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Shocks and rural development policies: Any implications for migrants to return?

Author

Listed:
  • Manh Hung Do
  • Trung Thanh Nguyen
  • Thanh-Tung Nguyen
  • Ulrike Grote

Abstract

This paper examines the factors affecting the decision of migrants to return home in rural areas and their length of stay in cities with a focus on shocks and rural development policies. We use the unique Thailand Vietnam Socio Economic Panel (TVSEP) data. Our results reveal that the decision to return is positively associated with demographic shocks and negatively associated with social shocks during the time migrants stay in the cities. Meanwhile, economic shocks positively influence migrants’ staying period in the cities. Besides, migrants from poor communes with poverty reduction projects are more unlikely to return. This implies that current rural development policies in Vietnam with a goal of poverty reduction might not be attractive enough for migrants to return.

Suggested Citation

  • Manh Hung Do & Trung Thanh Nguyen & Thanh-Tung Nguyen & Ulrike Grote, 2020. "Shocks and rural development policies: Any implications for migrants to return?," TVSEP Working Papers wp-018, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    • Handle: RePEc:tvs:wpaper:wp-018
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    References listed on IDEAS

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    1. James J. Heckman, 1976. "The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models," NBER Chapters, in: Annals of Economic and Social Measurement, Volume 5, number 4, pages 475-492, National Bureau of Economic Research, Inc.
    2. Monika Sander, 2007. "Return Migration and the "Healthy Immigrant Effect"," SOEPpapers on Multidisciplinary Panel Data Research 60, DIW Berlin, The German Socio-Economic Panel (SOEP).
    3. Larry A. Sjaastad, 1970. "The Costs and Returns of Human Migration," Palgrave Macmillan Books, in: Harry W. Richardson (ed.), Regional Economics, chapter 9, pages 115-133, Palgrave Macmillan.
    4. Gloede, Oliver & Menkhoff, Lukas & Waibel, Hermann, 2015. "Shocks, Individual Risk Attitude, and Vulnerability to Poverty among Rural Households in Thailand and Vietnam," World Development, Elsevier, vol. 71(C), pages 54-78.
    5. Nelson, Joan M, 1976. "Sojourners versus New Urbanites: Causes and Consequences of Temporary versus Permanent Cityward Migration in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 24(4), pages 721-757, July.
    6. Hausmann, Ricardo & Nedelkoska, Ljubica, 2018. "Welcome home in a crisis: Effects of return migration on the non-migrants' wages and employment," European Economic Review, Elsevier, vol. 101(C), pages 101-132.
    7. Nguyen, Duc Loc & Grote, Ulrike & Nguyen, Trung Thanh, 2019. "Migration, crop production and non-farm labor diversification in rural Vietnam," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 175-187.
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    Cited by:

    1. Antonio Baselice & Mariarosaria Lombardi & Maurizio Prosperi & Antonio Stasi & Antonio Lopolito, 2021. "Key Drivers of the Engagement of Farmers in Social Innovation for Marginalised Rural Areas," Sustainability, MDPI, vol. 13(15), pages 1-18, July.

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    More about this item

    Keywords

    Two-step Heckman selection; Shocks; Rural-urban migration; Migrants’ behavior; Rural development;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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