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Analyzing impacts of Vietnam’s North–South highway on creation of regional cluster

Author

Listed:
  • Euijune Kim

    (Seoul National University)

  • Min Jiang

    (Seoul National University)

  • Byula Kim

    (Seoul National University)

Abstract

This paper identifies the influence of Vietnam’s North–South (NS) highway on the creation of regional clusters through spatial simultaneous equation models and spatial cluster analysis. The models showed that the creation of a highway leads to a spatial redistribution of economic activities and the emergence of a new regional cluster in the South Central Coast Region. These results reveal that the improved level of accessibility stimulated by highway development has the potential to increase employment by 0.65% and GDP by 1.01%. Additionally, the construction of the NS highway generates positive economic effects on the less-developed regions in the country, such as the South Central Coast Area, whereas negative effects are seen in the more relatively developed regions of Hanoi and Ba Ria-Vung Tau.

Suggested Citation

  • Euijune Kim & Min Jiang & Byula Kim, 2022. "Analyzing impacts of Vietnam’s North–South highway on creation of regional cluster," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 617-633, June.
    • Handle: RePEc:spr:apjors:v:6:y:2022:i:2:d:10.1007_s41685-022-00230-1
    DOI: 10.1007/s41685-022-00230-1
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