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Institutions for private sector development and pro‐poor growth: Evidence from Vietnam

Author

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  • Trung X. Hoang
  • Cong S. Pham
  • Mehmet A. Ulubaşoğlu

Abstract

Using the Vietnam Household Living Standards Survey 2008, we explore the differences in pro‐poor growth performance in provinces in Vietnam according to the quality of the provinces’ institutions that support private sector activity. We exploit the localized and varying effect of French colonial legacy across Vietnamese provinces to address the endogeneity of institutions. We find strong and robust evidence of a positive effect of good‐quality institutions that support private sector activity on pro‐poor growth and that enhanced working hours and hourly wage and extended income from non‐farm self‐employment play critical roles in this outcome.

Suggested Citation

  • Trung X. Hoang & Cong S. Pham & Mehmet A. Ulubaşoğlu, 2019. "Institutions for private sector development and pro‐poor growth: Evidence from Vietnam," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 27(3), pages 699-728, July.
    • Handle: RePEc:wly:ectrin:v:27:y:2019:i:3:p:699-728
    DOI: 10.1111/ecot.12210
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    References listed on IDEAS

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    1. Hakkala, Katariina & Kokko , Ari, 2007. "The State And The Private Sector In Vietnam," EIJS Working Paper Series 236, Stockholm School of Economics, The European Institute of Japanese Studies.
    2. Martin, Will & Pham, Cong S., 2008. "Estimating the gravity model when zero trade flows are frequent," Working Papers eco_2008_03, Deakin University, Department of Economics.
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