The politics of the United States-China-Vietnam Triangle in the 21st Century -- Foreword -- Executive Summary -- Changing Perceptions of Vietnam's Strategic Importance -- Vietnam and the Balance of Power Game -- Vietnam Between China and the United States -- Regional Implications of the Politics of U.S.-China-Vietnam Triangular Relations.
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Abstract. In this paper, we examine the economic policies that might allow a developing rural economy to escape from the poverty trap characterized by a subsistence level of per capita consumption in the long run. In our model where labour is combined to land available in fixed quantity to produce a homogeneous good, saving could be made through only having children, the number of which is an endogenous decision. We provide conditions under which the economy runs into a poverty trap, and proceed to analyse the relevant policies in this case. We demonstrate that an escape from this poverty trap is possible through a suitable technology transfer, or an appropriate child‐rearing tax, but not with a foreign manufacturing sector, which increases only temporarily the labour income in this rural economy. JEL classification: J11, O11, O40