Devolution is granting increased autonomy to Vietnam’s provincial governments. This coincides with the country’s continuing transition from a centrally planned to market economy. Heterogeneity in economic performance across provinces can be explained in part by variations in governance innovation, as enabled by this autonomy. This presentation examines this issue by testing the relationship between economic performance and governance innovation, the latter operationalized as effectiveness in dealing with central laws and creativity in solving business problems. Using PCI survey data and economic data from all 63 provinces over six years, the analysis finds a significant association between governance innovation and economic growth. In particular, the relatively stronger association in less industrialized provinces is theoretically noteworthy and has practical implications for developing economies.
October 20, 2016, 4:30pm. Department of City and Regional Planning, Cornell University. 115 W. Sibley Hall.