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Annual Bank Conference on Development Economics, Tokyo, May 29-30, 2006. POVERTY REDUCTION IN VIET NAM: DISHARMONIES BEHIND THE IMPRESSIVE ACHIEVEMENTS. by Le Thuc Duc, Nguyen Thang and Vu Hoang Dat, Viet Nam Academy of Social Sciences, Ha Noi. The Contents.
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Annual Bank Conference on Development Economics, Tokyo, May 29-30, 2006 POVERTY REDUCTION IN VIET NAM: DISHARMONIES BEHIND THE IMPRESSIVE ACHIEVEMENTS by Le Thuc Duc, Nguyen Thang and Vu Hoang Dat, Viet Nam Academy of Social Sciences, Ha Noi
The Contents • Economic growth and poverty reduction • Inequality at glance • An identification of the poor • A regional consideration • Rural versus urban inequality • An econometric analysis of ethnic gap: why it may increase? • Conclusions
Determinants of provinces poverty rate Population distribution on expenditures
Why ethnic gap may increase? • The left hand side is the 2004’s per capita expenditures • Among the right hand side variables: “ethnicity” dummy, the “ethnicity” times “road to commune centre”, “ethnicity” times to other levels of education • Those serve to measure the difference in the returns on their education and in the effect of roads between the ethnic minority and majority groups
Concluding remarks • Even though the overall of poverty reduction in Viet Nam over 1993-2004 is really impressive, we see some cause for concern • Urban/rural gap in poverty has been clear. That gap can be decomposed into the difference in factors (such as education, roads, clinics, and market) and the difference in the marginal effects of the factors. The former is found significant, but the latter is weak and mixed
Concluding remarks (continue) • The ethnic gap consists of the difference in factors (education, roads,...), and the difference in marginal effects of the factors. Both are significant: the returns on education and the marginal benefit of roads all for the ethnic minorities are lower than that to Kinh&Chinese. • The differences in poverty between regions are mainly due to the differences in ratios of urban and population of ethnic groups. Other factors include condition for migration and therefore the remittances. • It is essential to safeguard inclusiveness of development. That requires a mobilization of development fund for the remote isolated localities and an efficient use of the development resources.