Regional growth disparities in Vietnam.

Abstract

Growth inequality is a pressing issue for Vietnam, one of the fastest-growing economies in Southeast Asia. This dissertation examines potential factors contributing to the regional economic growth disparities of Vietnam and their effects on the development process. The Extreme Bound Analysis approach was used for estimating growth equations to identify the robust determinants of the model. Using the data from 42 provinces in Vietnam from 1998 to 2003, the analysis confirms the importance of good economic governance, initial GDP level, human capital, and population. The analysis suggests that provincial governance such as State Sector Bias and Proactivity of Provincial Leadership are robust and economically important factors related to regional economic growth.