Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283449 
Year of Publication: 
2023
Series/Report no.: 
TVSEP Working Paper No. WP-032
Publisher: 
Leibniz Universität Hannover, Thailand Vietnam Socio Economic Panel (TVSEP), Hannover
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 commercialization on the capability of rural households to accumulate assets and on 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 commercialization has a positive effect on the accumulation of assets and reduces multidimensional and structural poverty over time. However, the effect is not homogeneous and larger for households not mainly engaged in rice commercialization. This suggests that commercialization can be a path out of poverty, especially if policy makers move towards utilizing other crops instead of rice.
Subjects: 
Asset growth
Asset-based income
Commercialization
Fixed effects
Instrumental variable
Control function
JEL: 
C21
I32
Q12
Q13
Document Type: 
Working Paper

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