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Measuring the Impact of Cash Crops on Household Expenditure and Poverty in Rural Viet Nam

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  • Nguyen Viet, Cuong

Abstract

This paper measures the impacts of cash crops on household consumption expenditure and poverty in rural Viet Nam using data from the Viet Nam household living standards surveys (VHLSSs) of 2002 and 2004. It has been found that revenues from cash crops have positive and statistically significant impacts on per capita expenditure. More specifically, an increase of 1 Viet Nam dong (VND) in rice revenues leads to an increase of 0.019 VND in per capita expenditure, and the corresponding figures for revenues from annual crops, perennial crops and fruits are 0.038, 0.040 and 0.036, respectively. As a result, crop sales have positive and statistically significant impacts on poverty reduction for crop-growing households and the rural population. The poverty-reducing impacts are found to be positive for all three Foster-Greer-Thorbecke poverty measures.

Suggested Citation

  • Nguyen Viet, Cuong, 2008. "Measuring the Impact of Cash Crops on Household Expenditure and Poverty in Rural Viet Nam," MPRA Paper 24921, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:24921
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    References listed on IDEAS

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    1. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1, January.
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    6. Ruben, Ruerd & Van den berg, Marrit, 2001. "Nonfarm Employment and Poverty Alleviation of Rural Farm Households in Honduras," World Development, Elsevier, vol. 29(3), pages 549-560, March.
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    8. Timmer, C. Peter, 2002. "Agriculture and economic development," Handbook of Agricultural Economics,in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 2, chapter 29, pages 1487-1546 Elsevier.
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    10. L. Alan Winters, 2000. "Trade Liberalisation and Poverty," PRUS Working Papers 07, Poverty Research Unit at Sussex, University of Sussex.
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    More about this item

    Keywords

    Cash crop; agriculture; farm households; household expenditure; poverty; Viet Nam;

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty

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