Poverty Dynamics during Trade Reform: Evidence from Rural Vietnam

Justino, Patricia, Litchfield, Julie and Pham, Hung Thai (2008) Poverty Dynamics during Trade Reform: Evidence from Rural Vietnam. Review of Income and Wealth, 54 (2). pp. 166-192. ISSN 0034-6586

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Abstract

This paper implements and adapts the conceptual framework developed by Winters (2002) that identifies the transmission mechanisms between trade policy reform and household welfare outcomes. We make use of household panel data from Vietnam collected in two years, 1992-93 and 1997-98 that span the very earliest years of the reform period and its immediate after effects. Poverty dynamics are modeled using changes in consumption expenditure and poverty transition models. The trade effect is captured by a set of variables that are most likely to have an impact on rural poverty, namely prices of staples and employment in the export sector. We show that trade liberalization has a material and positive effect on rural household welfare and this trade effect is largely transmitted to the poor through the labor market channel. Copyright 2008 The Authors. Journal compilation International Association for Research in Income and Wealth 2008.

Item Type: Article
Schools and Departments: School of Business, Management and Economics > Economics
Depositing User: Patricia Justino
Date Deposited: 06 Feb 2012 19:30
Last Modified: 27 Mar 2012 15:00
URI: http://sro.sussex.ac.uk/id/eprint/20945
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