Household Income Determination in Vietnam: A Structural Analysis with Implications for Market Reform

Tarp, Finn and Roland-Holst, David (2002): Household Income Determination in Vietnam: A Structural Analysis with Implications for Market Reform. Published in:

Abstract

Over two-thirds of Vietnam’s population reside in the rural sector, and recent economic reform initiatives may not realize their full potential to benefit the rural sector if rural links to the rest of the economy are too weak. In this paper, we demonstrate how multiplier decomposition methods can elucidate the complexities of income determination, and in particular the prominent role played by indirect linkages that depend upon market interation. Techniques like this can help identify opportunities for policy makers to facilitate economic integration and more widely propagate the benefits of economic reform and growth.

• Item Type: MPRA Paper
• Language: English
• Keywords: Household Income Determination in Vietnam
• Subjects: D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis

References

Defourny, J. and Thorbecke, E. (1984), "Structural Path Analysis and Multiplier Decomposition within a Social Accounting Matrix." Economic Journal, vol. 94, n. 373, pp. 111-136.

Gazon, J. (1979), "Une nouvelle methodologie: l'approache structurale de l'influence économique." Economie Appliquée, vol. 32, n. 2-3, pp. 301-337.

Lantner, R. (1974), Theorie de la dominance économique. Dunod, Paris.

Leontief, W. (1953), Studies in the Structure of the American Economy, Oxford University Press, New York.

Pyatt, G. (1985), "Commodity balances and national accounts: a SAM perspective,"Review of Income and Wealth, Series 31, No. 1.

Pyatt, G., and J. I. Round (1979), "Accounting and fixed price multipliers in a social accounting matrix framework," Economic Journal, 89, 850-873.

Pyatt, G. and J. Round (eds.) (1985), Social Accounting Matrices: A Basis for Planning, The World Bank, Washington, D.C..

Rand, John, David Roland-Holst, and Finn Tarp (2002), A 2000 Social Accounting Matrix for Vietnam, CIEM, Hanoi.

Reinert, K. A. and D. Roland-Holst (1993), "Social accounting Matrices for Trade Policy Modeling," in J.F. Francois and K.A. Reinert, eds., Applied Trade Policy Modeling, Cambridge: Cambridge University Press, forthcoming.

Roland-Holst, D. (1990), "Interindustry Analysis from a Social Accounting Perspective,"Economic Systems Research, 2:2.

Roland-Holst, D., and D. van der Mensbrugghe (1992), Manual for the MATS Software, Berkeley Economic Advising and Research, Berkeley.

Round, Jeffrey I. (1985), "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, 95: 383-99.

Stone, R. (1981), Aspects of Economic and Social Modelling, No. 126, Librairie Druz, Geneva.