Exposure to international trade and intra-household allocation in education and healthcare services: A Vietnam case study

Abstract

This study explores the effects of international trade on the intra-household allocation of healthcare and education expenditures for women in Vietnam. Employing data from the Vietnam Household Living Standards Survey (VHLSS) from 2004 to 2018, we utilize a household exposure-to-trade index, applying year-fixed effects regression models for aggregated data and Feasible Generalized Least Squares (FGLS) for panel data to address heteroscedasticity. Our analysis reveals that participation in international trade significantly increases the proportion of household expenditures on female education, especially when women are employed. However, the impact on female healthcare expenditures is heterogeneous, varying by income quintile and residential location. Specifically, trade exposure reduces the healthcare expenditure ratio for women in wealthier urban households but increases it in rural households with higher female employment. These findings suggest that international trade can be critical in improving household resource allocation, potentially mitigating gender disparities in developing countries. The study underscores the need for policies that promote female employment and support household dependents to enhance women's access to education and healthcare resources.