 Trade Liberalisation and Poverty Reduction in VietnamYoon Heo and Nguyen Khanh Doanh The World Economy, 2009, vol. 32, issue 6, 934-964 Abstract: This paper investigates the impacts of trade liberalisation on poverty reduction in Vietnam during the period of economic reform. Using a combined approach dealing with four transmitting channels from trade to poverty, the major findings are summarised as follows. First, Vietnam's trade liberalisation has fostered economic growth, which has helped to raise per capita GDP and reduce poverty. Second, trade liberalisation has directly benefited the poor through creating pro‐poor employment and raising wages. Third, another impact of trade liberalisation on poverty is income and substitution effects associated with reduced domestic prices of importables and increased domestic prices of exportables such as coffee and rice. Fourth, trade liberalisation has indirectly benefited the poor because it raises government revenue, which enhances the government's ability to subsidise the poor. Finally, although the poverty rate in Vietnam has been reduced impressively, there is an increasing disparity between urban and rural areas and, among the latter, concern does exist regarding ethnic minorities. Date: 2009 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:32:y:2009:i:6:p:934-964 Ordering information: This journal article can be ordered from Access Statistics for this article The World Economy is currently edited by David Greenaway More articles in The World Economy from Wiley Blackwell |
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