tailieunhanh - Impact of subsidy schemes on the economic well-being of households in Vietnam

Impact of subsidy schemes on the economic well-being of households in Vietnam. This paper uses the Propensity Score Matching method (PSM) to determine the criteria of eligibility for production and income subsidies and the Difference-in-Difference method (DID) to evaluate the impact of these policies on households’ economic well-being in Vietnam. | Journal of Economics and Development, , , April 2017, pp. 39-50 ISSN 1859 0020 Impact of Subsidy Schemes on the Economic Well-Being of Households in Vietnam Nguyen Hoang Oanh National Economics University, Vietnam Email: Nguyen Hong Ngoc National Economics University, Vietnam Email: ngocnguyenhong94@ Ho Đinh Bao National Economics University, Vietnam Email: hodinhbao@ Abstract This paper uses the Propensity Score Matching method (PSM) to determine the criteria of eligibility for production and income subsidies and the Difference-in-Difference method (DID) to evaluate the impact of these policies on households’ economic well-being in Vietnam. The empirical results indicate that though these policies have not contributed to a clear economic well-being improvement of the participating households, their impacts tend to move in a positive direction. It should be noted that though these policies do not make the income/expenditure of the participating households increase, they help increase the income component from agricultural production significantly, especially for the group receiving production subsidies, and at the same time increase spending on durable goods and health care services in comparison with nonparticipating households. Keywords: Difference-in-difference (DID); Propensity Score Matching (PSM); income subsidy; production subsidy; households’ economic well-being. Journal of Economics and Development 39 Vol. 19, , April 2017 1. Introduction periods in order to find short-term and medium-term effects of these types of subsidy. The results of these subsidy policies are assessed by comparing the change in economic well-being indicators (income/expenditure) of the participating households with the non-participating ones. During the last few decades, Vietnam has achieved enormous economic and social success. The poverty rate has fallen sharply from in 1993 to just in 2015. However, the .

• Kinh tế học
• Impact of subsidy schemes
• The economic well being
• Households in Vietnam
• Production and income subsidies
• The Difference in Difference method