Insights on household’s resilience to shocks and poverty: evidence from panel data for two emerging economies in Southeast Asia

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Authors

  • Manh Hung Do
  • Trung Thanh Nguyen
  • Ulrike Grote
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Original languageEnglish
JournalClimate and Development
Early online date1 Jan 2025
Publication statusE-pub ahead of print - 1 Jan 2025

Abstract

Given the importance of understanding the resilience of rural households to shocks and poverty in developing countries, we consider resilience as a capacity and estimate a (latent) variable reflecting household’s resilience capacity, and we investigate how better resilience capacity can help rural households mitigate the negative impacts of shocks and improve their welfare. We use panel data of 3367 households from two emerging economies in Southeast Asia collected in three survey waves for empirical analyses. We use a generalized structural equation model to estimate the latent variable of household’s resilience capacity. Then, the results of fixed-effects estimations show that the lagged resilience capacity of rural households is significantly and negatively correlated with losses caused by different types of shocks. Moreover, the results of fixed-effects estimations with a control function approach indicate that an improvement in resilience capacity can prevent rural households from falling into poverty in absolute and multidimensional terms.

Keywords

    control function, fixed-effects estimation, GSEM, instrumental variable, multidimensional poverty, Panel data

ASJC Scopus subject areas

Cite this

Insights on household’s resilience to shocks and poverty: evidence from panel data for two emerging economies in Southeast Asia. / Do, Manh Hung; Nguyen, Trung Thanh; Grote, Ulrike.
In: Climate and Development, 01.01.2025.

Research output: Contribution to journalArticleResearchpeer review

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T2 - evidence from panel data for two emerging economies in Southeast Asia

AU - Do, Manh Hung

AU - Nguyen, Trung Thanh

AU - Grote, Ulrike

N1 - Publisher Copyright: © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

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