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Impacts of infrastructure development on household welfare: an analysis for the case of Ngoc Hoi district, Kon Tum of Vietnam

The study assesses the effects of two community-level infrastructure development projects conducted in most villages in the border district Ngoc Hoi of Kon Tum province. | VNU Journal of Science, Economics and Business 25, No. 5E (2009) 64-72 INFORMATION Impacts of infrastructure development on household welfare: an analysis for the case of Ngoc Hoi district, Kon Tum of Vietnam Dr. Nguyen Huy Hoang* Institute for Southeast Asia Studies, Number 1, Lieu Giai, Ba Dinh, Hanoi, Vietnam Received 5 April 2009 Abstract. The study assesses the effects of two community-level infrastructure development projects conducted in most villages in the border district Ngoc Hoi of Kon Tum province. The analysis based on the combining household and community level survey data using the matched difference-in-difference (DD) method. Our results indicate that improvement in school and road infrastructure produce welfare gains for household at the village and country level as well. The implication from the study is to help government to consider which should be invested in order to boost economic growth and improve people welfare. 1. Introduction * areas in Kon Tum used to suffer severely from an increasing marginalization and impoverishment, worsening access to roads, information, energy, healthcare facilities, schools and markets. Degradation of health and education facilities was more clear in rural than in urban in Kon Tum province that has negatively affected people livelihood and welfare. Recognizing the importance of the infrastructure in economic development and household welfare improvement, the government of Vietnam recently paid more attention to improve infrastructure in the region and in Kon Tum province as well with the aim of giving more opportunities and chances for households in rural area to improve their general living condition. Empirical evidence shows that the improvement in infrastructure in Kon Tum is one of five provinces(1) of the Central Highlands (or Tay Nguyen) of Vietnam, characterized by a large share of population of ethnic minorities such as the people of Malayo Polynesian languages (Jarai, Ede) and the people of .