The Poverty and Welfare Effects of the 2008 Food Price Crisis in Vietnam: A Decomposition Analysis

Phung, Duc Tung and Hermann Waibel.

World Food Policy, Volumn 1 (2)


Using panel data from the Vietnam Household Living Standard Survey (VHLSS), this paper examines the impacts of food price increases on welfare and poverty in Vietnam. It is found that on average the rise in food prices increased household welfare by 7.5 percentage points. However, the percentage of households who gained from the increase in food prices is much smaller than of those who lost. The absolute number of people living in poverty increased by about 2.5 percentage points and the poverty gap deepened, but these effects varied greatly across regions. Producers’ supply reactions were moderate and on the demand side only poor consumers showed strong reaction.

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