Local infrastructure, rural households' resilience capacity and poverty: evidence from panel data for Southeast Asia

Abstract

PurposeThe authors examine the association between infrastructure and a household's resilience capacity against shocks and the impacts of a household's resilience capacity on household consumption and poverty.Design/methodology/approachThe authors use panel data (collected in 2010, 2013 and 2016) from 1,698 households in Thailand and 1,701 households in Vietnam and employ an instrumental variable approach.FindingsThe authors find that transportation and information and communication technology (ICT) infrastructure help improve households' absorptive capacity in coping with shocks. Furthermore, this capacity can prevent households from reducing consumption and falling into poverty.Practical implicationsRural development policies should attend to transportation and ICT infrastructure.Originality/valueThe authors establish empirical evidence on the association between infrastructure and a household's resilience capacity and the impact of resilience capacity on poverty.