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The Linkages between Growth, Poverty and Inequality in Vietnam: An Empirical Analysis

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  • Hoi Quoc Le

    (Faculty of Economics, National Economics University, Vietnam)

Abstract

This paper examines how initial inequality and poverty rate are related to subsequent economic growth in the provincial level of Vietnam. The results show a robust negative relationship between initial poverty rate and subsequent economic growth. However, there is no link between initial inequality and subsequent economic growth. The results also show that lower inequality leads to lower poverty rate and poverty reduction could help to reduce inequality. Other determinants of inequality and poverty reduction include human capital, investment, GDP growth rate and trade openness. The main policy implication that emerges from this paper is that concentrating on poverty elimination will help us to build a more equitable society without sacrificing economic growth.

Suggested Citation

  • Hoi Quoc Le, 2010. "The Linkages between Growth, Poverty and Inequality in Vietnam: An Empirical Analysis," Working Papers 06, Development and Policies Research Center (DEPOCEN), Vietnam.
    • Handle: RePEc:dpc:wpaper:0610
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    Cited by:

    1. Amponsah, Mary & Agbola, Frank W. & Mahmood, Amir, 2023. "The relationship between poverty, income inequality and inclusive growth in Sub-Saharan Africa," Economic Modelling, Elsevier, vol. 126(C).
    2. Sabyasachi Tripathi, 2019. "Does higher level of education reduce poverty and increase inequality? Evidence from Urban India," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 22(3), pages 419-431.
    3. Sabyasachi Tripathi, 2013. "Is Urban Economic Growth Inclusive in India?," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 7(4), pages 507-539, November.
    4. Tripathi, Sabyasachi, 2012. "Does higher economic growth reduce poverty and increase inequality: Evidence from urban India," Working Papers 289, Institute for Social and Economic Change, Bangalore.

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