The Institutional Root Causes of the Challenges to Vietnam's Long-Term Economic Growth

2014 ◽  
Vol 13 (1) ◽  
pp. 159-189 ◽  
Author(s):  
Khuong M. Vu
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Public Management ◽  
Global Economy ◽  
Dominant Role ◽  
High Growth ◽  
Institutional Reforms ◽  
Role Of The State ◽  
Management Capabilities

Vietnam has achieved impressive economic growth since the dramatic deepening of its economic reforms in March 1989. Although Vietnam's achievements are laudable, the economy appears to face increasingly serious challenges to sustained, robust economic performance in the long term. This paper analyzes Vietnam's economic growth to identify the institutional root causes that will make it difficult for Vietnam to sustain its high growth rates. There are three categories of institutional root causes—economic, administrative, and political—and these three categories are interrelated and mutually reinforcing. The economic institutional weaknesses are the absence of an independent central bank and the dominant role of the state-owned sector. The administrative institutional limitation is the lack of public management capabilities; and the political institutional limitation is the absolute monopolization of power by the Communist Party of Vietnam. I contend that without fundamental institutional reforms, Vietnam will not only be unable to achieve robust economic performance in the long term but also be at risk of experiencing a severe crisis when the regional or global economy experiences a severe shock in the future.

scholarly journals Cointegration Entre Corruption Et Croissance Economique A Travers Le Canal De L’investissement : Evidence Empirique Moyennant L’approche ‘’ARDL Bound Testing’’ Dans Le Cas De La Tunisie

2016 ◽  
Vol 12 (16) ◽  
pp. 424
Author(s):  
Badry Hechmy
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Large Scale ◽  
Public Investment ◽  
Institutional Reforms ◽  
Real Gdp ◽  
The Relationship

This study focuses on the relationship between corruption and economic growth in Tunisia from 1987 to 2013, and is mainly interested in the role of discretion and distortion in public spending. To explore the relationship between the variables of interest, ARDL Bound testing approach of Pesaran and Shin (1999) was used. The empirical results show that corruption negatively affects long-term economic performance. And suggest that public investment large scale is not necessarily desirable in an environment characterized by corruption, because it results in a waste of public funds. However the estimation of an ECM model of short-term dynamics shows that corruption is associated with an increase in real GDP per head. The results support the idea that corruption undermines long-term economic performance and call for institutional reforms to improve the quality of governance as a prerequisite for extensive economic growth.

The Second Start of Transformation in Ukraine?

2014 ◽  
pp. 30-52 ◽  
Author(s):  
L. Grigoryev ◽  
E. Buryak ◽  
A. Golyashev
Keyword(s):  
Economic Growth ◽  
Armed Conflict ◽  
Political Crisis ◽  
Investment Climate ◽  
Institutional Reforms ◽  
Personal Consumption ◽  
Governance Quality ◽  
Political Turmoil

The Ukrainian socio-economic crisis has been developing for years and resulted in the open socio-political turmoil and armed conflict. The Ukrainian population didn’t meet objectives of the post-Soviet transformation, and people were disillusioned for years, losing trust in the state and the Future. The role of workers’ remittances in the Ukrainian economy is underestimated, since the personal consumption and stability depend strongly on them. Social inequality, oligarchic control of key national assets contributed to instability as well as regional disparity, aggravated by identity differences. Economic growth is slow due to a long-term underinvestment, and prospects of improvement are dependent on some difficult institutional reforms, macro stability, open external markets and the elites’ consensus. Recovering after socio-economic and political crisis will need not merely time, but also governance quality improvement, institutions reform, the investment climate revival - that can be attributed as the second transformation in Ukraine.

scholarly journals Investigating Investment, Inflation, Trade-Openness and Economic Progress Nexus for Pakistan

2020 ◽  
Vol V (IV) ◽  
pp. 1-9
Author(s):  
Aftab Anwar ◽  
Muhammad Masood Anwar ◽  
Ghulam Yahya Khan
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Trade Openness ◽  
Short Term ◽  
Economic Progress ◽  
Critical Measure ◽  
Selection Of Variables ◽  
Guide Lines ◽  
Selection Of

Since inflation and trade openness rate are considered as critical measure of an economy's health. This article analyze the relation of Economic growth with Investment, Inflation and Trade Openness of Pakistan for 1970- 2019. The policy guide lines from analysis include promotion of policies to increase Investment and Trade-openness in short and long-terms. The study used ARDL bound-testing for long-term and Un-Restricted-Error Correction techniques to discover short-term interrelation amongst a selection of variables. Results of study revealed inflation negatively related to economic performance and positively linked to Investment and Trade-Openness. Findings of enquiry suggested government should focus more on investment friendly policies in the country.

“Reform and Openness”: Why China's Economic Reforms Have Delayed Democracy

2002 ◽  
Vol 54 (3) ◽  
pp. 338-372 ◽  
Author(s):  
Mary E. Gallagher
Keyword(s):  
Economic Growth ◽  
Comparative Analysis ◽  
Communist Party ◽  
Global Economy ◽  
High Growth ◽  
Political Liberalization ◽  
Rapid Economic Growth ◽  
Key Factor ◽  
Rapid Pace ◽  
East Asian Economies

Most theories that seek to explain democratization look to changes in the economy as the precursor to significant political liberalization, locating the main causal factor in either severe economic crisis or rapid economic growth. In the Chinese context, by contrast, the Communist Party has extricated itself from the socialist social contract with the urban working class without losing its grip on political power. Moreover, China has maintained a rapid pace of economic growth for over twenty-five years without significant political liberalization. Comparative analysis of China's post-1978 reform policies yields insights both across types of socialist transition, comparing China with Eastern Europe and Russia, and across time, comparing China with other high-growth East Asian economies. A key factor in China's ability to reform the economy without sacrificing political control is the timing and sequencing of its foreign direct investment (FDl) liberalization. There are two key variables that are important to this comparative analysis: China's pattern of ownership diversification and China's mode of integration into the global economy. The article relates these two variables to the success of economic change without political liberalization, in particular, how FDI liberalization has affected relations between workers and the ruling Communist Party. “Reform and openness” in this context resulted in a strengthened Chinese state, a weakened civil society (especially labor), and a delay in political liberalization.

scholarly journals Dissecting Economic Growth in Uruguay

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Natasha Che
Keyword(s):  
Economic Growth ◽  
High Growth ◽  
Income Level ◽  
Growth Prospect ◽  
Structural Indicators

Uruguay experienced one of its biggest economic booms in history during 2004-2014. Since then, growth has come down significantly. The paper investigates the various causes of the boom and discusses the sustainability of these causes. It then compares Uruguay against high-growth countries that were once at a similar income level, across a broad set of structural indicators, to identify priority reform areas that could improve long-term growth prospect.

scholarly journals Economic Growth and the Public Sector: A Comparison of Canada and Italy, 1870-2013

2018 ◽  
Vol 10 (3) ◽  
pp. 221-243
Author(s):  
Livio Di Matteo ◽  
Thomas Barbiero
Keyword(s):  
Economic Growth ◽  
Public Sector ◽  
Economic Performance ◽  
Government Spending ◽  
Central Government ◽  
Government Size ◽  
Size Of Government ◽  
The Public ◽  
Economic Stagnation

There is considerable evidence that the size of the public sector can influence an economy’s rate of economic growth. We investigate public sector spending of central governments and economic performance in two G7 countries over the long-term, Canada and Italy. Their economic performance has diverged in the last 25 years and it is worth investigating whether the size of government was a contributing factor. We find that in both the case of Canada and Italy the size of central government spending directly affects the performance of their economies in an inverse U-shaped relationship known as a Scully/BARS Curve. These results suggest that along with modifying current central government size, other levels of governments may need to shrink their own spending. The fact that the amount spent by government on pensions as a percentage of GDP in Italy is nearly 4 times that in Canada may partly explain the higher level of Italy’s public debt as well as an indirect contributing factor to economic stagnation in the last 25 years.

scholarly journals Innovative Business Models and Varieties of Capitalism: Financialization of the U.S. Corporation

2010 ◽  
Vol 84 (4) ◽  
pp. 675-702 ◽  
Author(s):  
William Lazonick
Keyword(s):  
Economic Growth ◽  
Business Model ◽  
Economic Performance ◽  
Business Models ◽  
New Paradigm ◽  
Executive Pay ◽  
Old Economy ◽  
Stock Buybacks ◽  
The U.S

How does economic organization affect economic performance? This analysis of the historical transformation of the U.S. economy from the business model of the “old economy” to that of the “new economy” demonstrates that the Japanese challenge of the 1980s was an important catalyst for the shift. Anchored by the “Chandlerian” corporation, the old model delivered economic growth that was much more equitable and stable than the new one. Furthermore, the business model that underpinned the Japanese challenge represented a superior version of the old U.S. prototype. The fi nancialization of corporate decision-making under the new paradigm has been the prime source of inequity and instability in U.S. economic performance over the past three decades. As manifested in outsized executive pay and massive stock buybacks, the fi nancialization of the U.S. corporation threatens long-term economic growth.

The Quality of Government and Economic Growth

2021 ◽  
pp. 358-377
Author(s):  
Pelle Ahlerup ◽  
Thushyanthan Baskaran ◽  
Arne Bigsten
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
High Growth ◽  
Economic Life ◽  
Cultural Norms ◽  
Limited Evidence ◽  
Institutional Challenges ◽  
The Relationship

This chapter reviews the literature on the relationship between the quality of government (QoG) and economic growth. As there is limited evidence on the link between QoG narrowly defined and growth, our focus is on the role of related aspects, such as democracy, formal institutions, and cultural norms. We discuss institutional challenges in generating and sustaining high growth rates. We then review the evidence on how QoG, and related aspects of political and economic life, affect growth and pay attention to the relevant channels. We also discuss whether it is harder to sustain growth if it increases inequality. Since a government needs to be both efficient and impartial to support aggregate economic performance, we argue that it is too strict to let QoG be defined as impartiality only.

Fifty Years of Development in the Singapore Economy: An Introductory Review

2015 ◽  
Vol 60 (03) ◽  
pp. 1502002 ◽  
Author(s):  
Linda Y. C. Lim
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Social Welfare ◽  
Low Income ◽  
Dominant Role ◽  
Social Needs ◽  
Vulnerable Groups ◽  
Economic Policies ◽  
Role Of The State ◽  
Introductory Review

The papers in this volume provide a retrospective analysis of Singapore's economic development during the past 50 years, from the perspectives of different policy domains. This introductory review highlights common themes among the papers, chiefly the primacy of economic growth in driving social as well as economic policies, the interconnection between different policy arenas, the persistence of a particular development model despite sharp changes in policy direction, and the dominant role of the state. The authors collectively conclude that economic policy was both innovative and effective in the first two to three decades of independence, particularly in simultaneously delivering on both rapid economic growth and improved social welfare. In more recent decades, economic growth and social welfare for a significant minority of residents have begun to diverge. Looking ahead, there appears to be a consensus that slower GDP growth, higher productivity, a relative shift from manufacturing to services and from a global to a regional market orientation, and more vibrant and innovative local private entrepreneurs, are necessary for continued economic development. There is also consensus that public policy must pay greater attention to directly meeting the growing social needs of the population, especially the poor, low-income, elderly and other vulnerable groups.

scholarly journals Recent Indonesian Economic Development and the Urgent Need to Remove Key Growth Obstacles

2012 ◽  
Vol 11 (3) ◽  
pp. 57-77 ◽  
Author(s):  
Arianto A. Patunru ◽  
Tarsidin
Keyword(s):  
Economic Growth ◽  
Financial Crisis ◽  
Economic Performance ◽  
Global Financial Crisis ◽  
High Growth ◽  
Asian Financial Crisis ◽  
Drop Out ◽  
Growth Spurt ◽  
The Face ◽  
Bounce Back

Turbulence has been the hallmark of the course of Indonesian economic growth. Indonesia was dubbed a “chronic drop-out” in economic performance in 1968, but it then immediately embarked on a growth spurt. Just as accolades to Indonesia's economic pragmatism and economic orthodoxy were reaching a new height, Indonesia's economy shattered during the Asian financial crisis of 1997–99. Indonesia has once again risen phoenix-like from that disaster, and the bounce back has been resilient in the face of the 2008 global financial crisis. Despite the commendable progress, however, its growth seems to be hindered. Indonesia must now tackle the two most important constraints to its continued high growth: logistics and infrastructure.

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