Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam

International aid agencies and almost all economists agree that economic growth is necessary for reducing poverty, yet some economists question whether it is sufficient for poverty reduction. Vietnam enjoyed rapid economic growth in the 1990s, but a modest increase in inequality during that decade r...

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Main Authors: Glewwe, Paul, Dang, Hai-Anh Hoang
Format: Journal Article
Language:EN
Published: 2012
Subjects:
Online Access:http://hdl.handle.net/10986/5784
id okr-10986-5784
recordtype oai_dc
spelling okr-10986-57842021-04-23T14:02:23Z Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam Glewwe, Paul Dang, Hai-Anh Hoang Measurement and Analysis of Poverty I320 Welfare and Poverty: Government Programs Provision and Effects of Welfare Programs I380 Economic Development: Human Resources Human Development Income Distribution Migration O150 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Socialist Systems and Transitional Economies: National Income, Product, and Expenditure Money Inflation P240 Socialist Institutions and Their Transitions: Consumer Economics Health Education and Training: Welfare, Income, Wealth, and Poverty P360 International aid agencies and almost all economists agree that economic growth is necessary for reducing poverty, yet some economists question whether it is sufficient for poverty reduction. Vietnam enjoyed rapid economic growth in the 1990s, but a modest increase in inequality during that decade raises the possibility that the poor in Vietnam benefited little from that growth. This article examines the extent to which Vietnam's economic growth has been "pro-poor," giving particular attention to two issues. The first is the appropriate comparison group. When comparing the poorest x% of the population at two points in time, should the poorest x% in the first time period be compared to the poorest x% in the second time period (some of whom were not the poorest x% in the first time period) or to the same people in the second time period (some of whom are no longer among the poorest x%)? The second is measurement error. Estimates of growth among the poorest x% of the population are likely to be biased if income or expenditure is measured with error. Household survey data show that Vietnam's growth has been relatively equally shared across poor and nonpoor groups. Indeed, comparisons of the same people over time indicate that per capita expenditures of the poor increased much more rapidly than those of the nonpoor, although failure to correct for measurement error exaggerates this result. 2012-03-30T07:34:32Z 2012-03-30T07:34:32Z 2011 Journal Article Economic Development and Cultural Change 00130079 http://hdl.handle.net/10986/5784 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Vietnam
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language EN
topic Measurement and Analysis of Poverty I320
Welfare and Poverty: Government Programs
Provision and Effects of Welfare Programs I380
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Measurement of Economic Growth
Aggregate Productivity
Cross-Country Output Convergence O470
Socialist Systems and Transitional Economies: National Income, Product, and Expenditure
Money
Inflation P240
Socialist Institutions and Their Transitions: Consumer Economics
Health
Education and Training: Welfare, Income, Wealth, and Poverty P360
spellingShingle Measurement and Analysis of Poverty I320
Welfare and Poverty: Government Programs
Provision and Effects of Welfare Programs I380
Economic Development: Human Resources
Human Development
Income Distribution
Migration O150
Measurement of Economic Growth
Aggregate Productivity
Cross-Country Output Convergence O470
Socialist Systems and Transitional Economies: National Income, Product, and Expenditure
Money
Inflation P240
Socialist Institutions and Their Transitions: Consumer Economics
Health
Education and Training: Welfare, Income, Wealth, and Poverty P360
Glewwe, Paul
Dang, Hai-Anh Hoang
Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam
geographic_facet Vietnam
relation http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description International aid agencies and almost all economists agree that economic growth is necessary for reducing poverty, yet some economists question whether it is sufficient for poverty reduction. Vietnam enjoyed rapid economic growth in the 1990s, but a modest increase in inequality during that decade raises the possibility that the poor in Vietnam benefited little from that growth. This article examines the extent to which Vietnam's economic growth has been "pro-poor," giving particular attention to two issues. The first is the appropriate comparison group. When comparing the poorest x% of the population at two points in time, should the poorest x% in the first time period be compared to the poorest x% in the second time period (some of whom were not the poorest x% in the first time period) or to the same people in the second time period (some of whom are no longer among the poorest x%)? The second is measurement error. Estimates of growth among the poorest x% of the population are likely to be biased if income or expenditure is measured with error. Household survey data show that Vietnam's growth has been relatively equally shared across poor and nonpoor groups. Indeed, comparisons of the same people over time indicate that per capita expenditures of the poor increased much more rapidly than those of the nonpoor, although failure to correct for measurement error exaggerates this result.
format Journal Article
author Glewwe, Paul
Dang, Hai-Anh Hoang
author_facet Glewwe, Paul
Dang, Hai-Anh Hoang
author_sort Glewwe, Paul
title Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam
title_short Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam
title_full Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam
title_fullStr Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam
title_full_unstemmed Was Vietnam's Economic Growth in the 1990s Pro-poor? An Analysis of Panel Data from Vietnam
title_sort was vietnam's economic growth in the 1990s pro-poor? an analysis of panel data from vietnam
publishDate 2012
url http://hdl.handle.net/10986/5784
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