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Does urbanization reduce rural poverty? Evidence from Vietnam

Mohamed Arouri (), Adel Ben Youssef and Cuong Nguyen ()

Economic Modelling, 2017, vol. 60, issue C, 253-270

Abstract: This paper uses data from household surveys to contribute to the urbanization-poverty nexus literature by assessing the effect of urbanization on income, expenditure, and poverty in rural households in Vietnam. We find that the urbanization process stimulates the transition from farm to non-farm activities in rural areas. More specifically, urbanization tends to reduce farm income and increase wages and non-farm income in rural households. This suggests that total income and consumption expenditure of rural households are more likely to increase with urbanization. Finally, we find also that urbanization helps decrease the expenditure poverty rate of rural households, albeit by a small magnitude.

Keywords: Urbanization; Rural poverty; Impact evaluation; Household surveys; Vietnam (search for similar items in EconPapers)
JEL-codes: I30 O18 R11 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1016/j.econmod.2016.09.022

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