Structural Transformation, Growth, and Inequality: Evidence from Vietnam
Sarma, Vengadeshvaran; Paul, Saumik; Wan, Guanghua | March 2017
Abstract
We examine whether structural transformation leads to growth and income inequality in Viet Nam. Using three rounds of the Vietnam Household Living Standards Survey (2002, 2006, and 2010), we estimate re–centered influence functions to construct a decomposition analysis. Our results indicate that Viet Nam continues to experience sustained structural transformation and growth, but this growth is heterogeneous across regions. The growth exhibits pro–rich gains, with returns to agriculture and manufacturing increasing only for the top 10 to 20th percentiles. We also find that such growth increases income inequality in Viet Nam, and change in income inequality is heterogeneous across regions. Differences in growth and income inequality are driven by differences in the rate of industrialisation across regions and by structural effects such as access to seaports. For a more inclusive growth, access to non-farm activities may need to be increased for households that are not in areas with high levels of structural transformation.
Citation
Sarma, Vengadeshvaran; Paul, Saumik; Wan, Guanghua. 2017. Structural Transformation, Growth, and Inequality: Evidence from Vietnam. © Asian Development Bank Institute. http://hdl.handle.net/11540/8757.Keywords
Aid And Development
Asian Development Bank
Comprehensive Development Framework
Development Cooperation
Development Management
Development Planning
Development Strategies
Development In East Asia
Development Planning
Development Research
Green revolution
Commerce and Industry
Intra-Industry Trade
Large Scale Industry
Labor
Rural planning
Aid coordination
Industrial projects
Infrastructure projects
Natural resources policy
Educational development
Development strategy
Development models
Economic development
Industrialization
Industrial Economics
Industrial Development
Industrial Policy
Weaving
Textiles
Textile Workers
Wool Industry
Silk Industry
Small Scale Industry
Medium Scale Industry
Local Industry
Export Oriented Industries
Shoe Industry
Clothing
Hosiery Industry
Fur Industry
Leather Industry
Income Distribution
Demographic Indicators
Communication in rural development
Communication in community development
Economic development projects
Development banks
Economic forecasting
Environmental auditing
Cumulative effects assessment
Human rights and globalization
Market share
Labor
Work clothes industry
Women's clothing industry
Children's clothing industry
Garment industry
Apparel industry
Footwear industry
Social change
Social accounting
Inequality of income
Economic growth
Quality of Life
Green Revolution
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