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Measuring the impact of cash crops on household expenditure and poverty in rural Viet Nam

Author

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  • Nguyen Viet Cuong

    (Faculty of Trade and International Economics, National Economics University, Viet Nam)

Abstract

This paper measures the impacts of cash crops on household consumption expenditure and poverty in rural Viet Nam using data from the Viet Nam household living standards surveys (VHLSSs) of 2002 and 2004. It has been found that revenues from cash crops have positive and statistically significant impacts on per capita expenditure. More specifically, an increase of 1 Viet Nam dong (VND) in rice revenues leads to an increase of 0.019 VND in per capita expenditure, and the corresponding figures for revenues from annual crops, perennial crops and fruits are 0.038, 0.040 and 0.036, respectively. As a result, crop sales have positive and statistically significant impacts on poverty reduction for crop-growing households and the rural population. The poverty-reducing impacts are found to be positive for all three Foster-Greer-Thorbecke poverty measures.

Suggested Citation

  • Nguyen Viet Cuong, 2009. "Measuring the impact of cash crops on household expenditure and poverty in rural Viet Nam," Asia-Pacific Development Journal, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), vol. 16(2), pages 87-112, December.
    • Handle: RePEc:unt:jnapdj:v:16:y:2009:i:2:p:87-112
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    References listed on IDEAS

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    1. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1.
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    4. Ruben, Ruerd & Van den berg, Marrit, 2001. "Nonfarm Employment and Poverty Alleviation of Rural Farm Households in Honduras," World Development, Elsevier, vol. 29(3), pages 549-560, March.
    5. Thorbecke, Erik & Jung, Hong-Sang, 1996. "A multiplier decomposition method to analyze poverty alleviation," Journal of Development Economics, Elsevier, vol. 48(2), pages 279-300, March.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    2. Lingjuan Cheng & Wei Zou & Kaifeng Duan, 2021. "The Influence of New Agricultural Business Entities on the Economic Welfare of Farmer’s Families," Agriculture, MDPI, vol. 11(9), pages 1-15, September.
    3. M. J. Hossain & A. K. M. Abdullah Al-Amin, 2019. "Non-farm Income and Consumption Expenditures in Rural Bangladesh: Empirical Evidence from Multilevel Regression Modelling," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(2), pages 377-396, June.

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    More about this item

    Keywords

    Cash crop; agriculture; farm households; welfare; poverty; Viet Nam;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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