Productivity and public expenditure: a structural estimation for Vietnam’s provinces
Phu Nguyen-Van (),
Thi Kim Cuong Pham () and
Additional contact information
Duc-Anh Le: BETA, CNRS, INRA and Université de Strasbourg
Asia-Pacific Journal of Regional Science, 2019, vol. 3, issue 1, No 4, 95-120
Abstract We propose a structural approach to investigate total factor productivity (TFP) and economic growth of 58 provinces and municipalities of Vietnam (known as one of the most dynamic emerging economies in the last few years). The analysis is applied to the provincial data that are available to us for the period 2000–2007. TFP is composed of three components: an autonomous technological change, an observed deterministic part depending on external factors, and an unobserved stochastic part. Estimation results do not show any evidence regarding the impacts of national and local public spending on TFP and economic growth of Vietnam’s provinces. On the contrary, human capital and industry share (compared to shares of agriculture and services) significantly increase the provincial TFP, helping to explain the cross-province differences in terms of productivity. Finally, TFP of Vietnam’s provinces does not converge in the long run as it displays a polarization feature around two main groups of provinces, a large group with low TFP levels and a much smaller group with high TFP levels. This bipolar pattern of TFP distribution supports the competitiveness disparity among the Vietnam’s provinces.
Keywords: National public expenditure; Local public expenditure; Human capital; Sectoral shares; Total factor productivity; Vietnam’s provinces (search for similar items in EconPapers)
JEL-codes: C23 H50 H70 O40 P25 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s41685-018-0085-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
Working Paper: Productivity and public expenditure: a structural estimation for Vietnam’s provinces (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:apjors:v:3:y:2019:i:1:d:10.1007_s41685-018-0085-1
Ordering information: This journal article can be ordered from
https://www.springer ... cience/journal/41685
Access Statistics for this article
Asia-Pacific Journal of Regional Science is currently edited by Yoshiro Higano
More articles in Asia-Pacific Journal of Regional Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().