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30/03/2023
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Le, N. (2023). Spillover effects of transportation capital and provincial competitiveness on economic growth in Vietnam. Journal of International Economics and Management, 23(1), 28-38. https://doi.org/10.38203/jiem.023.1.0059
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Spillover effects of transportation capital and provincial competitiveness on economic growth in Vietnam
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Abstract
This study uses the spatial econometric model to evaluate the impact of transportation capital and provincial competitiveness on economic growth in Vietnam. Data from 63 provinces and cities in Vietnam were collected between 2010 and 2017. It is found that both direct and indirect effects of transportation capital are positive and statistically significant, and that the spillover effect is strong. The findings confirm the high efficiency of synchronous investments in the transport infrastructure. In addition, the study points to the necessity of improving labor quality, which is closely related to the services provided by the provincial government: general education, vocational training, and employment service growth.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Keywords
Transportation capital, Economic growth, Spillover effect
References
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Becker, G.S. (1962), “Investment in human capital: a theoretical analysis”, The Journal of Political Economy, Vol. 70, pp. 9 - 49.
Boarnet, M.G. (1996), “The direct and indirect economic effects of transportation infrastructure”, Working Paper No. 340, University of California Transportation Center, University of California at Berkeley.
Boopen, S. (2006), “Transport infrastructure and economic growth: evidence from Africa using dynamic panel estimates”, The Empirical Economics Letters, Vol. 5 No. 1, pp. 37 - 52.
Cobb, C.W. and Douglas, P.H. (1928), “A theory of production”, American Economic Review, Vol. 18 No. 1, pp. 1939 - 1965.
Dehgan, Z. (2018), “Do transport infrastructure spillovers matter for economic growth? evidence on road and railway infrastructure in Iranian provinces”, Regional Science Policy & Practice, Vol. 2018 No. 10, pp. 49 - 63.
Eisner, R. (1991), “Infrastructure and regional economic performance: comment”, New England Economic Review, Vol. September/October, pp. 47 - 58.
Finn, M. (1993), “Is all government capital productive?”, Economic Quarterly, Vol. 79 No. 4, pp. 53 - 80.
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Holtz-Eakin, D. and Schwartz, A. (1995), “Spatial productivity spillovers from public infrastructure: evidence from state highways”, International Tax and Public Finance, Vol. 2 No. 3, pp. 459 - 468.
Ivankova, V. (2019), “Management of competitiveness and economic performance based in the V4 countries”, Marketing and Management of Innovations, Vol. 3, pp. 73 - 78.
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Melo, P.C., Graham, D. and Ardao, R. (2013), “The productivity of transport infrastructure investment: a meta-analysis of empirical evidence”, Regional Science and Urban Economics, Vol. 43 No. 5, pp. 695 - 706.
Mincer, J. (1958), “Investment in human capital and personal income distribution”, Journal of Political Economy, Vol. 66 No. 4, pp. 281 - 302.
Minh, D.T. and Huong, Le, T.M. (2016), “Nghien cuu tac dong cua von dau tu tu nhan, lao dong va co so ha tang den tang trương kinh te vung Dong bang Song Cuu Long”, Van Hien University Journal of Science, Tap 4, So 3, tr. 65 - 74.
Ministry of Transport. (2015), “Vi sao nang luc ha tang giao thong Vn thang hang nhanh?”, Available at https://www.mt.gov.vn/vn/tin-tuc/38398/vi-sao-nang-luc-ha-tang-giao-thong-vn-thang-hang-nhanh.aspx (Accessed 20 December, 2021).
Munnell, A.H. and Cook, L.M. (1990), “How does public infrastructure affect regional economic performance?”, New England Economic Review, Vol. Sept./Oct., pp. 11 - 33.
Pande, R. (2009), “Understanding political corruption in low income countries”, Working paper No. 145, Center for International Development at Harvard University, Harvard University.
Petty, W. (1900), “Petty’s place in the history of economic theory”, The Quarterly Journal of Economics, Vol. 14 No. 3, pp. 307 - 340.
Ramsey, F. (1928), “A mathematical theory of saving”, Economic Journal, Vol. 38, pp. 543 - 559.
Romer, R. (1990), “Human capital and growth: theory and evidence”, Carnegie-Rochester Conference Series on Public Policy, Vol. 32, pp. 251 - 286.
Schultz, T.W. (1961), “Investment in human capital”, American Economic Review, Vol. 51 No. 1, pp. 1 - 17.
Schwab, K. (2011), “The Global Competitiveness Report 2010-2011”, Available at https://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_ 2010-11.pdf (Accessed 20 December, 2021)
Schwab, K. (2019), “The Global Competitiveness Report 2019”, Available at https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf (Accessed 15 November, 2021)
Smith, A. (1776), An inquiry into the nature and causes of the wealth of nations, Methuen & Co.
Tin, N.A. (2017), Tac dong cua dau tu cong den tang truong kinh te vung dong bang song Cuu Long, Doctoral Thesis, University of Economics Ho Chi Minh City.
Tinh, D, Tran, Q.T., Hien, N. (2018), “Local competitiveness and labour market returns in a transition economy: evidence from Vietnam”, Hitotsubashi Journal of Economics, Vol. 59 No. 2, pp. 95 - 112.
Tuong, V.P., Binh, D.T. and Hoa., N.D. (2019), “Impact of transport infrastructure on firm performance: case study of Cuu Long Delta area, Vietnam”, Problems and Perspectives in Management, Vol. 17 No. 2, pp. 51 - 62.
Wicksell, K. (1916), “Den 'kritiska punkten' i lagen for jordbrukets aftagande produktivitet”, Economisk Tidskrift, Vol. 18 No. 8, pp. 285 - 292.
World Intellectual Property Organization. (2021), “Global Innovation Index 2021”, Available at https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2021/vn.pdf (Accessed 20 December, 2021).
Yu, N., Jianing, M. and Walker, W. (2013), “Is transport infrastructure construction a wise choice for stimulating economic growth in West China?”, International Journal of Transport Economics, Vol. 40 No. 1, pp. 99 - 124.
Zou, W., Zhang, F., Zhuang, Z. and Song, H. (2008), “Transport infrastructure, growth, and poverty alleviation: empirical analysis of China”, Annals of Economics and Finance, Vol. 9 No. 2, pp. 345 - 371.
Acemoglu, D. and Johnson, S. (2005), “Unbundling institutions”, Journal of Political Economy, Vol. 11 No. 5, pp. 949 - 995.
Adams, S. (2009), “Foreign Direct investment, domestic investment, and economic growth in Sub-Saharan Africa”, Journal of Policy Modeling, Vol. 31 No. 6, pp. 939 - 949.
Arshad, H. (2019), “Foreign direct investments, institutional quality, and economic growth”, The Journal of International Trade and Economic Development, Vol. 28 No. 5, pp. 561 - 579.
Ayres, C.E. (1962), The theory of economic progress. A study of the fundamental economic development and cultural change, Schocken Books, New York.
Baltagi, B. and Pinnoi, N. (1995), “Public capital stock and state productivity growth: further evidence from an error components model”, Empirical Economics, Vol. 20, pp. 351 - 359.
Becker, G.S. (1962), “Investment in human capital: a theoretical analysis”, The Journal of Political Economy, Vol. 70, pp. 9 - 49.
Boarnet, M.G. (1996), “The direct and indirect economic effects of transportation infrastructure”, Working Paper No. 340, University of California Transportation Center, University of California at Berkeley.
Boopen, S. (2006), “Transport infrastructure and economic growth: evidence from Africa using dynamic panel estimates”, The Empirical Economics Letters, Vol. 5 No. 1, pp. 37 - 52.
Cobb, C.W. and Douglas, P.H. (1928), “A theory of production”, American Economic Review, Vol. 18 No. 1, pp. 1939 - 1965.
Dehgan, Z. (2018), “Do transport infrastructure spillovers matter for economic growth? evidence on road and railway infrastructure in Iranian provinces”, Regional Science Policy & Practice, Vol. 2018 No. 10, pp. 49 - 63.
Eisner, R. (1991), “Infrastructure and regional economic performance: comment”, New England Economic Review, Vol. September/October, pp. 47 - 58.
Finn, M. (1993), “Is all government capital productive?”, Economic Quarterly, Vol. 79 No. 4, pp. 53 - 80.
Kamps, C. (2006), “New estimates of government net capital stocks for 22 OECD countries 1960-2001”, IMF Staff Paper, Vol. 53 No. 1, pp. 120 - 150.
General Statistics Office. (2021), “After 140 years, what does Vietnam’s railway get to compete?”, Available at https://www.gso.gov.vn/en/data-and-statistics/2021/04/after-140-years-what-does-viet-nams-railway-get-to-compete/ (Accessed 20 December, 2021).
Hanushek, E.A. (2013), “Economic growth in developing countries: the role of human capital”, Economics of Education Review, Vol. 37, pp. 204 - 212.
Holtz-Eakin, D. and Schwartz, A. (1995), “Spatial productivity spillovers from public infrastructure: evidence from state highways”, International Tax and Public Finance, Vol. 2 No. 3, pp. 459 - 468.
Ivankova, V. (2019), “Management of competitiveness and economic performance based in the V4 countries”, Marketing and Management of Innovations, Vol. 3, pp. 73 - 78.
Jiang, X., Zhang, L., Xiong, C. and Wang, R. (2015), “Transportation and regional economic development: analysis of spatial spillovers in China provincial regions”, Networks and Spatial Economics, Vol. 16 No. 3, pp. 769 - 790.
Lewis, A. (1955), The theory of economic growth, Routledge.
Melo, P.C., Graham, D. and Ardao, R. (2013), “The productivity of transport infrastructure investment: a meta-analysis of empirical evidence”, Regional Science and Urban Economics, Vol. 43 No. 5, pp. 695 - 706.
Mincer, J. (1958), “Investment in human capital and personal income distribution”, Journal of Political Economy, Vol. 66 No. 4, pp. 281 - 302.
Minh, D.T. and Huong, Le, T.M. (2016), “Nghien cuu tac dong cua von dau tu tu nhan, lao dong va co so ha tang den tang trương kinh te vung Dong bang Song Cuu Long”, Van Hien University Journal of Science, Tap 4, So 3, tr. 65 - 74.
Ministry of Transport. (2015), “Vi sao nang luc ha tang giao thong Vn thang hang nhanh?”, Available at https://www.mt.gov.vn/vn/tin-tuc/38398/vi-sao-nang-luc-ha-tang-giao-thong-vn-thang-hang-nhanh.aspx (Accessed 20 December, 2021).
Munnell, A.H. and Cook, L.M. (1990), “How does public infrastructure affect regional economic performance?”, New England Economic Review, Vol. Sept./Oct., pp. 11 - 33.
Pande, R. (2009), “Understanding political corruption in low income countries”, Working paper No. 145, Center for International Development at Harvard University, Harvard University.
Petty, W. (1900), “Petty’s place in the history of economic theory”, The Quarterly Journal of Economics, Vol. 14 No. 3, pp. 307 - 340.
Ramsey, F. (1928), “A mathematical theory of saving”, Economic Journal, Vol. 38, pp. 543 - 559.
Romer, R. (1990), “Human capital and growth: theory and evidence”, Carnegie-Rochester Conference Series on Public Policy, Vol. 32, pp. 251 - 286.
Schultz, T.W. (1961), “Investment in human capital”, American Economic Review, Vol. 51 No. 1, pp. 1 - 17.
Schwab, K. (2011), “The Global Competitiveness Report 2010-2011”, Available at https://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_ 2010-11.pdf (Accessed 20 December, 2021)
Schwab, K. (2019), “The Global Competitiveness Report 2019”, Available at https://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf (Accessed 15 November, 2021)
Smith, A. (1776), An inquiry into the nature and causes of the wealth of nations, Methuen & Co.
Tin, N.A. (2017), Tac dong cua dau tu cong den tang truong kinh te vung dong bang song Cuu Long, Doctoral Thesis, University of Economics Ho Chi Minh City.
Tinh, D, Tran, Q.T., Hien, N. (2018), “Local competitiveness and labour market returns in a transition economy: evidence from Vietnam”, Hitotsubashi Journal of Economics, Vol. 59 No. 2, pp. 95 - 112.
Tuong, V.P., Binh, D.T. and Hoa., N.D. (2019), “Impact of transport infrastructure on firm performance: case study of Cuu Long Delta area, Vietnam”, Problems and Perspectives in Management, Vol. 17 No. 2, pp. 51 - 62.
Wicksell, K. (1916), “Den 'kritiska punkten' i lagen for jordbrukets aftagande produktivitet”, Economisk Tidskrift, Vol. 18 No. 8, pp. 285 - 292.
World Intellectual Property Organization. (2021), “Global Innovation Index 2021”, Available at https://www.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2021/vn.pdf (Accessed 20 December, 2021).
Yu, N., Jianing, M. and Walker, W. (2013), “Is transport infrastructure construction a wise choice for stimulating economic growth in West China?”, International Journal of Transport Economics, Vol. 40 No. 1, pp. 99 - 124.
Zou, W., Zhang, F., Zhuang, Z. and Song, H. (2008), “Transport infrastructure, growth, and poverty alleviation: empirical analysis of China”, Annals of Economics and Finance, Vol. 9 No. 2, pp. 345 - 371.