The impact of natural disaster on multidimensional poverty of rural households in Vietnam: The regulating role of social assistance

Abstract

This study investigates the impact of natural disasters on multidimensional poverty in rural Vietnam and examines the moderating role of social assistance in mitigating these effects. Utilizing data from the Vietnam Household Living Standards Survey in 2016 and 2018, we employ a probit model to analyze the differential impacts of droughts, floods, and storms on various dimensions of poverty, including income, education, health, housing, and access to information. Our findings reveal that droughts have a more pronounced and lasting impact on overall multidimensional poverty compared to floods and storms. Furthermore, we demonstrate the moderating effect of social assistance in alleviating the adverse consequences of floods on multiple aspects of household well‐being. This study contributes to the literature by adopting a comprehensive, multidimensional approach to poverty and highlighting the critical role of social assistance in building resilience to natural disasters. Our results underscore the need for targeted, context‐specific poverty alleviation strategies that address the multifaceted nature of deprivation and the differential impacts of natural disasters on rural households. These findings have significant implications for policymakers and practitioners in designing effective interventions to promote sustainable development and enhance the well‐being of vulnerable communities in the face of increasing climate‐related challenges.