TAILIEUCHUNG - Using the spatial econometric approach to analyze convergence of labor productivity at the provincial level in Vietnam

Using the spatial econometric approach to analyze convergence of labor productivity at the provincial level in Vietnam. This paper employs the spatial econometric approach to undertake a research of labor productivity convergence of the industrial sector among sixty provinces in Vietnam in the period 1998-2011. | Journal of Economics and Development, , , April 2015, pp. 5-19 ISSN 1859 0020 Using the Spatial Econometric Approach to Analyze Convergence of Labor Productivity at the Provincial Level in Vietnam Nguyen Khac Minh Water Resources University, Vietnam Email: khacminh@ Pham Anh Tuan Vietnam Military Medical University, Vietnam Nguyen Viet Hung National Economics University, Vietnam Abstract This paper employs the spatial econometric approach to undertake a research of labor productivity convergence of the industrial sector among sixty provinces in Vietnam in the period 1998-2011. It is shown that the assumption of the independence among spatial units (provinces in this case) is unrealistic, being in contrast to the evidence of the data reflecting the spatial interaction and the existence of spatial lag and errors. Therefore, neglecting the spatial nature of data can lead to a misspecification of the model. We decompose the sample data into the subperiods 1998-2002 and 2003-2011 for the analysis. Different tests point out that the spatial lag model is appropriate for the whole period of the sample data (1998-2011) and the sub-period (2003-2011), therefore, we employ the maximum likelihood procedure to estimate the spatial lag model. The estimation results allow us to recognize that the convergence model without a spatial lag variable and using ordinary least square to estimate has the problem of omitting variables, which will have impact on the estimated measure of convergence speed. And this problem dominates the positive effect of factors such as mobilizing factors, trade relation, and knowledge spillover in the regional scope. Keywords: Spatial econometric; spatial weight matrix; spatial lag model; spatial error model; I-Moran index. Journal of Economics and Development 5 Vol. 17, , April 2015 1. Introduction rate and population growth rate. However, as we can see, most researches still apply the empirical method for analyzing .

• Kinh tế học
• Using the spatial econometric approach
• Spatial econometric approach
• Analyze convergence
• Labor productivity
• The provincial level in Vietnam
• Living standard towards sustainable
• The provincial level
• Great practical value
• Article analyzes purposes
• Provincial level in Vietnam
• Summary of Doctoral thesis
• Economic management
• Human resource development on economic management
• Provincial level administrative agencies
• Provincial level administrative agencies in Vietnam
• Kinh tế kinh doanh
• Tạp chí khoa học
• Provincial competitiveness index
• Economic growth
• Granger Causality test
• Provincial institutions and capital structure
• New evidence from a transitional economy
• Capital structure and SMEs
• Vietnam’s legal environment
• Firm provincial level panel dataset
• Subsequent economic growth
• Provincial level of Vietnam
• Robust negative relationship
• Initial poverty rate
• Sacrificing economic growth