TAILIEUCHUNG - Where does pro-poor growth occur in Vietnam

The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. | Nguyen Hoang Bao. Journal of Economic Development 22(1), 20 – 41 20 Where does Pro-Poor Growth Occur in Vietnam? NGUYEN HOANG BAO University of Economics HCMC - hoangbao@ ARTICLE INFO ABSTRACT Article history: Although Vietnam’s economic growth and poverty reduction for almost three decades have been remarkable, growth for poverty reduction is unequally distributed across the nation. The paper examines the cause of poverty and the impact of provincial economic growth on poverty alleviation, using the data of 63 provinces in Vietnam. The elasticity of poverty with respect to provincial economic growth is employed (the elasticities of headcount index, poverty gap index, and squared poverty index with respect to provincial economic growth) to identify the provinces where pro-poor growth has occurred. The elasticity of poverty with respect to provincial Gini coefficient is examined to identify the impact of expenditure inequality on poverty. The simultaneous equation system is estimated to analyze not only direct and indirect effects of the related variables, but also the causality effect between economic growth and the poverty elasticity with respect to both growth and the Gini coefficient. Received: Dec. 12 2013 Received in revised form: Jan. 24 2014 Accepted: Dec. 30 2014 Keywords: pro-poor growth, elasticity of poverty with respect to growth, elasticity of poverty with respect to Gini coefficient, simultaneous equation system model. Nguyen Hoang Bao. Journal of Economic Development 22(1), 20 – 41 21 1. Introduction Vietnam’s achievements in economic growth and poverty reduction in the past three decades have been remarkable. However, pro-poor growth might be unequally distributed across the nation, and the inequality might impact on poverty. How important are the provincial economic growth rates to poverty alleviation? Does the provincial inequality, which is measured by the Gini coefficient, impact on poverty alleviation? Are there .

• Kinh tế học
• Pro poor growth
• Elasticity of poverty with respect to growth
• Simultaneous equation system model
• Gini coefficient
• Vietnam’s economic growth