Sources of Regional Income Disparity in Rural Vietnam: Oaxaca-Blinder Decomposition

This paper investigates determinants of regional income disparity in rural Vietnam, with special emphasis placed on the roles of human capital and land. We apply a decomposition method, suggested by Oaxaca and Blinder. We found that returns to assets rather than endowments, especially those of human capital, are one of the leading factors to account for income differences across regions. We also found that substantial improvements of returns to human capital in the Red River delta region are a driving force to catch up with Mekong River delta region. Unexpectedly, differences in land endowment do not strongly correlate with regional income disparity because better access to land in a region was partially offset by lower returns.

Chapter 6 Economic integration and changes in industrial location in Vietnam

Vietnam has been praised for its achievements in economic growth and success in poverty reduction over the last two decades. The incidence of poverty reportedly fell from 58.1% in 1993 to 19.5% in 2004 (VASS [2006, 13]). The country is also considered to have only a moderate level of aggregate economic inequality by international comparisons. As of the early 2000s, Vietnam’s consumption-based Gini coefficient is found to be comparable to that of other countries with similar levels of per capita GDP. The Gini index did increase between 1993 and 2004, but rather slowly, from 0.34 to 0.37 (VASS [2006, 13]). Yet, as the country moves on with its market oriented reforms, the question of inequality has been highlighted in policy and academic discourses. In particular, it is pointed out that socio-economic inequalities between regions (or provinces) are significant and have been widening behind aggregate figures (NCSSH [2001], Mekong Economics [2005], VASS [2006]). Between 1993 and 2004, while real per capita expenditure increased in all regions, it grew fastest in those regions with the highest per capita expenditures and vice versa, resulting in greater regional disparities (VASS [2006, 37]). A major contributing factor to such regional inequalities is the uneven distribution of industry within the country. According to the Statistical Yearbook of Vietnam, of the country's gross industrial output in 2007, over 50% belongs to the South East region, close to 25% to the Red River Delta, and about 10% to the Mekong River Delta. All remaining regions share some 10% of the country's gross industrial output. At a quick glance, the South East increased its share of the total industrial gross output in the 1990s, while the Red River Delta started to gain ground in more recent years. How can the government deal with regional disparities is a valid question. In order to offer an answer, it is necessary in the first place to grasp the trend of disparities as well as its background. To that end, this paper is a preparatory endeavor. Regional disparities in industrial activities can essentially be seen as a result of the location decisions of enterprises. While the General Statistics Office (GSO) of Vietnam has conducted one enterprise census (followed by annual enterprise surveys) and two stages of establishment censuses since 2000, sectorally and geographically disaggregated data are not readily available. Therefore, for the moment, we will draw on earlier studies of industrial location and the determinants of enterprises’ location decisions in Vietnam. The remainder of this paper is structured as follows. The following two sections deal with the country context. Section 2 will outline some major developments in Vietnam’s international economic relations that may affect sub-national location of industry. According to the theory of spatial economics, economic integration is seen as a major driver of changes in industrial location, both between and within countries (Nishikimi [2008]). Section 3, on the other hand, will consider some possible factors affecting geographic distribution of industry in the domestic sphere. In Section 4, existing literature on industrial and firm location will be examined, and Section 5 will briefly summarize the findings and suggest some areas for future research.

South America, 1739 (Image 1 of 2) (Raster Image)

This layer is a georeferenced raster image of the historic paper map entitled: Carte du Perou, pour servir à l'histoire des Incas et à celle de l'etat present de cette province, dressée par Philippe Buache, sur les observations astronomiq[es] faites aux environs de l'équateur et communiquées à l'Académie depuis l'an 1736 jusqu'en 1739 par M.M. Godin, Bouguer et de la Condaminede l'Acad. R[le] des Sciences Assujetie por les autres parties aux observations du P. Feuillée et de M. Frezier aux routes et remarques geographiques de divers voyageurs. It is part of a two sheet map set: [Carte du Peru]. It was published sur le Quay de la Megisserie avec privilege du Roy in 1739. Scale [ca. 1:195,000]. Covers the territory of the former Inca Empire, South America. This layer is image 1 of 2 total images of the two sheet source map representing the northern portion of the map. Map in French and Spanish. The image inside the map neatline is georeferenced to the surface of the earth and fit to a non-standard 'World Sinusoidal' projection with the central meridian at 75 degrees west. All map collar and inset information is also available as part of the raster image, including any inset maps, profiles, statistical tables, directories, text, illustrations, index maps, legends, or other information associated with the principal map. This map shows features such as drainage, cities and other human settlements, territorial boundaries, shoreline features, and more. Relief shown pictorially. This layer is part of a selection of digitally scanned and georeferenced historic maps from the Harvard Map Collection and the Harvard University Library as part of the Open Collections Program at Harvard University project: Organizing Our World: Sponsored Exploration and Scientific Discovery in the Modern Age. Maps selected for the project correspond to various expeditions and represent a range of regions, originators, ground condition dates, scales, and purposes.

South America, 1779 (Raster Image)

This layer is a georeferenced raster image of the historic paper map entitled: Carte du Pérou et Brésil sepl. de Tierre - Firme, de Guayana, et de la rivière des Amazones : ce qui fait la partie boréale de L'Amérique Meridiole., par le sr. d'Anville. It was published by P. Santini, Chez M. Remondini in 1779. Scale [ca. 1:6,500,000]. Covers the northern part of South America. Map in French. The image inside the map neatline is georeferenced to the surface of the earth and fit to a non-standard 'World Sinusoidal' projection with the central meridian at 58.000000 degrees west. All map collar and inset information is also available as part of the raster image, including any inset maps, profiles, statistical tables, directories, text, illustrations, index maps, legends, or other information associated with the principal map. This map shows features such as drainage, cities and other human settlements, territorial boundaries, shoreline features, and more. Relief is shown pictorially. This layer is part of a selection of digitally scanned and georeferenced historic maps from the Harvard Map Collection and the Harvard University Library as part of the Open Collections Program at Harvard University project: Organizing Our World: Sponsored Exploration and Scientific Discovery in the Modern Age. Maps selected for the project correspond to various expeditions and represent a range of regions, originators, ground condition dates, scales, and purposes.

Peru and Bolivia, 1842 (Raster Image)

This layer is a georeferenced raster image of the historic paper map entitled: Peru & Bolivia. It was published by J. Arrowsmith 15 Febr. 1842. Scale [ca. 1:5,000,000]. Covers also parts of surrounding countries.The image inside the map neatline is georeferenced to the surface of the earth and fit to a non-standard 'World Sinusoidal' projection with the central meridian at 70.000000 degrees west. All map collar and inset information is also available as part of the raster image, including any inset maps, profiles, statistical tables, directories, text, illustrations, index maps, legends, or other information associated with the principal map. This map shows features such as drainage, cities and other human settlements, territorial boundaries, shoreline features, and more. Relief is shown by hachures. This layer is part of a selection of digitally scanned and georeferenced historic maps from the Harvard Map Collection and the Harvard University Library as part of the Open Collections Program at Harvard University project: Organizing Our World: Sponsored Exploration and Scientific Discovery in the Modern Age. Maps selected for the project correspond to various expeditions and represent a range of regions, originators, ground condition dates, scales, and purposes.

Suspended matter on the meridional section in the Laptev Sea in August-September 1991

Suspended matter concentration along a meridian section from the Lena River delta to 78°N (~500 km) at ten stations from the surface to the bottom was studied with weight and optical (light attenuation index) techniques. At seven stations average residence time of suspended matter in surface waters was determined by the disequilibrium 234Th method. Average residence time of suspended matter in other depth intervals was calculated by regression dependence between the 234Th/238U ratio and suspended matter concentration. Differential and integral fluxes of suspended matter in the water column were also calculated. Nepheloid matter dominates in suspended matter composition in surface waters. Calculations indicate that, before being buried on the bottom, solid river run-off is resuspended 2.3 times (aver.). Redistribution of nepheloid suspended matter in the near-bottom layer results in formation of a strongly pronounced depocentre - an area of maximal discharge of solid river run-off within the Laptev Sea.

(Table 1) Age determination of sediment core PS51/092-12

Diatom assemblages were employed to study temporal changes of Siberian river runoff on the Laptev Sea shelf. Using a correlation between freshwater diatoms (%) in core-top sediments and summer surface water salinities from the inner Kara Sea, salinity conditions were reconstructed for a site northeast of the Lena River Delta (present water depth 32 m) since 9 calendar years (cal) ka. The reconstruction indicate a strong, near-coastal, and river-influenced environment at the site until about 8.6 cal ka. Corroborated by comparison with other proxy records from further to the east, surface salinities increased from 9 to 14 until about 7.4 cal ka, owing to ongoing global sea level rise and synchronous southward shift of the coastline. Although riverine water became less influential at the site since then, salinities still varied between 12.5 and 15, particularly during the last 3.5 kyr. These more recent salinity fluctuations agree well with reconstructions from just north of the Lena Delta, emphasizing the strong linkage between shelf hydrography and riverine discharge patterns in Arctic Siberia.