Impact of remittances on agricultural productivity, livelihood strategy and rice household income. a new evidence from rice household in rural Vietnam

Abstract

This study quantifies the impact of remittances from migrants on the livelihoods and income sources of rice-growing households using data from the Vietnam Access to Resources Household Survey in 2014 and 2016. Household income is measured by agricultural production efficiency and employment diversity. We formulate an index that demonstrates how well households engage with agriculture, serving as a proxy for agricultural production, while the non-farm sector is assessed through the diversity of non-farm workers. These indicators help capture the efficiency of agricultural production and measure the impact of remittances on the livelihoods and income sources of rice-farming households in rural Vietnam. The study shows an increase in the influx of remittances from migrants, coupled with a rise in the number of migrants both within and outside the country. Migration provides significant benefits, helping distribute income among households and providing capital for reinvestment in key manufacturing sectors, including non-agricultural ones. This fosters a variety of employment and livelihood strategies, thereby generating a greater source of income for households, especially in rural areas