IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/88823.html
   My bibliography  Save this paper

Forestland and household welfares in North Central Provinces, Vietnam

Author

Listed:
  • Quang Tran, Tuyen
  • Viet Nguyen, Thanh

Abstract

This paper investigates the effects of forestland on household income, poverty and inequality among households in Vietnam’s poorest rural districts, the North Central Provinces, using data from the Quantitative Socio-Economic Survey for Emission Reduction-Program (ERP) Provinces Areas [QSESERPA]. Local people are extremely poor, with 54% living below the poverty line. Forest income constitutes about 17% of their total income; only wage income (37%) ranks higher. Surprisingly, those better off depend on forest income more than the poor do. Such income is comprised mainly of non-timber forest plants (77%), followed by timber products (18%). Our micro-econometric analysis indicates that gaining access to more forestland would increase household per capita income and reduce the incidence and intensity of poverty, even after controlling for all other variables in the model. In addition, we find that forest income was the second largest contributor to overall income inequality and had the largest marginal effect on it. A policy implication here is that increasing the access of the poor to forest resources and improving their efficiency in forest management could have a substantial effect on income, poverty and inequality in the study area.

Suggested Citation

  • Quang Tran, Tuyen & Viet Nguyen, Thanh, 2018. "Forestland and household welfares in North Central Provinces, Vietnam," MPRA Paper 88823, University Library of Munich, Germany, revised 17 Feb 2018.
    • Handle: RePEc:pra:mprapa:88823
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/88823/1/MPRA_paper_88823.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Tran Quang Tuyen, 2015. "Socio-Economic Determinants of Household Income among Ethnic Minorities in the North-West Mountains, Vietnam," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 17(1), pages 139-159, June.
    2. Tuyen Quang Tran & Son Hong Nguyen & Huong Van Vu & Viet Quoc Nguyen, 2015. "A note on poverty among ethnic minorities in the Northwest region of Vietnam," Post-Communist Economies, Taylor & Francis Journals, vol. 27(2), pages 268-281, June.
    3. Das, Nimai, 2010. "Incidence of forest income on reduction of inequality: Evidence from forest dependent households in milieu of joint forest management," Ecological Economics, Elsevier, vol. 69(8), pages 1617-1625, June.
    4. Behera, Bhagirath, 2009. "Explaining the performance of state-community joint forest management in India," Ecological Economics, Elsevier, vol. 69(1), pages 177-185, November.
    5. Ben Jann, 2016. "Estimating Lorenz and concentration curves," Stata Journal, StataCorp LP, vol. 16(4), pages 837-866, December.
    6. Lerman, Robert I & Yitzhaki, Shlomo, 1985. "Income Inequality Effects by Income," The Review of Economics and Statistics, MIT Press, vol. 67(1), pages 151-156, February.
    7. Stark, Oded & Taylor, J Edward & Yitzhaki, Shlomo, 1986. "Remittances and Inequality," Economic Journal, Royal Economic Society, vol. 96(383), pages 722-740, September.
    8. Wunder, Sven & Angelsen, Arild & Belcher, Brian, 2014. "Forests, Livelihoods, and Conservation: Broadening the Empirical Base," World Development, Elsevier, vol. 64(S1), pages 1-11.
    9. 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.
    10. Angelsen, Arild & Jagger, Pamela & Babigumira, Ronnie & Belcher, Brian & Hogarth, Nicholas J. & Bauch, Simone & Börner, Jan & Smith-Hall, Carsten & Wunder, Sven, 2014. "Environmental Income and Rural Livelihoods: A Global-Comparative Analysis," World Development, Elsevier, vol. 64(S1), pages 12-28.
    11. Christiaensen, Luc & Scott, Christopher & Wodon, Quentin, 2002. "Poverty Measurement and Analysis," MPRA Paper 45362, University Library of Munich, Germany.
    12. Adams, Richard H., Jr., 1991. "The effects of international remittances on poverty, inequality, and development in rural Egypt:," Research reports 86, International Food Policy Research Institute (IFPRI).
    13. Hogarth, Nicholas J. & Belcher, Brian & Campbell, Bruce & Stacey, Natasha, 2013. "The Role of Forest-Related Income in Household Economies and Rural Livelihoods in the Border-Region of Southern China," World Development, Elsevier, vol. 43(C), pages 111-123.
    14. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    15. Ben Jann, 2016. "Estimating Lorenz and concentration curves in Stata," University of Bern Social Sciences Working Papers 15, University of Bern, Department of Social Sciences, revised 27 Oct 2016.
    16. Thulstrup, Andreas Waaben, 2015. "Livelihood Resilience and Adaptive Capacity: Tracing Changes in Household Access to Capital in Central Vietnam," World Development, Elsevier, vol. 74(C), pages 352-362.
    Full references (including those not matched with items on IDEAS)

    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. Nguyen, Thanh Viet & Tran, Tuyen Quang, 2018. "Forestland and rural household livelihoods in the North Central Provinces, Vietnam," Land Use Policy, Elsevier, vol. 79(C), pages 10-19.
    2. Felkner, John S. & Lee, Hyun & Shaikh, Sabina & Kolata, Alan & Binford, Michael, 2022. "The interrelated impacts of credit access, market access and forest proximity on livelihood strategies in Cambodia," World Development, Elsevier, vol. 155(C).
    3. Taylor, J. Edward, 1992. "Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects," Journal of Policy Modeling, Elsevier, vol. 14(2), pages 187-208, April.
    4. Bierkamp, Sina & Nguyen, Trung Thanh & Grote, Ulrike, 2021. "Environmental income and remittances: Evidence from rural central highlands of Vietnam," Ecological Economics, Elsevier, vol. 179(C).
    5. Begazo Curie, Karin & Mertens, Kewan & Vranken, Liesbet, 2021. "Tenure regimes and remoteness: When does forest income reduce poverty and inequality? A case study from the Peruvian Amazon," Forest Policy and Economics, Elsevier, vol. 128(C).
    6. Londres, Marina & Schmink, Marianne & Börner, Jan & Duchelle, Amy E. & Frey, Gabriel Ponzoni, 2023. "Multidimensional forests: Complexity of forest-based values and livelihoods across Amazonian socio-cultural and geopolitical contexts," World Development, Elsevier, vol. 165(C).
    7. Wahlén, Catherine Benson, 2017. "Opportunities for making the invisible visible: Towards an improved understanding of the economic contributions of NTFPs," Forest Policy and Economics, Elsevier, vol. 84(C), pages 11-19.
    8. Walelign, Solomon Zena & Jiao, Xi, 2017. "Dynamics of rural livelihoods and environmental reliance: Empirical evidence from Nepal," Forest Policy and Economics, Elsevier, vol. 83(C), pages 199-209.
    9. Sadeghi, Azin & Zhunusova, Eliza & Günter, Sven & Dieter, Matthias, 2023. "Households' livelihood in restricted forest landscapes: What is the impact of contextual factors?," Forest Policy and Economics, Elsevier, vol. 154(C).
    10. Meyer, Maximilian & Hulke, Carolin & Kamwi, Jonathan & Kolem, Hannah & Börner, Jan, 2022. "Spatially heterogeneous effects of collective action on environmental dependence in Namibia’s Zambezi region," World Development, Elsevier, vol. 159(C).
    11. Shyamsundar, Priya & Ahlroth, Sofia & Kristjanson, Patricia & Onder, Stefanie, 2020. "Supporting pathways to prosperity in forest landscapes – A PRIME framework," World Development, Elsevier, vol. 125(C).
    12. López-Feldman, Alejandro, 2014. "Shocks, Income and Wealth: Do They Affect the Extraction of Natural Resources by Rural Households?," World Development, Elsevier, vol. 64(S1), pages 91-100.
    13. Tran, Tuyen & Vu, Huong, 2013. "Farmland loss, nonfarm diversification and inequality: A micro-econometric analysis of household surveys in Vietnam," MPRA Paper 47596, University Library of Munich, Germany.
    14. Wiebe, Pia Christine & Zhunusova, Eliza & Lippe, Melvin & Ferrer Velasco, Rubén & Günter, Sven, 2022. "What is the contribution of forest-related income to rural livelihood strategies in the Philippines' remaining forested landscapes?," Forest Policy and Economics, Elsevier, vol. 135(C).
    15. 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.
    16. Feuerbacher, Arndt & Rai, Arun & Lofgren, Hans & Sander, Klas & Grethe, Harald, 2021. "Policies to reconcile forest conservation and rural development: A pathway to bridge the forest transition in Bhutan?," Land Use Policy, Elsevier, vol. 109(C).
    17. Quang Tran, Tuyen & Anh Tran, Tai & The Tran, Nu & Thi Nguyen, Hai, 2018. "Education and the livelihood of households in the Northwest Region, Vietnam," MPRA Paper 90414, University Library of Munich, Germany, revised 17 May 2018.
    18. Ntuli, Herbert & Muchapondwa, Edwin, 2017. "Effects of wildlife resources on community welfare in Southern Africa," Ecological Economics, Elsevier, vol. 131(C), pages 572-583.
    19. Harun M. Kiruki & Emma H. Zanden & Patrick Kariuki & Peter H. Verburg, 2020. "The contribution of charcoal production to rural livelihoods in a semi-arid area in Kenya," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(7), pages 6931-6960, October.
    20. Mohammad Abdullah, Abu Nasar & Stacey, Natasha & Garnett, Stephen T. & Myers, Bronwyn, 2016. "Economic dependence on mangrove forest resources for livelihoods in the Sundarbans, Bangladesh," Forest Policy and Economics, Elsevier, vol. 64(C), pages 15-24.

    More about this item

    Keywords

    forestland; forest income; fractional probit; Gini decomposition; shortfall;
    All these keywords.

    JEL classification:

    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis

    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:pra:mprapa:88823. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.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.