The Impact of Urbanization on Income Inequality: A Study in Vietnam

Minh Nguyen, Nguyen Dang Le and Pham Trung-Kien
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Nguyen Dang Le: Department of Financial Informatics and Statistics, Ministry of Finance, Ho Chi Minh City 700000, Vietnam
Pham Trung-Kien: Faculty of Economics, Binh Duong University, 504 Binh Duong Avenue, Binh Duong Province 590000, Vietnam

JRFM, 2019, vol. 12, issue 3, 1-14

Abstract: This paper explores the impact of urbanization on income inequality in Vietnam, using the regression estimation method with panel data including Driscoll and Kraay, and Pooled Mean Group. The research data cover 63 provinces in Vietnam from 2006 to 2016. The results show that in the long term, urbanization has an impact on reducing income inequality. In the short term, urbanization has a negligible impact on income inequality. The hypothesis of an inverted-U-shaped relationship between urbanization and income inequality is confirmed. The high school enrollment rate and the proportion of agriculture have an effect on reducing income inequality.

Keywords: urbanization; income inequality; Driscoll and Kraay; PMG (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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