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Vietnam's evolving poverty map : patterns and implications for policy

Author

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  • Lanjouw, Peter
  • Marra, Marleen
  • Nguyen, Cuong

Abstract

This paper uses small area estimation techniques to update Vietnam's province and district-level poverty map to 2009. It finds that poverty rates continue to be highest in the northern and central mountainous regions, where ethnic minorities make up a large fraction of the population. Poverty has fallen in most provinces and districts over this decade, but the pace of poverty reduction has been least pronounced in those localities with high initial poverty or inequality levels. As a result, poverty rates have become more spatially concentrated over time, which is consistent with widely observed growth processes linked to agglomeration. The authors hypothesize that this makes geographic targeting of the poor more relevant as a means to re-balance growing welfare disparities between geographic areas. Simulations indicate that in both 1999 and 2009, geographic targeting for poverty alleviation improves upon a uniform lump-sum transfer and this becomes more evident the more spatially disaggregated the target populations. The analysis further indicates that the gains from geographic targeting have become more pronounced over time in Vietnam. Although poverty reduction in Vietnam has been impressive, further progress may thus warrant increased attention to geographic targeting.

Suggested Citation

  • Lanjouw, Peter & Marra, Marleen & Nguyen, Cuong, 2013. "Vietnam's evolving poverty map : patterns and implications for policy," Policy Research Working Paper Series 6355, The World Bank.
  • Handle: RePEc:wbk:wbrwps:6355
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    References listed on IDEAS

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    1. Martin Ravallion & Shaohua Chen & Prem Sangraula, 2007. "New Evidence on the Urbanization of Global Poverty," Population and Development Review, The Population Council, Inc., vol. 33(4), pages 667-701.
    2. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-766, May.
    3. Nguyen Viet Cuong & Tran Ngoc Truong & Roy Van Der Weide, 2010. "Poverty and Inequality Maps in Rural Vietnam: An Application of Small Area Estimation," Asian Economic Journal, East Asian Economic Association, vol. 24(4), pages 355-390, December.
    4. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May.
    5. Tara Bedi & Aline Coudouel & Kenneth Simler, 2007. "More Than a Pretty Picture : Using Poverty Maps to Design Better Policies and Interventions," World Bank Publications, The World Bank, number 6800, July.
    6. Chris Elbers & Jean O. Lanjouw & Peter Lanjouw, 2003. "Micro--Level Estimation of Poverty and Inequality," Econometrica, Econometric Society, vol. 71(1), pages 355-364, January.
    7. Galasso, Emanuela & Ravallion, Martin, 2005. "Decentralized targeting of an antipoverty program," Journal of Public Economics, Elsevier, vol. 89(4), pages 705-727, April.
    8. Araujo, M. Caridad & Ferreira, Francisco H.G. & Lanjouw, Peter & Özler, Berk, 2008. "Local inequality and project choice: Theory and evidence from Ecuador," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1022-1046, June.
    9. Cuong, Nguyen Viet & Truong, Tran Ngoc & van der Weide, Roy, 2010. "Poverty and inequality maps for rural Vietnam: an application of small area estimation," Policy Research Working Paper Series 5443, The World Bank.
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    Citations

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    Cited by:

    1. Do, Trang & Nguyen, Cuong & Phung, Tung, 2013. "Assessment of Natural Disasters in Vietnam’s Northern Mountains," MPRA Paper 54209, University Library of Munich, Germany.
    2. Nguyen, Cuong & Nguyen, Lam, 2017. "Intra-generational and intergenerational mobility in Vietnam," MPRA Paper 80083, University Library of Munich, Germany.
    3. Le, Chau & Nguyen, Cuong & Phung, Thu & Phung, Tung, 2014. "Poverty Assessment of Ethnic Minorities in Vietnam," MPRA Paper 70090, University Library of Munich, Germany.
    4. Nguyen Viet, Cuong, 2014. "Impact Evaluation of Development Programmes and Policies: Experiences from Viet Nam," MPRA Paper 60919, University Library of Munich, Germany.
    5. Long Thanh Giang & Cuong Viet Nguyen & Tuyen Quang Tran, 2015. "A Linkage between Firm Agglomeration and Poverty Reduction First evidence in Vietnam," Working Papers 2015-617, Department of Research, Ipag Business School.
    6. Narloch, Ulf & Bangalore, Mook, 2018. "The multifaceted relationship between environmental risks and poverty: new insights from Vietnam," LSE Research Online Documents on Economics 87553, London School of Economics and Political Science, LSE Library.
    7. Jairo, Acuna-Alfaro & Nguyen, Cuong & Tran, Anh & Phung, Tung, 2014. "The Urban-Rural Gap in Governance: Evidence from Vietnam," MPRA Paper 64705, University Library of Munich, Germany.
    8. Le, Ha & Nguyen, Cuong & Phung, Tung, 2014. "Multidimensional Poverty: First Evidence from Vietnam," MPRA Paper 64704, University Library of Munich, Germany.
    9. Daniel, Mont & Nguyen, Cuong, 2013. "Spatial Variation in the Disability-Poverty Correlation: Evidence from Vietnam," MPRA Paper 48659, University Library of Munich, Germany.
    10. Ha Le & Cuong Nguyen & Tung Phung, 2015. "Multidimensional poverty: evidence from Vietnam," Economics Bulletin, AccessEcon, vol. 35(4), pages 2820-2831.
    11. Cousins, Mel, 2014. "Social Protection in the Mekong: policy trends and future directions," MPRA Paper 60026, University Library of Munich, Germany.
    12. Quang Tran, Tuyen & Viet Nguyen, Cuong & Van Vu, Huong, 2015. "Economic Inequality and Happiness: A quantitative study among the elderly in Rural Vietnam," MPRA Paper 81235, University Library of Munich, Germany, revised 14 Oct 2016.

    More about this item

    Keywords

    Rural Poverty Reduction; Regional Economic Development; Subnational Economic Development; Achieving Shared Growth;

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