Private Interhousehold Transfers in Vietnam in the Early and Late 1990s

43 Pages Posted: 20 Apr 2016

See all articles by Donald Cox

Donald Cox

Boston College - Department of Economics

Date Written: June 2002

Abstract

Cox uses date from the 1992-93 and 1997-98 Vietnam Living Standards Survey (VLSS) to describe patterns of money transfers between households. Rapid economic growth during the 1990s did little to diminish the importance of private transfers in Vietnam. Private transfers are large and widespread in both surveys, and are much larger than public transfers. Private transfers appear to function like means-tested public transfers, flowing from better-off to worse-off households and providing old age support in retirement. Panel evidence suggests some hysteresis in private transfer patterns, but many households also changed from recipients to givers and vice versa between surveys. Changes in private transfers appear responsive to changes in household pre-transfer income, demographic changes, and life-course events. Transfer inflows rise upon retirement and widowhood, for example, and are positively associated with increases in health expenditures. It also appears that private transfer inflows increased for households affected by Typhoon Linda, which devastated Vietnam`s southernmost provinces in late 1997.

This paper is a product of Macroeconomics and Growth, Development Research Group. The study was funded by the Bank's Research Support Budget under the research project Economic Growth and Household Welfare: Policy Lessons from Vietnam. The author may be contacted at donald.cox@bc.edu.

Suggested Citation

Cox, Donald, Private Interhousehold Transfers in Vietnam in the Early and Late 1990s (June 2002). World Bank Policy Research Working Paper No. 2853. Available at SSRN: https://ssrn.com/abstract=636217

Donald Cox (Contact Author)

Boston College - Department of Economics ( email )

140 Commonwealth Avenue
Chestnut Hill, MA 02467
United States

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