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On the effects of trade on multidimensional deprivation: Evidence from Vietnam’s rice growing households

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  • Hoang, Viet-Ngu
  • Vu, Duc-Cuong

Abstract

Welfare and poverty are multidimensional in nature. However, empirical research on the impacts of trade liberalisation on multidimensional welfare is rare. This paper provides one of the first empirical analyses of the impact of trade liberalisation on multidimensional deprivation of rice farmers utilising data from the six waves of the Vietnam Household Living Standard Surveys. Our empirical model captures the direct effects of incomes from farm and non-farm activities and indirect effects of employment, rice price levels, rice production and domestic trade. Results unveil several important new findings which have policy implications. A higher level of export openness is correlated with higher levels of income from farming and non-farm activities. Higher income levels appear to reduce multidimensional deprivation but working in export-oriented industries increases it. Farmers selling rice to domestic private traders generate higher income than those selling to government-owned trading companies. Regional farming productivity, the scale of rice production, crop diversification, and education help increase income and reduce deprivation.

Suggested Citation

  • Hoang, Viet-Ngu & Vu, Duc-Cuong, 2021. "On the effects of trade on multidimensional deprivation: Evidence from Vietnam’s rice growing households," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 476-485.
    • Handle: RePEc:eee:ecanpo:v:71:y:2021:i:c:p:476-485
    DOI: 10.1016/j.eap.2021.06.004
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    References listed on IDEAS

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    Cited by:

    1. Do, Manh Hung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Land consolidation, rice production, and agricultural transformation: Evidence from household panel data for Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 157-173.
    2. Nguyen, Thanh-Tung & Nguyen, Trung Thanh & Grote, Ulrike, 2023. "Credit, shocks and production efficiency of rice farmers in Vietnam," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 780-791.
    3. Manh Hung Do & Trung Thanh Nguyen & Ulrike Grote, 2022. "Is land consolidation policy a solution for rice production and agricultural transformation in Vietnam?," TVSEP Working Papers wp-028, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    4. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialization and asset growth for poverty reduction: Evidence from panel data for rural Vietnam," TVSEP Working Papers wp-032, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    5. Oliver Schulte & Julian Mumber & Trung Thanh Nguyen, 2023. "Agricultural commercialisation, asset growth and poverty in rural Vietnam," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 67(3), pages 388-416, July.

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    More about this item

    Keywords

    Multidimensional poverty; Trade openness; Rice farming households;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • 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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