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Geography and economic growth in Vietnam

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  • Ngo, Thu Hien Laura
  • Santos, Paulo

Abstract

Using panel data from Vietnam, this paper estimates the determinants of consumption growth for the period 2002-04, using a microgrowth model. While controlling for individual heterogeneity, particular attention is devoted to the question of whether geography, broadly defined to include natural and man-made characteristics at the level of the commune, can be responsible for lower growth rates and, consequently, poverty persistence. We find very limited support for this hypothesis. Neither public nor private investment at commune levels seem to have, per se, a significant effect on growth. However, local poverty rate does have an important, nonlinear, relation with growth rate of consumption at individual level, suggesting the importance of local externalities in this process. The policy implications of this finding are discussed.

Suggested Citation

  • Ngo, Thu Hien Laura & Santos, Paulo, 2012. "Geography and economic growth in Vietnam," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126491, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126491
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    References listed on IDEAS

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    1. Elbers, Chris & Fujii, Tomoki & Lanjouw, Peter & Ozler, Berk & Yin, Wesley, 2007. "Poverty alleviation through geographic targeting: How much does disaggregation help?," Journal of Development Economics, Elsevier, vol. 83(1), pages 198-213, May.
    2. White, Howard & Masset, Edoardo, 2002. "Child poverty in Vietnam: using adult equivalence scales to estimate income-poverty for different age groups," MPRA Paper 777, University Library of Munich, Germany.
    3. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 407-437.
    4. Dercon, Stefan, 2004. "Growth and shocks: evidence from rural Ethiopia," Journal of Development Economics, Elsevier, vol. 74(2), pages 309-329, August.
    5. Máximo Torero & Javier Escobal, 2000. "Does Geography Explain Differences in Economic Growth in Peru?," Research Department Publications 3103, Inter-American Development Bank, Research Department.
    6. Liu, Zhenjuan & Stengos, Thanasis, 1999. "Non-linearities in Cross-Country Growth Regressions: A Semiparametric Approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 527-538, Sept.-Oct.
    7. Bloom, David E & Canning, David & Sevilla, Jaypee, 2003. "Geography and Poverty Traps," Journal of Economic Growth, Springer, vol. 8(4), pages 355-378, December.
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    Keywords

    International Development;

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