The Impact of Fiscal Decentralization on Poverty Reduction in Vietnam

Thu Hang Pham (), Huy Nhuong Bui (), Anh Duc Do (), Anh Duc Le (), Dieu Linh Ha () and Hai An Ngo ()

The Economics and Finance Letters, 2022, vol. 9, issue 2, 235-243

Abstract: In Vietnam, the issue of decentralization and implementation of decentralization have been a concern for a long time. This study focuses on the impact of fiscal decentralization on poverty reduction in Vietnam. Based on the provincial data with the use of the two-stage least squares method (2SLS), the estimation results obtained for the two periods show that fiscal decentralization had an impact on income/expenditure poverty reduction in the period from 2010–2015 and it had no significant effect on multidimensional poverty reduction in the period from 2016–2019. The study also found that economic growth, education and local welfare spending had an impact on poverty reduction in both stages, in which the impact of economic growth is relatively large, while the impact of welfare expenditures is relatively small in the locality. Improving infrastructure through information networks and increasing participation of people at the grassroots level have no impact on income/expenditure poverty reduction and multidimensional poverty in both the 2010–2015 and 2016–2019 periods.

Keywords: Fiscal decentralization; Poverty reduction; Multidimentional; Economic; 2SLS; Vietnam. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.conscientiabeam.com/index.php/29/article/view/3128/6920 (application/pdf)
https://archive.conscientiabeam.com/index.php/29/article/view/3128/7022 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pkp:teafle:v:9:y:2022:i:2:p:235-243:id:3128

Access Statistics for this article

More articles in The Economics and Finance Letters from Conscientia Beam
Bibliographic data for series maintained by Dim Michael ().