The Influence of Quality of Provincial Governance on Multidimensional Inequality in Vietnam

Thị Huệ Hoàng; Thị Bích Trâm Nguyễn; Thu Hiền Hoàng; Thị Thanh Bình Vũ; Minh Quyên Hoàng; Ngọc Khánh Vũ

Authors

Thị Huệ Hoàng National Economic University, Vietnam
Thị Bích Trâm Nguyễn National Economic University, Vietnam
Thu Hiền Hoàng National Economic University, Vietnam
Thị Thanh Bình Vũ National Economic University, Vietnam
Minh Quyên Hoàng National Economic University, Vietnam
Ngọc Khánh Vũ National Economic University, Vietnam

Keywords:

Atkinson inequality index, GMM, multidimensional inequality, quality of governance

Abstract

The study examines the influence of the quality of governance on multidimensional inequality in 63 Vietnamese provinces through the Viet Nam Provincial Governance and Public Administration Performance Index (PAPI) and the Vietnam Household Living Standard Survey (VHLSS) over 5 years (2012, 2014, 2016, 2018, and 2020). The article measures multidimensional inequality by the Atkinson inequality index through 4 dimensions: consumption, health, education, and housing, as suggested by Tsui (1995, 1999). Applying the Generalized Method of Moments (GMM), the result shows that the quality of governance has a negative effect on multidimensional inequality. From there, the study proposes recommendations to improve the quality of governance and reduce multidimensional inequality in Vietnam.

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