), pages 193-211, January.
  6. Nguyen Viet Cuong, 2009. "Can Vietnam achieve millennium development goal on poverty reduction in high inflation and economic stagnation?," Working Papers 01, Development and Policies Research Center (DEPOCEN), Vietnam.
  7. Datt, Gaurav, 1998. "Computational tools for poverty measurement and analysis," FCND discussion papers 50, International Food Policy Research Institute (IFPRI).
  8. Gunewardena, Dileni & Van de Walle, Dominique, 2000. "Sources of ethnic inequality in Vietnam," Policy Research Working Paper Series 2297, The World Bank.
  9. Amy Liu, 2004. "Sectoral gender wage gap in Vietnam," Oxford Development Studies, Taylor & Francis Journals, vol. 32(2), pages 225-239.
  10. Nanak Kakwani & Shahid Khandker & Hyun H. Son, 2004. "Pro-poor growth: concepts and measurement with country case studies," Working Papers 1, International Policy Centre for Inclusive Growth.
  11. Bob Baulch & Truong Thi Kim Chuyen & Dominique Haughton & Jonathan Haughton, 2007. "Ethnic minority development in Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 43(7), pages 1151-1176.
  12. 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.
  13. Ravallion, Martin & Shaohua Chen, 2001. "Measuring pro-poor growth," Policy Research Working Paper Series 2666, The World Bank.
  14. Deaton, Angus, 1992. "Understanding Consumption," OUP Catalogue, Oxford University Press, number 9780198288244, March.
  15. Amy Y.C. Liu, 2001. "Gender wage gap in transistion in Vietnam," International and Development Economics Working Papers idec01-3, International and Development Economics.
  16. Nguyen Viet CUONG, 2008. "Is A Governmental Micro-Credit Program For The Poor Really Pro-Poor? Evidence From Vietnam," The Developing Economies, Institute of Developing Economies, vol. 46(2), pages 151-187.
  17. Teerawichitchainan, Bussarawan & Phillips, James F., 2008. "Ethnic differentials in parental health seeking for childhood illness in Vietnam," Social Science & Medicine, Elsevier, vol. 66(5), pages 1118-1130, March.
  18. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  19. repec:cup:cbooks:9780521296762 is not listed on IDEAS
  20. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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