DETERMINANTS OF INCOME DISTRIBUTION INEQUALITY IN VIETNAM

Good Essays
FOREIGN TRADE UNIVERSITY
Faculty of Economics and International Business

Topic:
Determinants of Income Distribution Inequality in Vietnam
Group 5B:
Lê Thị Hồng Hạnh

Lê Huy Hoàng

Đỗ Trung Kiên

Mai Diệu Ly

Đặng Thị Thúy Vân

Lecturer : Nguyễn Thị Hải Yến

TABLE OF CONTENT
INTRODUCTION 1
1. Literature review of determinants of income inequality 2
2. Income distribution inequality in Vietnam 7
2.1. Situation .. 7
2.1.1. Gini index 8
2.1.2. Income by quintile 9
2.1.3. Income by region 10
2.2. Causes .. 10
2.2.1 Economic restructuring and globalization 11
2.2.2 Inequality of services access 12
2.2.3 Asset inequality 13
2.3. Impacts .. 13
2.3.1. Economic impacts 13
2.3.2. Health and social impacts 15
2.3.3. Political impacts 16
2.3.4. Comments 17
3. Regression model 17
3.1. Model specification 17
3.2. Econometrics models 19
3.3. Interpretation 23
4. Government policies 24
Conclusion 29
Reference 30
INTRODUCTION
Usually, during the long way to become developed countries, developing and emerging nations have been trading off many things, industry expansion versus environment purity, international integration versus cultural maintenance and improvement, etc. Among them, there always exists a problem that all developing countries like Vietnam are facing with, income distribution inequality. Vietnam has seen a continuous growth in recent years and moved from low income class to lower middle income country. That is a huge effort of Vietnamese economy and policy makers. However, we are coping with disparity in income distribution and this problem tends to non-stop exacerbate over time. We are wondering the causes lying behind income inequality in Vietnam and what determine its changes. By that way, we would like to do this small research on such issue, figuring out its trend, causes and effects, giving comments on Vietnamese



References: 2. Ha Viet Quan (2012), Programme 135 – Sharing lessons on poverty reduction and development schemes for ethnic minorities in Vietnam, United Nation Publication. 3. GS. TSKH Nguyễn Ngọc Trân (5/2010), Bàn thêm về khoảng cách giàu nghèo ở Việt Nam. 4. Aboyade, O. (1978), Integrated Economics: A Case Study of Developing Economies. English Language Book Society. 5. A.A. Awe & Olawumi Ojo Rufus (2012), Determinants of Income Distribution in the Nigeria Economy: 1977-2005. 6. Andy McKay, Finn Tarp (2012), Welfare Dynamics in Rural Vietnam, 2006 to 2010. 7 8. Barro, R. J. (2000), Inequality and Growth in a Panel of Countries’,Journal of Economic Growth. 9. Bulir, A. (1998), Income Inequality “Does Inflation Matter?”, IMF Working Paper. 10. Jason Furman, 1998, Joseph E. Stiglitz, Economic Consequences of Income Inequality, Proceeding. 11. Jong-sung You and Sanjeev Khagram, 2004, Inequality and Corruption, Hauser Center for Nonprofit Organizations Working Paper No. 22. 12. Jose, D., & Teilings, G. (2002), Determinants of Income Distribution. New Evidence from Cross Country Data, Korea University. 13. Karen Rowlingson, 2011, Does Income Inequality cause health and social problem?, Joseph Rowntree Foundation. 14. Kuznet, S. (1963), Quantitative Aspect of the Economic Growth of Nations: Distribution of Income by Size. Economic Development and Cultural Change. 15. Luigi Pasinetti, 1962, Rate of Profit and Income Distribution in Relation to the Rate of Economic Growth, The review of Economic Studies. 17. Odedokun, M.O., & Jeffery, I. (2001), Determinants of Income Inequality and Its Effects on Economic Growth: Evidence from African Countries. 18. Oded Galor, 2004, Omer Moav, From Physical to Human Capital Accumulation: Inequality and the Process of Development, The review of Economic Studies. 19 20. Yasir Khan & Meenal Javed (2011), An investigation into the determinants of income inequality and testing the validity of the Kuznets Hypothesis – Evaluating its relevance within Japan and China over time. 21. Zlatko Nikoloski (1987), Economic and Political Determinants of Income Inequality. 2. United Nation (2008), Investment Policy Review, Vietnam, United Nation Publication. 3. General Statistic Office (2008), Enterprises’data of the year 2000-2008 4 5. Minquan Liu and Yimeng Yin (2010), Human Development in East and South East Asian Economies 1990-2010, Human Development Research Paper, United Nations Development Programme.

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