Does urbanization reduce rural poverty? Evidence from Vietnam |
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| Institution: | 1. Centre Clermontois de Recherche en Gestion et Management (CRCGM), Clermont-Ferrand, France;2. Université Côte d''Azur, CNRS, GREDEG (UMR, 7321), Nice, France;3. National Economic University, Hanoi, Vietnam;1. School of Economics, The University of Queensland, Brisbane 4072, QLD, Australia;2. School of Economics and Finance, Queensland University of Technology, Brisbane, QLD, Australia;1. Institute of Governance, Shandong University, Qingdao, 266237, China;2. College of Resource and Environment, Shandong Agricultural University, Taian, 271018, China;1. Mekong Development Research Institute, Hanoi, Viet Nam;2. Georgetown University, Washington, DC, USA;3. Georgetown''s School of Foreign Service in Qatar, Qatar;4. National Economics University, Hanoi, Vietnam |
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| Abstract: | This paper uses data from household surveys to contribute to the urbanization-poverty nexus literature by assessing the effect of urbanization on income, expenditure, and poverty in rural households in Vietnam. We find that the urbanization process stimulates the transition from farm to non-farm activities in rural areas. More specifically, urbanization tends to reduce farm income and increase wages and non-farm income in rural households. This suggests that total income and consumption expenditure of rural households are more likely to increase with urbanization. Finally, we find also that urbanization helps decrease the expenditure poverty rate of rural households, albeit by a small magnitude. |
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| Keywords: | Urbanization Rural poverty Impact evaluation Household surveys Vietnam |
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