Impacts of the sectoral composition of growth on poverty reduction in Vietnam
Purpose – The purpose of this paper is to assess the impact of sectoral economic growth and other factors on poverty reduction in Vietnam in the period 2010–2016. Design/methodology/approach – Originating from the question of whether there is an endogenous problem between the structure of economic g...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2019-12-01
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| Series: | Journal of Economics and Development |
| Subjects: | |
| Online Access: | https://www.emerald.com/insight/content/doi/10.1108/JED-10-2019-0046/full/pdf?title=impacts-of-the-sectoral-composition-of-growth-on-poverty-reduction-in-vietnam |
| _version_ | 1828410274501099520 |
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| author | Thu Hang Pham James Riedel |
| author_facet | Thu Hang Pham James Riedel |
| author_sort | Thu Hang Pham |
| collection | DOAJ |
| description | Purpose – The purpose of this paper is to assess the impact of sectoral economic growth and other factors on poverty reduction in Vietnam in the period 2010–2016. Design/methodology/approach – Originating from the question of whether there is an endogenous problem between the structure of economic growth by sector and some other factors in the process of impact on poverty reduction, the paper has used the 2-Stage Least Squares method to deal with the endogenous issues. Findings – Increasing the proportion of the industrial sector and the agricultural sector had great impacts on poverty reduction. In contrast, the increasing proportion of the service sector made the poverty rate higher. One noticeable thing is that economic growth was not significant for the goal of poverty reduction in 2010–2016. In addition, the process of urbanization, the increase in the labor rate and literacy rate contributed positively to poverty reduction achievements. Finally, population growth was also one of the reasons hindering Vietnam’s successful poverty reduction process. Practical implications – Accelerating the process of economic restructuring in the direction of increasing the proportion of the industry is accompanied by more attention to agricultural development than the service sector. Employment creation policies should be promoted. Maintaining population control by educating poverty reduction awareness for the poor will have a positive effect on long-term poverty reduction. Originality/value – Research on the growth structure by sector affecting poverty reduction in Vietnam is still relatively limited. The study of relationships in the context of endogenous existence is still quite limited in Vietnam. Therefore, this paper has focused on the question of sectoral economic growth affects poverty in the interrelation among sectors in the process of economic development. |
| first_indexed | 2024-12-10T12:09:30Z |
| format | Article |
| id | doaj.art-67e8bbcc9e5546699fa6532ae49a5e9a |
| institution | Directory Open Access Journal |
| issn | 1859-0020 2632-5330 |
| language | English |
| last_indexed | 2024-12-10T12:09:30Z |
| publishDate | 2019-12-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | Journal of Economics and Development |
| spelling | doaj.art-67e8bbcc9e5546699fa6532ae49a5e9a2022-12-22T01:49:24ZengEmerald PublishingJournal of Economics and Development1859-00202632-53302019-12-0121221322210.1108/JED-10-2019-0046637237Impacts of the sectoral composition of growth on poverty reduction in VietnamThu Hang Pham0James Riedel1Vietnam Banking Academy, Hanoi, VietnamJohns Hopkins University, Baltimore, Maryland, USAPurpose – The purpose of this paper is to assess the impact of sectoral economic growth and other factors on poverty reduction in Vietnam in the period 2010–2016. Design/methodology/approach – Originating from the question of whether there is an endogenous problem between the structure of economic growth by sector and some other factors in the process of impact on poverty reduction, the paper has used the 2-Stage Least Squares method to deal with the endogenous issues. Findings – Increasing the proportion of the industrial sector and the agricultural sector had great impacts on poverty reduction. In contrast, the increasing proportion of the service sector made the poverty rate higher. One noticeable thing is that economic growth was not significant for the goal of poverty reduction in 2010–2016. In addition, the process of urbanization, the increase in the labor rate and literacy rate contributed positively to poverty reduction achievements. Finally, population growth was also one of the reasons hindering Vietnam’s successful poverty reduction process. Practical implications – Accelerating the process of economic restructuring in the direction of increasing the proportion of the industry is accompanied by more attention to agricultural development than the service sector. Employment creation policies should be promoted. Maintaining population control by educating poverty reduction awareness for the poor will have a positive effect on long-term poverty reduction. Originality/value – Research on the growth structure by sector affecting poverty reduction in Vietnam is still relatively limited. The study of relationships in the context of endogenous existence is still quite limited in Vietnam. Therefore, this paper has focused on the question of sectoral economic growth affects poverty in the interrelation among sectors in the process of economic development.https://www.emerald.com/insight/content/doi/10.1108/JED-10-2019-0046/full/pdf?title=impacts-of-the-sectoral-composition-of-growth-on-poverty-reduction-in-vietnampovertyvietnameconomic sectorsendogenoussectoral composition of growth |
| spellingShingle | Thu Hang Pham James Riedel Impacts of the sectoral composition of growth on poverty reduction in Vietnam Journal of Economics and Development poverty vietnam economic sectors endogenous sectoral composition of growth |
| title | Impacts of the sectoral composition of growth on poverty reduction in Vietnam |
| title_full | Impacts of the sectoral composition of growth on poverty reduction in Vietnam |
| title_fullStr | Impacts of the sectoral composition of growth on poverty reduction in Vietnam |
| title_full_unstemmed | Impacts of the sectoral composition of growth on poverty reduction in Vietnam |
| title_short | Impacts of the sectoral composition of growth on poverty reduction in Vietnam |
| title_sort | impacts of the sectoral composition of growth on poverty reduction in vietnam |
| topic | poverty vietnam economic sectors endogenous sectoral composition of growth |
| url | https://www.emerald.com/insight/content/doi/10.1108/JED-10-2019-0046/full/pdf?title=impacts-of-the-sectoral-composition-of-growth-on-poverty-reduction-in-vietnam |
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