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

Abstract:
Purpose
The 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/approach
The 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.

Findings
The 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 implications
Rural development policies should attend to transportation and ICT infrastructure.

Originality/value
The authors establish empirical evidence on the association between infrastructure and a household's resilience capacity and the impact of resilience capacity on poverty.