An Exploration of the Causal Effects of Alcohol Consumption on Income: A Case Study of the Mekong River Delta of Vietnam

Abstract

Research on the relationship between alcohol consumption and economic outcomes is relatively underdeveloped. This paper presents an analysis of the nature of the relationship between alcohol consumption and income per capita in the rural Mekong River Delta of Vietnam. Applying a three-stage least squares estimator to the Vietnam Household Living Standard Survey data, this study finds that income per capita was detrimentally affected by alcohol use over the period 2010–2014. This research suggests that the Government should consider deploying more legal restrictions and reforms with respect to alcohol production and consumption