Convergence of Income across Central Provinces and Cities in Vietnam

Ly Hung

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Abstract: The paper asscesses the determinants of income convergence (absolute convergence) across provinces and central cities in Vietnam. The analysis methodology combines the theoretical model based on Solow (1956) with emprical evidence based on a dataset of 63 provinces and central cities over 2010-2019. The result shows that the initial income level, the difference on economic growth rate of each provinces and central cities compared with the leading province and the human capital jointly affect positively the convergence of income. Thus, the paper implies that the public policy for income convergence can focus on the human capital, one of three strategic breakthroughs for the next years.

Keywords: Convergence of Income; Neo-classical Growth Model; Economics of Regions and Provinces (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-cwa, nep-sea and nep-ure
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