Provincial Competitiveness Index (PCI) survey data and government economic data from Vietnam are used to examine the relationship between economic growth and two indicators of governance effectiveness: efficacy at working with central government drafted legislation and creativity in solving business problems. Examining all of Vietnam’s sixty-three provinces over eleven years (2007 to 2017), this study’s analysis finds a significant association between economic growth and both measures of governance effectiveness, with a stronger magnitude for more industrialized provinces. This finding suggests that efforts to improve governance effectiveness and creativity in less industrialized provinces may fail to have desired economic impact, pointing to deeper structural constraints.

https://muse.jhu.edu/pub/70/article/870556

Hartley, Kris and Aldag, Austin. (2022). “The Impact of Governance Effectiveness on Economic Growth: Insights from the Vietnam Provincial Competitiveness Index 2007-17.” Journal of Southeast Asian Economies, 39(2): 111-126.