Spatial spillover effect of the enterprise sector on local residents’ income in Vietnam

Nhan Thanh Trinh (), Dohyeong Choi () and Seongwoo Lee ()
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Nhan Thanh Trinh: Seoul National University
Dohyeong Choi: Seoul National University
Seongwoo Lee: Seoul National University

Economia e Politica Industriale: Journal of Industrial and Business Economics, 2024, vol. 51, issue 4, No 10, 1067-1118

Abstract: Abstract This study uses a panel data set from all 63 provinces in Vietnam and spatial regression models to investigate the spatial spillover effect of the enterprise sector on local residents’ income. The results show that expanding the enterprise sector can directly and indirectly increase local income. Although this spillover effect is positive and significant, it is smaller than the direct effect and gradually diminishes when the distance between provinces increases. For example, the estimation results applying the spatial Durbin model holding other variables constant show that a 10% increase in the enterprise capital volume in Ho Chi Minh City can raise local total income in this city, and first- and second-order neighbours by 0.53%, 0.22%, and 0.17%, respectively. This study provides novel evidence on the spatial spillover effect of the enterprise sector on local incomes using spatial econometric models. The findings offer valuable information for policymakers in planning enterprise sector development to improve local residents’ income in Vietnam.

Keywords: Enterprise sector; Local income; Spatial regression; Spillover effects; Vietnam (search for similar items in EconPapers)
JEL-codes: O10 P25 R10 R12 R58 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s40812-024-00319-y

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