Details
| Original language | English |
|---|---|
| Pages (from-to) | 388-416 |
| Number of pages | 29 |
| Journal | Australian Journal of Agricultural and Resource Economics |
| Volume | 67 |
| Issue number | 3 |
| Publication status | Published - 11 Jul 2023 |
Abstract
Poverty remains a substantial threat in rural areas of many developing countries, and solving this problem requires an in-depth understanding of the income generating capacity that determines poverty. This paper examines the impact of agricultural commercialisation on the capability of rural households to accumulate and productively use assets and reduce structural and multidimensional poverty. A longitudinal dataset of around 2000 households with a total of 9781 observations from five rural surveys undertaken in the period 2008–2017 in Vietnam is used. Results from a fixed effects regression with an instrumental variable and a control function approach show that agricultural commercialisation has a positive effect on the accumulation of assets and reduces multidimensional and structural poverty over time. However, the effect is not homogeneous and is larger for households that are not mainly engaged in rice commercialisation. This suggests that commercialisation can be a path out of poverty, especially if policy makers move towards utilising other crops instead of rice.
Keywords
- asset growth, asset-based income, commercialisation, control function, fixed effects, instrumental variable
ASJC Scopus subject areas
- Agricultural and Biological Sciences(all)
- Agricultural and Biological Sciences (miscellaneous)
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
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In: Australian Journal of Agricultural and Resource Economics, Vol. 67, No. 3, 11.07.2023, p. 388-416.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Agricultural commercialisation, asset growth and poverty in rural Vietnam
AU - Schulte, Oliver
AU - Mumber, Julian
AU - Nguyen, Trung Thanh
N1 - Funding Information: We thank the farmers in Ha Tinh, Thua Thien Hue and Dak Lak provinces for their support and cooperation. We acknowledge the financial support from the German Research Foundation (DFG) through the long‐term Thailand‐Vietnam Socioeconomic Panel Project (DFG ‐ FOR 756/2, www.tvsep.de ). The constructive comments from the editor‐in‐chief and two reviewers are greatly acknowledged. Open Access funding enabled and organized by Projekt DEAL.
PY - 2023/7/11
Y1 - 2023/7/11
N2 - Poverty remains a substantial threat in rural areas of many developing countries, and solving this problem requires an in-depth understanding of the income generating capacity that determines poverty. This paper examines the impact of agricultural commercialisation on the capability of rural households to accumulate and productively use assets and reduce structural and multidimensional poverty. A longitudinal dataset of around 2000 households with a total of 9781 observations from five rural surveys undertaken in the period 2008–2017 in Vietnam is used. Results from a fixed effects regression with an instrumental variable and a control function approach show that agricultural commercialisation has a positive effect on the accumulation of assets and reduces multidimensional and structural poverty over time. However, the effect is not homogeneous and is larger for households that are not mainly engaged in rice commercialisation. This suggests that commercialisation can be a path out of poverty, especially if policy makers move towards utilising other crops instead of rice.
AB - Poverty remains a substantial threat in rural areas of many developing countries, and solving this problem requires an in-depth understanding of the income generating capacity that determines poverty. This paper examines the impact of agricultural commercialisation on the capability of rural households to accumulate and productively use assets and reduce structural and multidimensional poverty. A longitudinal dataset of around 2000 households with a total of 9781 observations from five rural surveys undertaken in the period 2008–2017 in Vietnam is used. Results from a fixed effects regression with an instrumental variable and a control function approach show that agricultural commercialisation has a positive effect on the accumulation of assets and reduces multidimensional and structural poverty over time. However, the effect is not homogeneous and is larger for households that are not mainly engaged in rice commercialisation. This suggests that commercialisation can be a path out of poverty, especially if policy makers move towards utilising other crops instead of rice.
KW - asset growth
KW - asset-based income
KW - commercialisation
KW - control function
KW - fixed effects
KW - instrumental variable
UR - http://www.scopus.com/inward/record.url?scp=85159715786&partnerID=8YFLogxK
U2 - 10.1111/1467-8489.12517
DO - 10.1111/1467-8489.12517
M3 - Article
AN - SCOPUS:85159715786
VL - 67
SP - 388
EP - 416
JO - Australian Journal of Agricultural and Resource Economics
JF - Australian Journal of Agricultural and Resource Economics
SN - 1364-985X
IS - 3
ER -