Sub-national governance quality and economic growth: a cross-region study in Vietnam
by Quang Canh Le; Tuyet Nhung Do
Global Business and Economics Review (GBER), Vol. 24, No. 3, 2021

Abstract: This study argues that sub-national governance affects economic performance not only cross-country but also cross-region within a country where local authorities interpret and apply the policies differently, and the impact of sub-national governance on economic performance is different from the size of the provincial economy. Using datasets collected at the provincial level and the generalised method of moment models for dynamic panel data with two-step and robust standard error procedures, this paper suggests that better sub-national governance is associated with higher provincial economic growth and the effects do not uniform regarding measures of sub-national governance. The impacts of sub-national governance on economic growth is mitigated in larger provinces. These results shed light on how economic growth arises in response to institutional changes in a transitional economy like Vietnam.

Online publication date: Thu, 29-Apr-2021

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