Determinants of income diversification and its effects on rural household income in Vietnam

Abstract

This article is aimed at examining determinants of income diversification among rural households in Vietnam and the impacts of diversification on household income. The Poisson and Tobit regression methods were applied. The data for this empirical study was detached from Vietnam Household Living Standard Surveys (VHLSS) conducted from 2002 to 2010. The regression results showed that socio-economic factors have strong influence on household income diversification in the rural areas, and, in turn, income diversification has positive impact on household income growth. It implied that income diversification is an important strategy to improve househo