Abstract
This paper investigates the determinants of institutional quality at province level and its potential spillover effects across provinces in Vietnam. Three spatial econometric models are employed with three spatial weight matrices and a data set of all sixty three provinces collected from the General Statistics Office and the Vietnam Chamber of Commerce and Industry, spanning from 2013 to 2021. Substantial evidence is found to support that an improvement in the institutional quality of one province helps leverage that of adjacent provinces. GRDP per capita, industrial production, and trained labor force have both positive direct and spillover effects. However, FDI and profit before tax have no influence on institutional quality. The impact of local government spending is felt in neighboring provinces, though not in the host province.
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Notes
- 1.
Because data for several determinants are available at country level, but not at provincial level in Vietnam, our review here is confined to those variables having data at provincial level.
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Chon Van Le acknowledges financial support from the Vietnam National University, Ho Chi Minh City under the research project B2022-28-05.
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Nguyen, V.Q., Le, C.V. (2023). Spatial Spillover Effect of Provincial Institutional Quality in Vietnam. In: Huynh, VN., Le, B., Honda, K., Inuiguchi, M., Kohda, Y. (eds) Integrated Uncertainty in Knowledge Modelling and Decision Making. IUKM 2023. Lecture Notes in Computer Science(), vol 14375. Springer, Cham. https://doi.org/10.1007/978-3-031-46775-2_27
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