ORIGINAL MANUSCRIPT
Corruption impacting regional economic growth: A dynamic panel data analysis for the case of Vietnam
Hoa T. Truong,
Corresponding Author
Hoa T. Truong
Faculty of Economics, Ho Chi Minh City University of Technology and Education, Ho Chi Minh city, Vietnam
Graduate School of Asia-Pacific Studies, Waseda University, Tokyo, Japan
Correspondence
Hoa T. Truong, Faculty of Economics, Ho Chi Minh City University of Technology and Education, Ho Chi Minh city, Vietnam
Email: hoatruong@toki.waseda.jp; hoatrt@hcmute.edu.vn
Search for more papers by this authorHoa T. Truong,
Corresponding Author
Hoa T. Truong
Faculty of Economics, Ho Chi Minh City University of Technology and Education, Ho Chi Minh city, Vietnam
Graduate School of Asia-Pacific Studies, Waseda University, Tokyo, Japan
Correspondence
Hoa T. Truong, Faculty of Economics, Ho Chi Minh City University of Technology and Education, Ho Chi Minh city, Vietnam
Email: hoatruong@toki.waseda.jp; hoatrt@hcmute.edu.vn
Search for more papers by this authorAbstract
This study analyses the effects of corruption on Vietnamese provinces and cities’ economic growth using a dynamic panel data analysis with a system generalized method of moments approach. Although this study investigates both the direct and indirect effects of corruption, it focuses more on the direct effects. The estimation results consistently support the assertion that, in general, corruption is detrimental to economic growth. Disaggregating this total effect, however, reveals more noteworthy issues in the Vietnamese context. Corruption directly impedes growth rates by reducing the efficiency of investments, and this effect is more intense in provinces and cities with higher investment rates. However, the adverse direct impact of corruption may be alleviated by its positive impact on investment rates, which is an unexpected finding.
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