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An Exploration Of The Relationship Between The Quality Of Public Governance And Income Inequality: A Case Study Of Vietnam

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  • PHUC VAN PHAN

    (School of Political Science, Can Tho University, Campus 2, 3/2 Street, Can Tho, Vietnam)

Abstract

Public governance and income inequality relationship is complex and debatable. This paper examines the extent to which the quality of local governance affects inequality in Vietnam spanning the 2006–2016 period. I apply a generalized method of moments (GMM) estimators to a dynamic panel data extracted from the Vietnam’s provincial competitiveness index and the Vietnam household living standard surveys. The findings are that there is a positive inequality — corruption link but no statistically significant correlation coefficient between the overall level of governance and income disparity. The study, therefore, suggests that the Vietnamese Government at all levels should consider both more effective legal practices and economic low-cost solutions to mitigate corruption.

Suggested Citation

  • Phuc Van Phan, 2025. "An Exploration Of The Relationship Between The Quality Of Public Governance And Income Inequality: A Case Study Of Vietnam," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 70(01), pages 211-225, March.
    • Handle: RePEc:wsi:serxxx:v:70:y:2025:i:01:n:s0217590821500703
    DOI: 10.1142/S0217590821500703
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    More about this item

    Keywords

    Public governance; inequality; Vietnam; provincial competitiveness index;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement

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