TAILIEUCHUNG - Báo cáo " Economic growth and changes in welfares during the economic reforms in Vietnam "

Over the past 20 years, with the reform policy called Doi Moi comprehensively applied to the economy, Vietnam has achieved great results in her economic development process. High rate of economic growth with average of 7-8% per annum sustained for almost nearly two decades has contributed to considerable increase in per capita income, from 180 USD in early 1990s to nearly 1,200 USD in 2010. With the considerable increase in per capita income, there was the improvement of the people’s general welfare. However, growth and development in the past 20 years has contributed to increase the gap between. | VNU Journal of Science Economics and Business 26 No. 5E 2010 11-23 Economic growth and changes in welfares during the economic reforms in Vietnam Dr. Nguyen Huy Hoang Institute for Southeast Asia Studies No 1 Lieu Giai Ba Dinh Hanoi Vietnam Received on 19 August 2010 Abstract. Over the past 20 years with the reform policy called Doi Moi comprehensively applied to the economy Vietnam has achieved great results in her economic development process. High rate of economic growth with average of 7-8 per annum sustained for almost nearly two decades has contributed to considerable increase in per capita income from 180 USD in early 1990s to nearly 1 200 USD in 2010. With the considerable increase in per capita income there was the improvement of the people s general welfare. However growth and development in the past 20 years has contributed to increase the gap between rich and poor. By using the qualitative method combined with the data explanatory analysis and the method of computing Gini index of inequality as well as growth model the findings pointed that generally the income inequality in Vietnam during the 1998-2008 period irrespective of the source of income is in increasing tendency. In addition based on the growth model estimation results the study proved that the economic growth rate is in positively correlated to inequality in come. 1. Introduction Over the past 20 years Vietnam s development has shown its mark in its economic history as the economy has restored macroeconomic stability to achieve high rate of growth and an impressive reduction of poverty World Bank 2001 . The achievements were resulted from the government s efforts to recover the country from the deep socioeconomic recession in late 1970s and early 1980s which led the economy into hyperinflation and stagnation that caused deterioration in the people s living standard Tel 84-983994104 E-mail hoang_iseas@ 1 The Vietnamese words Doi Moi is analogue to reform and is used as the official .

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