Fiscal decentralization and local budget deficits in Viet Nam: An empirical analysis

Arbeitspapier

Since 1975, Viet Nam has gradually decentralized more fiscal responsibilities to local authorities. This study has two objectives: (i) to take stock of the current institutional framework for intergovernmental fiscal relations in Viet Nam, and (ii) to empirically assess the debt sustainability of local governments in Viet Nam. The empirical analysis uses two estimation methods: (i) fully modified ordinary least squares (OLS) to estimate the long-term correlations between co-integration equations, including vectors of co-integration variables, and stochastic regressor innovations; and (ii) fiscal reaction equations at the provincial level, based upon the Bohn (2008) model. The empirical results suggest that deficit levels are generally sustainable at the local level.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ADBI Working Paper ; No. 613

Classification and Topics

• Classification: Wirtschaft ; State and Local Government; Intergovernmental Relations: General ; State and Local Taxation, Subsidies, and Revenue ; State and Local Budget and Expenditures ; State and Local Borrowing ; Intergovernmental Relations; Federalism; Secession
• Subject: Government decentralization ; government fiscal balance ; intra-government transfers ; expenditure assignment ; revenue assignment ; local government borrowing ; Viet Nam

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Morgan, Peter J. ; Trinh, Long Q.
• Event: Veröffentlichung
• (who): Asian Development Bank Institute (ADBI)
• (where): Tokyo
• (when): 2016

Further information

• Handle: http://hdl.handle.net/10419/163112
• Last update: 10.03.2025, 11:42 AM CET