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Does Urbanization Help Poverty Reduction in Rural Areas? Evidence from Vietnam

Author

Listed:
  • Mohamed Arouri

    (Faculté des Sciences Economiques et de Gestion)

  • Adel Ben Youssef

    (Economic Research Forum)

  • Cuong Nguyen-Viet

    (Mekong Development Research Institute and National Economics University, Hanoi, Vietnam)

Abstract
Urbanization and poverty have a two-way relationship. Using fixed-effects regression and panel data from household surveys, we estimate the effect of urbanization on welfare and poverty of rural households in Vietnam. We find that urbanization tends to increase landlessness of rural households and to reduce their farm income. However, urbanization helps rural households increase their wages and non-farm incomes. As a result, total income and consumption expenditure of rural households tend to be increased with urbanization. Then we find that urbanization also helps rural households decrease the expenditure poverty rate, albeit at a small magnitude. JEL Codes: O18, I30, R11

Suggested Citation

  • Mohamed Arouri & Adel Ben Youssef & Cuong Nguyen-Viet, 2016. "Does Urbanization Help Poverty Reduction in Rural Areas? Evidence from Vietnam," PGDA Working Papers 11514, Program on the Global Demography of Aging.
    • Handle: RePEc:gdm:wpaper:11514
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    File URL: https://cdn1.sph.harvard.edu/wp-content/uploads/sites/1288/2014/09/PGDA_WP_115.pdf
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    Cited by:

    1. repec:ipg:wpaper:2014-454 is not listed on IDEAS
    2. repec:ipg:wpaper:2014-478 is not listed on IDEAS
    3. Jaax, Alexander, 2020. "Private sector development and provincial patterns of poverty: Evidence from Vietnam," World Development, Elsevier, vol. 127(C).
    4. Elisabeth Simelton & Tuan Minh Duong & Ella Houzer, 2021. "When the “Strong Arms” Leave the Farms—Migration, Gender Roles and Risk Reduction in Vietnam," Sustainability, MDPI, vol. 13(7), pages 1-30, April.

    More about this item

    Keywords

    urbanization; household welfare; rural poverty; impact evaluation; household surveys; Vietnam; Asia;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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