Convergence of Economic Growth across Central Provinces and Cities in Vietnam

Ly Hung

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Abstract: The paper examines the determinants of convergence in economic growth (relative convergence) across provinces in Vietnam. The methodology combines the endogenous growth theory, analyzed in Aghion, Howitt và Mayer-Foulkes (2005), with empirical evidence on a data sample of 63 provinces over 2010-2019. The result shows that only with high-quality human capital, the economic growth rate raises for a higher proximity to world technology frontier, or the convergence of economic growth happens. Among the central cities, Hai Phong has an outstanding growth rate by exploring the backwardness advantage, based on the combination of high proximity to world technology frontier with improvement of institutional quality. The result suggests that the human capital should receive highest investment on the policy architecture in the future.

Keywords: Convergence of Economic Growth; Economic of Region and Provinces; Cross-Section Regression (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-cwa, nep-gro, nep-sea and nep-ure
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