Regional Welfare Disparities and Regional Economic Growth in Vietnam

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Regional Welfare Disparities and Regional Economic Growth in Vietnam Regional Welfare Disparities and Regional Economic Growth in Vietnam Promotor: Prof. Dr. W.J.M. Heijman Hoogleraar Regionale Economie, Leerstoelgroep Economie van Consumenten en Huishoudens Co-promotor: Dr. J.A.C. van Ophem Universitair Hoofddocent, Leerstoelgroep Economie van Consumenten en Huishoudens Promotiecommissie: Prof. Dr. Ir J.D. van der Ploeg (Wageningen Universiteit) Prof. Dr. H. Visser (Vrije Universiteit, Amsterdam) Prof. Dr. A. Kuyvenhoven (Wageningen Universiteit) Prof. Dr. J. van Dijk (Rijksuniversiteit Groningen) Dit onderzoek is uitgevoerd binnen de “Mansholt Graduate School of Social Sciences” Regional Welfare Disparities and Regional Economic Growth in Vietnam Nguyen Huy Hoang Proefschrift ter verkrijging van de graad van doctor op gezag van de rector magnificus van Wageningen Universiteit prof. dr. M.J. Kropff, in het openbaar te verdedigen op dinsdag 17 maart 2009 des namiddags te vier uur in de Aula Nguyen Huy Hoang (2009) Regional Welfare Disparities and Regional Economic Growth in Vietnam Hoang, N.H. PhD thesis Wageningen University (2009). With ref. With summaries in English and Dutch. ISBN: 978-90-8585-319-0 Preface Of the past five years, since my arrival to Wageningen to start my PhD research, especially the first three and half years were not always a smooth sailing. I had to catch up to courses, construct empirical models and improve my English writing skills. Sometimes, finishing the thesis seemed far away. Apart from these problems, the PhD period has been an exciting one, with many opportunities to travel, talk to interesting people, make new friends, develop new skills and, above all, I have learnt a lot. Many times it was really nice and the job would not have been so pleasing without the interaction with people to whom I am very grateful. First of all, I need to show my great appreciation to my promoters Wim Heijman and Johan van Ophem, who have both been vast sources of inspiration and positive feedback. Wim and Johan, I thank you both very much for your hard work reading my chapters and giving me valuable suggestions and corrections, as well as the encouragement and enthusiasm you shared with me over the years, especially Johan, you only took the job one year ago, but the help you devoted to my work was huge and invaluable. I would also like to show my sincere gratitude to Henk Folmer for his cooperation as my promoter in the first four years of my research before Johan came to scene. Henk, thank you very much for the multidimensional approach to welfare inequality you introduced to me and the supervision you gave me initially. My special thanks go to all members of the Economics of Consumers and Households Group of Wageningen University. Most importantly, Annelies Coppelmans and Margaret van Wissen, who always helped me when I needed that. Other staff of the group: Gerrit Antonides and Pierre van Mouche. My former and current PhD colleagues and friends of the group: Judith Cornelisse, Masayo Igata, Muyeye Chambwera, Pius Odunga, Subrata Dutta, Hirut Bekele, Leonie Cramer and Romanus Dimoso. Thank you all for your company during the time I was there in the group. I have enjoyed the frequent discussions we had about every aspect during coffee breaks or whenever we gathered together. I am also grateful to Ms. Dinie Verbeek for her help making the thesis ready for printing. Thanks are also extended to my fellow doctoral colleagues from other departments of Wageningen University, my fellow doctoral Vietnamese in Wageningen University and many others who were with me during the time I was there. I have enjoyed the discussions we had and travels with you during our stay in Wageningen. I would also like to thank my colleagues in Vietnam: Nguyen Huy Thanh for your various formal administrative procedures, and Nguyen Van Ha, Nguyen Ngoc Lan, Vu Thi Van Anh, Le Phuong Hoa, Quang Thi Ngoc Huyen and Nguyen Thuong Huyen. You were always sources of fun to help easing my frustration and tension I faced during the time I was constructing and estimating empirical models for my thesis, and writing chapters. Thanks also go to Vu Tuan Anh from the National Institute of Economics for his cooperation and assistance. I would also like to gratefully acknowledge the financial support I have received from the Ministry of Education and Training (MOET), Government of Vietnam. Many thanks also go to individuals (Pham Manh Hung and Le Anh Kiem) and institutions (Department of Socio-environment Statistics and Department of National Accounts of the General Statistics Office of Vietnam - GSO) that helped me during the data collection phase in Vietnam. Without your help, this thesis would not have been possible. V Last but not least, I am deeply indebted to my family and most beloved people. My daughter, Bao Phuong, and my son, Duc Nguyen, have been a source of inspiration for me during the PhD period. It seems to me that my late father has always followed my every step. My mother was always behind me. My wife has sacrificed a lot to help me looking after our children and taking care of our family when I was away, and she has been a huge source of support for me during the past five years. I am really grateful to her for all kinds of support and sacrifices. My brothers, sisters, nephews, nieces and my most beloved friend, Nguyen Trong Minh, who have always loved me and taken care of me and my children over the past years. This thesis is partly devoted to them. Once again, I thank you all! Nguyen Huy Hoang VI Table of Contents Chapter one Introduction ................................................................................................................1 1.1. The objectives of the study ................................................................................................1 1.2. The research questions of the study ..................................................................................4 1.3. The approaches of the study ..............................................................................................5 1.4. Outline of the study ...........................................................................................................6 Chapter two Macro Economic Reforms and Changes in Welfare in Vietnam ...........................9 2.1. Introduction .......................................................................................................................9 2.2. Overview of the geography of Vietnam ..........................................................................11 2.3. Demographic characteristics of Vietnam: .......................................................................13 2.3.1. Population density ..................................................................................................13 2.3.2. Population characteristics .......................................................................................14 2.3.3. Education characteristics of the population ............................................................16 2.3.4. Household characteristics .......................................................................................19 2.4. A review of the economic development before doi moi: Period 1975-1985 ...................20 2.5. Economic reform under doi moi and its impacts on macroeconomic performance ........23 2.5.1. Economic reform under doi moi .............................................................................24 2.5.2. The consequences of economic reforms on macroeconomic performance ............27 2.6. Changes in people’s welfare ...........................................................................................30 2.7. Summary and conclusion ................................................................................................31 Chapter three Multidimensional methods to assess welfare inequality ....................................33 3.1. Introduction .....................................................................................................................33 3.2. A brief review of literature on multidimensional regional welfare inequality ................35 3.3. A method for measuring and analyzing multidimensional regional welfare inequality ..37 3.3.1. Theoretical approach to measurement of multidimensional inequality ..................37 3.3.2. Estimation models ..................................................................................................40 3.4. Method of data transformation ........................................................................................42 3.5. An overview of the estimation procedure .......................................................................43 3.6. Summary .........................................................................................................................45 VII Chapter four Healthcare Facilities and Health Status ................................................................47 4.1. Introduction .....................................................................................................................47 4.2. An overview of current structure of health services in Vietnam .....................................48 4.3. Health status and healthcare policy since 1975 ...............................................................51 4.3.1. Healthcare facilities and health status .....................................................................51 4.3.2. Spatial patterns in the distribution of healthcare facilities and health status ..........54 4.3.3. Overview of key reforms in health sector
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