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    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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    Citable URI
    http://hdl.handle.net/11540/8757
    Metadata
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    adbi-wp681.pdf (3.042Mb)
    Author
    Sarma, Vengadeshvaran
    Paul, Saumik
    Wan, Guanghua
    Theme
    Development
    Industry
    Labor Migration
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise