Impact of Domestic Market Integration on Regional Economic Performance: Evidence from Vietnam

Authors

  • Van Hai Hoang University of Economics, The University of Danang, Viet Nam.
  • Huu Hoa Dao University of Economics, The University of Danang, Viet Nam.

Keywords:

market integration, gross regional domestic product, domestic market, emerging market, Vietnam

Abstract

This study investigates the relationship between market integration and regional economic growth in Vietnam using a panel of prices on traded goods across 30 provinces of Vietnam from 2005 to 2018. The results show that a simple index of market integration is a successful proxy for the market integration level. In addition, the market integration index tends to decrease gradually from 2005 to 2018, suggesting strong evidence for market integration among Vietnam’s provinces. Moreover, a convergence model and spatial econometrics show evidence of a significant positive relationship between market integration and regional economic growth. This study also demonstrates that regional income growth in a given Vietnam province is positively associated with income of its neighboring provinces.

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Published

2021-11-30

How to Cite

Hoang, V. H., & Dao, H. H. (2021). Impact of Domestic Market Integration on Regional Economic Performance: Evidence from Vietnam. SOUTHEAST ASIAN JOURNAL OF ECONOMICS, 9(3), 109–127. Retrieved from https://so05.tci-thaijo.org/index.php/saje/article/view/255871

Issue

Vol. 9 No. 3 (2021): Southeast Asian Journal of Economics, Vol.9 No.3 (December 2021)

Section

Original Articles

License

Creative Commons License

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