Structural transformation, growth, and inequality: Evidence from Viet Nam

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 681

Classification and Topics

• Classification: Wirtschaft ; Economic Development: Human Resources; Human Development; Income Distribution; Migration ; Other Economic Systems: Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty ; Microeconomic Analyses of Economic Development ; Economywide Country Studies: Asia including Middle East
• Subject: Economics ; Viet Nam

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Sarma, Vengadeshvaran ; Paul, Saumik ; Wan, Guanghua
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2017

Further information

• Handle: http://hdl.handle.net/10419/163188
• Last update: 10.03.2025, 11:43 AM CET