DETERMINANTS OF INCOME DIVERSIFICATION AMONG HOUSEHOLDS IN VIETNAM’S BORDER REGIONS

Abstract

ABSTRACT

Using survey data from 300 households in Vietnam’s border areas, this study analyzes the determinants of income diversification among households. Ordinary Least Squares (OLS) regression estimates with robust standard errors indicate that larger households with stronger economic capacity and those living in areas with better infrastructure tend to have higher proportions of non-farm income. Moreover, there are significant regional differences in the degree of income diversification. Notably, dynamic local governance is positively associated with income diversification, whereas livelihood support policies show a negative correlation. Based on these findings, the study proposes several policy implications to promote income diversification for residents in Vietnam’s land border regions in the coming years.