Structural and Rural Transformations and Poverty Reduction in Developing Asian Economies: An International Comparison Among China, the Philippines, and Vietnam

In order to contribute to the body of knowledge on sustainable poverty reduction by exploring the relationship between rural and structural transformations and rural poverty incidence in Asian developing countries, this paper selected China, the Philippines, and Vietnam as case studies. Based on a comparison with the provincial data from those three countries, both the graphic and regression analysis suggest that structural and rural transformations matter in rural poverty reduction in these three countries. There is strong evidence showing that raising the share of non-agricultural GDP and the share of rural off-farm employment significantly contributes to rural poverty reduction in all three countries. More importantly, with the expansion of the non-farm sectors in both urban and rural areas, high-value agricultural share has a statistically significant and negative correlation with rural poverty in China and Vietnam over time, while such a negative correlation is much weaker or even does not exist in the Philippines. This paper further concludes with several implications for policymakers to promote inclusive structural and rural transformations.