Does Urbanization Help Poverty Reduction in Rural Areas? Evidence from Vietnam

Mohamed Arouri, Adel Ben Youssef and Cuong Nguyen

PGDA Working Papers from Program on the Global Demography of Aging

Abstract: Urbanization and poverty have a two-way relationship. Using fixed-effects regression and panel data from household surveys, we estimate the effect of urbanization on welfare and poverty of rural households in Vietnam. We find that urbanization tends to increase landlessness of rural households and to reduce their farm income. However, urbanization helps rural households increase their wages and non-farm incomes. As a result, total income and consumption expenditure of rural households tend to be increased with urbanization. Then we find that urbanization also helps rural households decrease the expenditure poverty rate, albeit at a small magnitude. JEL Codes: O18, I30, R11

Keywords: urbanization; household welfare; rural poverty; impact evaluation; household surveys; Vietnam; Asia (search for similar items in EconPapers)
Date: 2016-10
New Economics Papers: this item is included in nep-agr, nep-sea, nep-tra and nep-ure
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Working Paper: Does Urbanization Help Poverty Reduction in Rural Areas? Evidence from Vietnam (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:gdm:wpaper:11514

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