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27/07/2022

Poverty Dynamics: Evidence from Rural Vietnam

This paper implements the conceptual framework of Carter and Barrett (2001, 2006) that identifies the link between assets and household well-being transitions. I employ household panel data from Vietnam collected in two years 2007 and 2008 as foreign investment boomed and inflation rose. Poverty dynamics are modeled using changes in consumption expenditure and poverty transition models. The transition effect is captured by a set of variables such as household assets (including household and individual characteristics, household dynamics and its social assets) and shocks. The result shows that changes in household assets and shocks affect poverty transition.