TY - JOUR

T1 - Livestock production and income inequality in rural Vietnam

AU - Do, Truong Lam

AU - Nguyen, Trung Thanh

AU - Grote, Ulrike

N1 - Funding Information: We thank the farmers in Vietnam for their support and cooperation. Support from the German Research Foundation (DFG, funding No. DFG—FOR 756/1 & 2) and our colleagues at the Leibniz University Hannover for data collection within the research Project “Thailand-Vietnam Socioeconomic Panel ( www.tvsep.de )” is highly appreciated. The constructive comments and suggestions from the associate editor, from the coordinating editor, and from two anonymous reviewers are greatly acknowledged.

PY - 2022/2

Y1 - 2022/2

N2 - We examine the factors affecting livestock production by using a two-part fixed effects model and assess the contribution of livestock production in reducing income inequality by using the Gini decomposition method. We use panel household data from four rural surveys in three provinces of Vietnam. Our results show that (1) livestock production can bring either positive or negative income; (2) positive livestock income contributes about 11% to annual household income, but this figure is only 7% if negative livestock income is included; (3) positive livestock income reduces rural income inequality by about 3.3%, but this figure becomes 1.2% if negative livestock income is included. We suggest that enhancing access to credits, promoting rural education and road conditions, and empowering rural households to better cope with demographic shocks reduce negative livestock income and consequently improve income equality. In addition, priorities should be given to the development of large livestock.

AB - We examine the factors affecting livestock production by using a two-part fixed effects model and assess the contribution of livestock production in reducing income inequality by using the Gini decomposition method. We use panel household data from four rural surveys in three provinces of Vietnam. Our results show that (1) livestock production can bring either positive or negative income; (2) positive livestock income contributes about 11% to annual household income, but this figure is only 7% if negative livestock income is included; (3) positive livestock income reduces rural income inequality by about 3.3%, but this figure becomes 1.2% if negative livestock income is included. We suggest that enhancing access to credits, promoting rural education and road conditions, and empowering rural households to better cope with demographic shocks reduce negative livestock income and consequently improve income equality. In addition, priorities should be given to the development of large livestock.

KW - Gini decomposition

KW - Income inequality

KW - Livestock income

KW - Panel data

KW - Two-part fixed effects model

UR - http://www.scopus.com/inward/record.url?scp=85100709765&partnerID=8YFLogxK

U2 - 10.1007/s00181-021-02022-6

DO - 10.1007/s00181-021-02022-6

M3 - Article

AN - SCOPUS:85100709765

VL - 62

SP - 409

EP - 438

JO - Empirical economics

JF - Empirical economics

SN - 0377-7332

IS - 2

ER -