IDEAS home Printed from https://ideas.repec.org/p/jet/dpaper/dpaper95.html
   My bibliography  Save this paper

Sources of Regional Income Disparity in Rural Vietnam: Oaxaca-Blinder Decomposition

Author

Listed:
  • Takahashi, Kazushi

Abstract

This paper investigates determinants of regional income disparity in rural Vietnam, with special emphasis placed on the roles of human capital and land. We apply a decomposition method, suggested by Oaxaca and Blinder. We found that returns to assets rather than endowments, especially those of human capital, are one of the leading factors to account for income differences across regions. We also found that substantial improvements of returns to human capital in the Red River delta region are a driving force to catch up with Mekong River delta region. Unexpectedly, differences in land endowment do not strongly correlate with regional income disparity because better access to land in a region was partially offset by lower returns.

Suggested Citation

  • Takahashi, Kazushi, 2007. "Sources of Regional Income Disparity in Rural Vietnam: Oaxaca-Blinder Decomposition," IDE Discussion Papers 95, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper95
    as

    Download full text from publisher

    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=38072&item_no=1&attribute_id=22&file_no=1
    File Function: First version, 2007
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dominique Van De Walle & Dorothyjean Cratty, 2004. "Is the emerging non‐farm market economy the route out of poverty in Vietnam?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 12(2), pages 237-274, June.
    2. Janvry, Alain de & Sadoulet, Elisabeth, 2001. "Income Strategies Among Rural Households in Mexico: The Role of Off-farm Activities," World Development, Elsevier, vol. 29(3), pages 467-480, March.
    3. Van de Walle, Dominique, 1998. "Protecting the poor in Vietnam's emerging market economy," Policy Research Working Paper Series 1969, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mohammed, Essam, 2011. "Pro-poor benefit distribution in REDD+: Who gets what and why does it matter?," MPRA Paper 43648, University Library of Munich, Germany.
    2. Nguyen, Binh Giang, 2008. "Improving the Foreign Direct Investment Capacity of the Mountainous Provinces in Viet Nam," IDE Discussion Papers 152, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    3. Xuan-Binh Vu & Son Nghiem, 2016. "Analysis of GDP trends and inequalities in Vietnam`s provinces and groups of provinces," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 6(7), pages 167-186, July.
    4. Thanh P. Bui & Katsushi S. Imai, 2019. "Determinants of Rural-Urban Inequality in Vietnam: Detailed Decomposition Analyses Based on Unconditional Quantile Regressions," Journal of Development Studies, Taylor & Francis Journals, vol. 55(12), pages 2610-2625, December.
    5. Phuc Phan & Martin O’Brien, 2019. "Multidimensional Wellbeing Inequality in a Developing Country: A Case Study of Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 157-183, August.
    6. Jonathan Haughton & Wendi Sun & Le Thi Thanh Loan, 2018. "Discrimination against Migrants in Urban Vietnam," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 24(3), pages 211-232, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maja Micevska & Dil Bahadur Rahut, 2008. "Rural Nonfarm Employment and Incomes in the Himalayas," Economic Development and Cultural Change, University of Chicago Press, vol. 57(1), pages 163-193, October.
    2. Seebens, Holger, 2009. "The contribution of female non-farm income to poverty reduction," 2009 Conference, August 16-22, 2009, Beijing, China 51762, International Association of Agricultural Economists.
    3. Pham Bao Duong & Pham Tien Thanh & Tihomir Ancev, 2021. "Impacts of off‐farm employment on welfare, food security and poverty: Evidence from rural Vietnam," International Journal of Social Welfare, John Wiley & Sons, vol. 30(1), pages 84-96, January.
    4. Dil Bahadur Rahut & Maja Micevska Scharf, 2012. "Livelihood diversification strategies in the Himalayas," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(4), pages 558-582, October.
    5. Jonasson, Erik & Helfand, Steven M., 2010. "How Important are Locational Characteristics for Rural Non-agricultural Employment? Lessons from Brazil," World Development, Elsevier, vol. 38(5), pages 727-741, May.
    6. Dil Bahadur Rahut Chhetri & Pradyot Ranjan Jena & Akhter Ali & Bhagirath Behera & Nar Bahadur Chhetri, 2015. "Rural Nonfarm Employment, Income, and Inequality: Evidence from Bhutan," Asian Development Review, MIT Press, vol. 32(2), pages 65-94, September.
    7. John Rand, 2007. "‘Credit Constraints and Determinants of the Cost of Capital in Vietnamese Manufacturing’," Small Business Economics, Springer, vol. 29(1), pages 1-13, June.
    8. Chloé Duvivier Duvivier & Mary-Françoise Renard & Shi Li, 2012. "Are workers close to cities paid higher non-agricultural wages in rural China?," CERDI Working papers halshs-00673698, HAL.
    9. Zeeshan & Geetilaxmi Mohapatra & Arun Kumar Giri, 2022. "How Farm Household Spends Their Non-farm Incomes in Rural India? Evidence from Longitudinal Data," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(4), pages 1967-1996, August.
    10. Tianyuan Luo & Cesar L Escalante, 2017. "US farm workers: What drives their job retention and work time allocation decisions?," The Economic and Labour Relations Review, , vol. 28(2), pages 270-293, June.
    11. Xinhui Wu & Luan Chen & Li Ma & Liru Cai & Xun Li, 2023. "Return migration, rural household investment decision, and poverty alleviation: Evidence from rural Guangdong, China," Growth and Change, Wiley Blackwell, vol. 54(1), pages 304-325, March.
    12. Muhammad Rizwan & Ping Qing & Abdul Saboor & Muhammad Amjed Iqbal & Adnan Nazir, 2020. "Production Risk and Competency among Categorized Rice Peasants: Cross-Sectional Evidence from an Emerging Country," Sustainability, MDPI, vol. 12(9), pages 1-15, May.
    13. Chen, Xuan & Vuong, Nguyen, 2018. "Climate and Off-farm Labor Supply of Agricultural Households: Evidence from Rural Vietnam," 2018 Annual Meeting, August 5-7, Washington, D.C. 274187, Agricultural and Applied Economics Association.
    14. Gayatri Koolwal & Dominique van de Walle, 2013. "Access to Water, Women's Work, and Child Outcomes," Economic Development and Cultural Change, University of Chicago Press, vol. 61(2), pages 369-405.
    15. Paul Lewin, 2005. "America Latina: Hambre y Alimentos en Abundancia," Development and Comp Systems 0503004, University Library of Munich, Germany.
    16. Muhammad Amjed Iqbal & Muhammad Rizwan & Azhar Abbas & Muhammad Sohail Amjad Makhdum & Rakhshanda Kousar & Muhammad Nazam & Abdus Samie & Nasir Nadeem, 2021. "A Quest for Livelihood Sustainability? Patterns, Motives and Determinants of Non-Farm Income Diversification among Agricultural Households in Punjab, Pakistan," Sustainability, MDPI, vol. 13(16), pages 1-14, August.
    17. Nguyen, Huy, 2014. "The effect of land fragmentation on labor allocation and the economic diversity of farm households: The case of Vietnam," MPRA Paper 57521, University Library of Munich, Germany.
    18. Lay, Jann & M'Mukaria, George Michuki & Omar Mahmoud, Toman, 2007. "Boda-bodas Rule: Non-agricultural Activities and Their Inequality Implications in Western Kenya," GIGA Working Papers 48, GIGA German Institute of Global and Area Studies.
    19. Curtiss, Jarmila & Jelínek, Ladislav & Hruška, Martin & Medonos, Tomáš & Vilhelm, Václav, 2013. "The Effect of Heterogeneous Buyers on Agricultural Land Prices: The Case of the Czech Land Market," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(2).
    20. Winters, Paul & Davis, Benjamin & Corral, Leonardo, 2002. "Assets, activities and income generation in rural Mexico: factoring in social and public capital," Agricultural Economics, Blackwell, vol. 27(2), pages 139-156, August.

    More about this item

    Keywords

    Income inequality; Human capital; Land; Vietnam; Income distribution; Human resources; 所得不平等; 人的資本; 土地; ベトナム; 所得分配; 人的資源;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jet:dpaper:dpaper95. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michitaka Imamitsu (email available below). General contact details of provider: https://edirc.repec.org/data/idegvjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.