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Institutions for private sector development and pro‐poor growth: Evidence from Vietnam
Author(s) -
Hoang Trung X.,
Pham Cong S.,
Ulubaşoğlu Mehmet A.
Publication year - 2019
Publication title -
economics of transition and institutional change
Language(s) - English
Resource type - Journals
eISSN - 2577-6983
pISSN - 2577-6975
DOI - 10.1111/ecot.12210
Subject(s) - vietnamese , endogeneity , private sector , exploit , demographic economics , wage , business , quality (philosophy) , labour economics , economic growth , economics , development economics , econometrics , philosophy , linguistics , computer security , epistemology , computer science
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.