Trade and Income Growth in Vietnam: Estimates from a New Social Accounting Matrix

Economic Systems Research 14(2):157-184. DOI: 10.1080/09535310220140951

Posted: 13 Dec 2014

See all articles by Finn Tarp

Finn Tarp

University of Copenhagen - Department of Economics

John Rand

University of Copenhagen - Department of Economics

David Roland-Holst

University of California, Berkeley

Date Written: February 2002

Abstract

Economic reforms and greater outward orientation are giving rise to extensive structural change in the Vietnamese economy. Because of the leverage that global markets can exert on an emerging economy, such adjustments will be particularly significant in the composition of domestic supply and demand. As domestic protection levels are reduced and external market access increases, trade growth and shifting trade patterns will have pervasive effects on income distribution in Vietnam. In this paper, we use a newly estimated Vietnam social accounting matrix to elucidate the links between trade and income in the country. With matrix decomposition methods, we show how the Vietnamese economy propagates the direct effects of external demand across the spectrum of domestic activities, factors, and households. This detailed analysis provides a blueprint for policies to improve economic participation of activities and households with relatively weak linkages to the rest of the economy.

Suggested Citation

Tarp, Finn and Rand, John and Roland-Holst, David, Trade and Income Growth in Vietnam: Estimates from a New Social Accounting Matrix (February 2002). Economic Systems Research 14(2):157-184. DOI: 10.1080/09535310220140951 , Available at SSRN: https://ssrn.com/abstract=2537705

Finn Tarp (Contact Author)

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

John Rand

University of Copenhagen - Department of Economics ( email )

Øster Farimagsgade 5
Bygning 26
1353 Copenhagen K.
Denmark

David Roland-Holst

University of California, Berkeley ( email )

310 Barrows Hall
Berkeley, CA 94720
United States

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