The Private Sector and Poverty Reduction

Raworth, Kate; Dhanarajan, Sumi; Wren‐Lewis, Liam

doi:10.2139/ssrn.2659225

Cited by 1 publication

(1 citation statement)

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“…One approach is private sector development (PSD) in countries in transition. It is well established that PSD not only increases employment opportunities and improves people's living standards (Hipsher, 2013; International Finance Corporation (IFC), 2013) but it also improves the welfare of the poor in other ways, such as diversifying goods and services at a lower cost, improving the quality of public goods and services (through increased tax revenue), and so on (Deaton, 2013; Jenkins, 2005; Organization for Economic and Co‐operation Development [OECD], 2007a; Raworth et al, 2008).…”

Section: Introductionmentioning

confidence: 99%

The private sector and multidimensional poverty reduction in Vietnam: A cross‐province panel data analysis

Tran

Doan

2022

Int J Soc Welfare

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This study examines the role of private sector development (PSD) in multidimensional poverty alleviation in Vietnam, using provincial panel data for the 2010-2019 period. PSD is measured as the proportion of the workforce in (i) all private firms, (ii) domestic private firms, and (iii) multinational firms, respectively. We use a two-step general method of moment estimator to account for unobservable heterogeneity, simultaneity, and the relationship between current provincial characteristics and past provincial poverty. We find that each percentage point increase in private sector employment contributes to a reduction of 0.30% and 0.31% in multidimensional poverty and monetary poverty, respectively. Notably, further analysis confirms that a similar effect is also found for both domestic private and multinational enterprises. In addition, our study finds that economic growth and educational attainment emerge as major factors mitigating multidimensional and unidimensional poverty, while income inequality increases both poverty measures.

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Section: Introductionmentioning

confidence: 99%