The Effects of Natural Disasters on Household Income and Poverty in Rural Vietnam: An Analysis Using the Vietnam Household Living Standards Survey

Abstract

This study analyzes the relation among natural disasters, household income, and poverty using microeconometric methods. The effects of natural disasters on household income and poverty have received international attention from the United Nations, the World Bank, and similar organizations. In rural Vietnam, many people live in poverty, and Vietnam is one of the regions suffering from considerably great damage because of natural disasters. Further, we analyzed the effects of natural disasters on household income and poverty in rural Vietnam using Vietnam Household Living Standards Survey data. We conducted quantile regression to clarify the relation between natural disasters and household income. Therefore, we can confirm that droughts seriously affect all income classes, including those living in poverty. Therefore, we should consider countermeasures against droughts to alleviate poverty.