Publication:
Spatial interaction and the provincial economic structure transformation: Evidence from Vietnam
Spatial interaction and the provincial economic structure transformation: Evidence from Vietnam
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Date
2022
Authors
Bac Truong Cong
Hanh Vu Thi Kim
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Research Projects
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Abstract
Due to its crucial role in sustainable development, the economic structure transformation has attracted much attention at both national and provincial levels. For various reasons, the importance of regional linkages, especially spatial interaction in economic structure transformation, is not recognized and thus ignored in economic policies. This study addresses this literature gap with an empirical analysis of taking Vietnam as the study area and examines the impact of spatial interaction with metropolises on the provinces' economic structure transformation. To evaluate the impacts, this paper used Moran I statistic based on the geographic information extracted from GADM (Database of Global Administrative Areas) and the data of economic structure in the period from 2015-2018, collected from the General Statistics Office of Vietnam. The spatial panel data analysis is then performed to interpret spatial interaction influences on economic structure transformation extensively. The results show that the regional relationship can explain economic structure transformation by clustering economic activities in provinces. The spatial interaction with metropolises has positive effects on provinces' economic structure transformation. As such, stronger linkages with metropolises through investing in the transportation system, especially the infrastructure connecting areas, could also play a crucial role in reducing agricultural sector share in provinces' economic structure.
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Keywords
Spatial interaction,
spatial autocorrelation,
economic structure transformation,
metropolises,
Vietnam