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Socio-economic determinants of household income among ethnic minorities in the North-West mountains, Vietnam

This paper investigates both commune and household determinants of household income among ethnic minorities in the North-West Mountains – the poorest region of Vietnam. The findings show that the vast majority of the sample households heavily depend on agricultural activities. | Tran Quang Tuyen Socio-Economic Determinants of Household Income among Ethnic Minorities in the North-West Mountains, Vietnam Croatian Economic Survey : Vol. 17 : No. 1 : June 2015 : pp. 139-159 Socio-Economic Determinants of Household Income among Ethnic Minorities in the North-West Mountains, Vietnam Tran Quang Tuyen Faculty of Political Economy, VNU University of Economics and Business, Hanoi, Vietnam tuyentq@vnu.edu.vn CroEconSur Vol. 17 No. 1 June 2015 pp. 139-159 Received: January 9, 2015 Accepted: June 16, 2015 Research Article doi:10.15179/ces.17.1.5 Abstract This paper investigates both commune and household determinants of household income among ethnic minorities in the North-West Mountains – the poorest region of Vietnam. The findings show that the vast majority of the sample households heavily depend on agricultural activities. Factors affecting household income per capita are examined using multiple regression models and the findings confirm the important role of education, non-farm employment and fixed assets in improving household income. In addition, some commune variables such as the presence of the means of transportation, post offices and non-farm job opportunities are found to have an increasing impact on household income. The findings suggest that policies for poverty reduction should aim at both commune and household levels. Policies that focus on improving the access 139 Tran Quang Tuyen Socio-Economic Determinants of Household Income among Ethnic Minorities in the North-West Mountains, Vietnam Croatian Economic Survey : Vol. 17 : No. 1 : June 2015 : pp. 139-159 of ethnic minorities to education and non-farm employment are expected to be effective ways of enhancing their income. Keywords: ethnic minorities, non-farm participation, household income, North-West Mountains JEL classification: I32, O12, J15 1 Introduction Vietnam has 54 ethnic groups, of whom the Kinh (Viet) are by far the biggest group, accounting for nearly 74 million .