Sinh viên không điên bât cử thông tin gì liên quan đến người thực hiện và người hướng dần trong đê tài. BỘ GIÁO DỤC VÀ ĐÀO TẠO DẠI HỌC KINH TẾ THÀNH PHỐ HÒ CHÍ MINH BẢO CÁO TỎNG KẼT ĐÊ TÀI NGHIÊN cứu KHOA HỌC THAM GIA XÉT GIÃI THƯỚNG ‘’NHÀ NGHIÊN CỨU TRÉ UEH” NÃM 2024 IMPACT OF REMITTANCES ON AGRICULTURAL PRODUCTIVITY, LIVELIHOOD STRATEGY AND RICE HOUSEHOLD INCOME A new evidence from rice household in rural Vietnam Thuộc nhóm chuyên ngành : Kinh tê TP. Hồ Chí Minh, tháng 2/2024 I IMPACT OF REMITTANCES ON AGRICULTURAL PRODUCTIVITY, LIVELIHOOD STRATEGY AND RICE HOUSEHOLD INCOME A new evidence from rice household in rural Vietnam ABSTRACT This study quantifies the impact of remittances from migrants on the livelihoods and income sources of rice-growing households using data from the Vietnam Access to Resources Household Survey in 2014 and 2016. Household income is measured by agricultural production efficiency and employment diversity.
We formulate an index that demonstrates how well households engage with agriculture, serving as a proxy for agricultural production, while the non-farm sector is assessed through the diversity of non-farm workers. These indicators help capture the efficiency of agricultural production and measure the impact of remittances on the livelihoods and income sources of rice-farming households in rural Vietnam. The study shows an increase in the influx of remittances from migrants, coupled with a rise in the number of migrants both within and outside the country. Migration provides significant benefits, helping distribute income among households and providing capital for reinvestment in key manufacturing sectors, including non-agricultural ones.
This fosters a variety of employment and livelihood strategies, thereby generating a greater source of income for households, especially in rural areas. Keywords: Remittances, Migration, Income, Agriculture, Households, Vietnam. II TABLE OF CONTENTS ABSTRACT. I LIST OF TABLES.
IV LIST OF FIGURES. IV LIST OF ABBREVIATIONS.2 Reasons OF Choosing THE Topic------------------------------------------------------- 2 1.5 Objects and scope of Research------------------------------------------------------- 3 1.6 Contributions of the Research------------------------------------------------------ 3 1.7 Structure of the Research------------------------------------------------------------ 4 2 LITERATURE RE VIEw.4 Research GAP-------------------------------------------------------------------------------- 8 3 METHODOLOGY.1 Measuring the share of rice income from agricultural production —8 3. 11 5 RESULTS AND DISCUSSION.2 Impact of Remittances on Agricultural productivity--------------------- 18 in 5.3 Impact of Remittances on Non-Agricultural productivity------------- 24 5.4 Impact of Remittances on Rice income and Other income----------------- 26 6 CONCLUSION AND POLICY IMPLICATIONS.30 APPENDIX: ADDITIONAL STATISTICS AND RESULTS. 36 IV LIST OF TABLES Table 1.
List of variables------------------------------------------------------------------------- 12 Table 2. Descriptive statistics------------------------------------------------------------------- 14 Table 3. Impact of remittances on agricultural productivity------------------------------ 20 Table 4. Impact of remittances on proportion of rice income----------------------------- 23 Table 5.
Impact of incoming remittances on non-farm productivity--------------------- 25 Table 6. Impact of remittances on rice and other income---------------------------------- 27 Table 7. VIF test------------------------------------------------------------------------------------ 36 Table 8. Correlation matrix----------------------------------------------------------------------- 37 LIST OF FIGURES Figure 1.
Theoretical framework----------------------------------------------------------------- 6 Figure 2. Chart of Agricultural labor and household size depend on education level-15 Figure 3. Chart of rice price dispersion to rice income------------------------------------ 16 Figure 4. Percentage chart of income from rice and other income of households by number of household members------------------------------------------------------------------ 17 Figure 5.
Chart of dispersion of rice income and other income by non-agricultural spread. 18 V LIST OF ABBREVIATIONS CEIM Central Institute for Economic Management GDP Gross Domestic Product GSO General Statistics Office ILSSA Institute of Labour Science and Social Affairs MoLISA Ministry of Labour - Invalids and Social Affairs MPI Ministry of Planning and Investment VARHS Vietnam Access to Resources Household Survey VHLSS Vietnam Household Living Standard Survey VIF Variance Inflation Factor VLSS Vietnam Living Standards Survey 1 1 INTRODUCTION 1.1 Rationale Migration is an inevitability and a driving force of the country's socio-economic development (Borjas, 1989; Pischke, 1992; Winter-Ebmer, 1994) and migrant remittances are among the factors that help households grow economically (Brown, 2006; De Haas, 2007; Maimbo & Ratha, 2005; Matuzeviciute & Butkus, 2016). The increasing inflow of remittances (The World Bank, 2013) is why this topic has attracted the interest of researchers and policy makers. To implement these articles requires their understanding of the impact on economic growth in the long run, thereby contributing to the economic development of both the world in general and the national economy in particular.
Most previous research on the topic of remittances from migrants has focused on three main issues. The first group focuses on the direct impact of remittances on income distribution and individual happiness (Adams Jr, 1996; Barham & Boucher, 1998; Milanovic, 1987). The second group focuses on the impact of remittances on international trade and a country's economic balance (Farzanegan & Hassan, 2020; Kirwan & Holden, 1986; Regmi, 2022). The third group examined the impact of remittances on national economic growth (Barajas et al., 2009; Catrinescu et al.
Each research group brings certain benefits to scientific research, especially policy makers, contributing to the growth of the economy in general. Although there are many scientific papers investigating different aspects of the relationship between remittances and the distribution of income (Airola, 2007; Milanovic, 1987), especially households earning income from rice cultivation (Manivong et al., 2014; Nguyen et al., 2019; Paris et al. However, the authors pay little attention to the investment factor in education to engage in productive activities other than the household's main production or daily expenses including food, farm (input and payment of wage labor) and the education of children. So we focus on the impact of remittances on the main source of income of households, in addition to the impact on other sources of income, while also looking at expenses such as food, household labor, etc.
to ensure inclusivity of all actual household expenses.2 Reasons of Choosing the Topic Vietnam is an apt venue to consider the relationship between migration and the agricultural economy, namely agricultural production efficiency, livelihoods and sources of income of rural households. Although Vietnam’s economy has been growing rapidly since the late 1980s at an average annual rate, the Gross Domestic Product (GDP) growth rate was around 7% between 2004 and 2014 (Do et al., 2019; Tran et al., 2019), agriculture remains an important economic sector. However, agricultural production is being challenged by some pressures (Nguyen, 2012). About 40% of Vietnam's total labor force (working-age population) works in the agricultural sector, but produces less than 20% of national GDP (Huy & Nguyen, 2019; Nguyen et al.
However, the share of agriculture in GDP decreased, while the share of the industrial and service sectors in GDP increased rapidly. Thus, the demand for labor in urban centers is increasing (Cuong & Mont, 2012; Le el al. This led to a significant increase in the number of people migrating from rural to urban areas, mainly to Hanoi Capital, Ho Chi Minh City and industrial zones, developed regions of Binh Duong and Dong Nai provinces (Amare & Hohfeld, 2016). In addition, Vietnam is a country in transition with large internal flows as well as international migration.
According to the 2009 Population and Housing Census, about 8.5% of Vietnam's population changed residence during 2004-2009. There are about 3.2 million Vietnamese living abroad (Cuong & Mont, 2012). These people send large amounts of international remittances to Vietnam. In 2014, total remittances to Vietnam reached 11 billion USD, accounting for about 6% of total GDP (Hung, 2022).
Therefore, sending migrants to urban centers and developed countries has become a livelihood strategy for rural households in Vietnam. While migration can contribute to addressing overcapacity in rural areas and increasing remittances to households sending migrants, it is also useful to examine whether and to what extent this movement has an impact on livelihoods and sources of income in rural areas.3 Research Questions 3 Do remittances from migrants impact agricultural production efficiency, livelihood strategics and incomes of rice households in rural Vietnam? Will remittances from migrants change the income from rice and other incomes of rice households in rural Vietnam? 1.4 Research Methodology To address this issue, our paper incorporates household data extracted from the Vietnam Access to Resources Household Survey (VARHS). We formulate two indicators to show how well households are productive with agriculture as two representatives of agricultural production, while non-agriculture is viewed through the diversity of non farm workers. The fixed-effect model is then used for the table data to estimate the impact of migration and remittances from migrants on agricultural productivity and income in rural Vietnam through developed indicators.5 Objects and range of Research This study uses the 2014 and 2016 Vietnam Access to Resources Household Survey (VARHS).
To compare 2016 with 2014, we used a table dataset of 2,668 households, so that their data was available for these two years.6 Contributions of the Research Research makes a unique contribution in three ways. First, this study uses more up-to- date household survey data (Vietnam Access to Resources Household Survey 2014 and 2016) to analyze patterns and impacts of migration and remittances. Migration and remittances are dynamic and change significantly over time in Vietnam. Second, this study looked at the impact of both migration and remittances, whereas most previous studies have mainly focused on migration or remittances.
Third, this study will examine the impact of migration and remittances on household outcomes including agricultural productivity, livelihoods and incomes. By examining the impact on a range of household outcomes, this study is expected to provide an in-depth understanding of the mechanisms through which remittances from migrants may affect agricultural production efficiency and incomes of households with migrants.7 Structure of the Research The rest of this research paper is organized as follows. Section 2 examines the analytical framework for the link between remittances and agricultural production efficiency and household income sources, including gaps from previous studies. Sections 3 and 4 discuss empirical strategies and data description, respectively, while Section 5 presents the results and findings.
The last section gives policy implications and comments conclusions.1 Concepts & Theories Migration is a permanent or semi-permanent change of residence and is not limited to distance traveled (Lee, 1966). Besides, the widely used concept of migration is also not binding on voluntary or involuntary nature, or international migration and internal migration. Previous research has shown that migration occurs based on certain rules (Cadwalladcr, 1992; King, 2013; Ravenstein, 1889) is acted upon by 2 groups of factors: push factors and pull factors (Lee, 1966). Some of the factors that pushed Lee (1966) were poverty, unemployment or political instability.
In addition, there are factors such as job opportunities, higher wages or better living conditions in the destination area. More importantly, many previous studies have shown links between migration and economic development in both where migration goes and where migration arrives (Borjas, 1989; LaLonde & Topel, 1997; Massey, 1989). There are many mechanisms of interaction between the two, including remittance flows (De Haas, 2010). Remittances are a portion of migrants' income sent home in the form of cash or goods to support their families (Ratha, 2017).
Taylor (1999) suggests that remittances are not merely a byproduct but a central element of migration. Remittances are a form of investment in the family's community, providing financing, significantly improving the income for those households (De Haas, 2010; Stark & Bloom, 1985; Taylor, 1999). In 5 this paper, we focus on clarifying the impact of remittances on agricultural and non- agricultural production in rural households in Vietnam. Firstly, the link between household remittances and agricultural economics has been shown in many previous studies.
Specifically, the authors found that migration enhances agricultural productivity, as remittances from migrants can be channeled into investments in farm equipment, livestock, and other agricultural inputs (Li et al., 2013; Parida et al., 2015; Rozelle et al., 1999; Taylor & Lopez-Feldman, 2010). Moreover, rice agriculture plays a very pivotal role in Vietnam's agricultural economy with 7.2 million hectares of planted land (General Statistics Office of Vietnam, 2020). However, some previous studies conducted in Vietnam have indicated that remittances can reduce agricultural labor productivity, resulting in a decline in agricultural production activities of households (Nguyen et al. Therefore, the relationship between remittances and rice agriculture remains somewhat unclear.