Are Returns to Investment Lower for the Poor? Human and Physical Capital Interactions in Rural Vietnam
Author(s)
van de Walle, DominiqueKeywords
credit marketsexpenditures
incomes
physical capacity
increasing returns
gender
labor productivity
employment
oil
elasticity
extension services
marginal products
transport
economic growth
crops
irrigation development
educational level
production functions
educational equalization
decentralization
economic development
policy research
social services
public health
labor inputs
educational indicators
inequity
development projects
livestock
planned economy
wages
NGOs
demographic indicators
informal sector
total revenue
health outcomes
nutrition
market reforms
housing
growth theories
market mechanism
market failures
poverty incidence
income generation
savings
development economics
farms
wealth
productivity
agricultural extension
agriculture
equipment
insurance
accounting
living standards
capital markets
rural development
marginal value
agricultural cooperatives
consumption expenditures
comparative advantage
income
investment returns
extension
variable costs
demographics
livelihoods
water supply
labor markets
time series
social development
equilibrium
economics
safety nets
farmers
agricultural productivity
human capital
labor supply
new technologies
marginal product
poverty line
agricultural production
elasticities
marginal benefits
health care
production costs
migration
Full record
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http://hdl.handle.net/10986/21367Abstract
If the marginal gains from investment in physical capital depend positively on knowledge, but a household cannot hire skilled labor to compensate for low skills, then even if it has access to credit, the household will achieve lower returns than an educated household. If, as is common, the income-poor are less educated because of failures in the credit market, and because they live in areas where there is less access to schooling, then the poor will also have lower returns on investments. The author tests this argument for the case of irrigation infrastructure in Vietnam. She asks how a household's education level, and demographic characteristics influence the gains to household income from irrigating previously unirrigated land. The next marginal benefit of irrigation increases strongly with the education of a household. The results suggest that unless disparities in education are addressed, market-oriented reforms will generate inequitable agricultural growth in Vietnam.Date
2000-08Type
Publications & ResearchIdentifier
oai:openknowledge.worldbank.org:10986/21367http://hdl.handle.net/10986/21367
Copyright/License
CC BY 3.0 IGOCollections
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