Provincial divergence and sub-group convergence in Vietnam’s GDP per capita

Vu, Xuan-Binh (Benjamin) ORCID: https://orcid.org/0000-0003-0238-002X and Hoang, Viet-Ngu and Nghiem, Son (2018) Provincial divergence and sub-group convergence in Vietnam’s GDP per capita. Journal of Economic Research, 23. pp. 81-107. ISSN 1226-4261


Abstract

In the Vietnamese context, this paper is the first application of Phillips & Sul’s (2007, 2009)’s approach to the examination of inequality in GDP per capita in a study of 61 Vietnamese provinces covering the period 1990-2011. The results show that provincial levels of GDP per capita diverged over the study period, and all provinces could be formed into five convergence sub-groups. However, the result of σ-convergence shows that there was a clear break in the trend around 2004 when it reversed itself. Further insights into the factors underlying the switch from divergence to convergence around 2004 were gained through an analysis of provincial-level data for foreign direct investment, public investment, and central provincial budgetary transfers. Estimates from an ordered probit model suggest that foreign direct investment, domestic investment, and transfers from central to provincial governments have played an important role in forming the sub-groups. Based on these results, several policy implications are discussed.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: No Faculty
Faculty/School / Institute/Centre: No Faculty
Date Deposited: 04 Aug 2021 01:39
Last Modified: 01 Sep 2021 01:06
Uncontrolled Keywords: provincial divergence, sub-group convergence, foreign direct investment, domestic investment, transfers from central to provincial governments, Vietnam
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140299 Applied Economics not elsewhere classified
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380199 Applied economics not elsewhere classified
URI: http://eprints.usq.edu.au/id/eprint/43007

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