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Spatial spillover effect of the enterprise sector on local residents’ income in Vietnam

Author

Listed:
  • Nhan Thanh Trinh

    (Seoul National University
    Soc Trang Community College)

  • Dohyeong Choi

    (Seoul National University)

  • Seongwoo Lee

    (Seoul National University)

Abstract

This study uses a panel data set from all 63 provinces in Vietnam and spatial regression models to investigate the spatial spillover effect of the enterprise sector on local residents’ income. The results show that expanding the enterprise sector can directly and indirectly increase local income. Although this spillover effect is positive and significant, it is smaller than the direct effect and gradually diminishes when the distance between provinces increases. For example, the estimation results applying the spatial Durbin model holding other variables constant show that a 10% increase in the enterprise capital volume in Ho Chi Minh City can raise local total income in this city, and first- and second-order neighbours by 0.53%, 0.22%, and 0.17%, respectively. This study provides novel evidence on the spatial spillover effect of the enterprise sector on local incomes using spatial econometric models. The findings offer valuable information for policymakers in planning enterprise sector development to improve local residents’ income in Vietnam.

Suggested Citation

  • Nhan Thanh Trinh & Dohyeong Choi & Seongwoo Lee, 2024. "Spatial spillover effect of the enterprise sector on local residents’ income in Vietnam," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 51(4), pages 1067-1118, December.
    • Handle: RePEc:spr:epolin:v:51:y:2024:i:4:d:10.1007_s40812-024-00319-y
    DOI: 10.1007/s40812-024-00319-y
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    More about this item

    Keywords

    Enterprise sector; Local income; Spatial regression; Spillover effects; Vietnam;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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