The determinants impact on poverty reduction in Vietnam

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The progress of poverty reduction in Vietnam determined by regions and the education level of the household members. During 2006-2014, the spillover of the poverty reduction polices in Vietnam was transmitted through accessibility to government preferential credit and public healthcare services. Ensuring that rural households were able to approach to immunization can improve their household’s wealth. The aim of the thesis was an assessment of determinants impacted on poverty in Vietnam, captured by the household characteristics, educational attainments, agricultural resources, and regions. The thesis also evaluated the effectiveness of the poverty reduction policy applied by the Vietnamese government. Subsequently, the interaction effects were used to investigate the role of women in the progress of poverty reduction and how the level of regional development influenced on poverty. The results showed that the probability of being poor decreased when households have favorable conditions in term of household characteristics, educational attainment, and regions. Accessibility to government preferential credits reduced the urban household’s poverty, and health care policies were more compatible with rural households. The yielding results of OLS model and probit models were consistent, guaranteed for robust estimation. The interaction effects showed the effectiveness of policy variables to the corresponding beneficiaries, but the proxies of government agriculture support were insignificant. Further research is recommended to use alternative proxies to have a better evaluation on the poverty reduction policies.
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