Impacts of Vietnam’s new rural development policy on rural households’ income: empirical evidence from the Heckman selection model

Manh Hung Do and Sang Chul Park

International Review of Public Administration, 2019, vol. 24, issue 4, 229-245

Abstract: The New Rural Development program (NRD) is among the top developmental policies of Vietnam’s government to cope with imperative issues in the rural regions, especially a widening income gap between the urban and rural regions. This paper is the first trial for studying on key social, economic, and natural conditions affecting communes’ adoption of the NRD and factors impacting on rural households’ income based on the NRD’s implementation criteria using a Heckman Selection model to substantiate the NRD’s performance of increasing rural households’ income. The estimation model signifies that the poverty rate has a negative impact on the NRD’s adoption in contrast to geographical aspects, average ages, and cooperative variables. At the outcome estimation, rural infrastructure development and technology transfer exert a strong influence on rural households’ earnings. This implies that promoting investments in infrastructure and technology transfer are crucial for rural development, especially with the income increase purposes.

Date: 2019
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DOI: 10.1080/12294659.2019.1662165

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