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Local infrastructure, resilience capacity and poverty in rural Southeast Asia

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  • Tim Hartwig
  • Trung Thanh Nguyen

Abstract

We examine the association between infrastructure and a household’s resilience capacity against shocks and the impacts of a household’s resilience capacity on household consumption and poverty. We use panel data (collected in 2010, 2013, and 2016) from 1,698 households in Thailand and 1,701 households in Vietnam and employ an instrumental variable approach. We find that transportation and information and communication technology infrastructure help improve households’ absorptive capacity in coping with shocks. Furthermore, this capacity can prevent households from reducing consumption and falling into poverty. Thus, rural development policies should attend to transportation and information and communication technology infrastructure.

Suggested Citation

  • Tim Hartwig & Trung Thanh Nguyen, 2022. "Local infrastructure, resilience capacity and poverty in rural Southeast Asia," TVSEP Working Papers wp-029, Leibniz Universitaet Hannover, Institute for Environmental Economics and World Trade, Project TVSEP.
    • Handle: RePEc:tvs:wpaper:wp-029
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    Cited by:

    1. Mulubrhan Amare & Priyanka Parvathi & Trung Thanh Nguyen, 2023. "Micro insights on the pathways to agricultural transformation: Comparative evidence from Southeast Asia and Sub‐Saharan Africa," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 71(1), pages 69-87, March.
    2. Thanh‐Tung Nguyen & Trung Thanh Nguyen & Ulrike Grote, 2023. "Internet use and agricultural productivity in rural Vietnam," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1309-1326, August.

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    More about this item

    Keywords

    Infrastructure; Resilience capacity; Poverty; Instrumental variable; Thailand; Vietnam;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • 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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