AN EXPLORATION OF THE RELATIONSHIP BETWEEN THE QUALITY OF PUBLIC GOVERNANCE AND INCOME INEQUALITY: A CASE STUDY OF VIETNAM

Phuc van Phan ()
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Phuc van Phan: School of Political Science, Can Tho University, Campus 2, 3/2 Street, Can Tho, Vietnam

The Singapore Economic Review (SER), 2025, vol. 70, issue 01, 211-225

Abstract: Public governance and income inequality relationship is complex and debatable. This paper examines the extent to which the quality of local governance affects inequality in Vietnam spanning the 2006–2016 period. I apply a generalized method of moments (GMM) estimators to a dynamic panel data extracted from the Vietnam’s provincial competitiveness index and the Vietnam household living standard surveys. The findings are that there is a positive inequality — corruption link but no statistically significant correlation coefficient between the overall level of governance and income disparity. The study, therefore, suggests that the Vietnamese Government at all levels should consider both more effective legal practices and economic low-cost solutions to mitigate corruption.

Keywords: Public governance; inequality; Vietnam; provincial competitiveness index (search for similar items in EconPapers)
JEL-codes: C23 D31 D63 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1142/S0217590821500703

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