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Sources of Growth and Structural Change in the Vietnamese Economy, 1996–2003: A Computable General Equilibrium Analysis

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We use the MONASH-VN model, a dynamic computable general equilibrium model of the Vietnamese economy, to investigate Vietnam's rapid growth and structural change over the period 1996 to 2003. We do this in two steps. First, we estimate changes in variables representing production technologies, consumer preferences, government policy and other structural features of the economy. Movements in these structural and policy variables are then used to explain the recent history of Vietnam's rapid growth and structural change. We find the most important sources of growth and change to be technical improvements, favorable shifts in foreign demand for Vietnamese goods and employment growth. Other important factors include movement in household preferences away from primary products and towards manufactures and services, expansion in agricultural land supply, and tax reform.
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Keywords: C68; D58; F14; O12; Vietnamese economy; computable general equilibrium model; growth; structural change

Document Type: Research Article

Affiliations: Centre of Policy Studies, Monash University, Clayton, Victoria 3800, Australia

Publication date: June 1, 2009

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