1Le Hoang Ngan, 2Nguyen Anh Tung,3Dam Nhat Minh, 4Phi Cam Ly
1,2,3,4Faculty of environment, climate change and urban studies, National Economics University, 207 Giai Phong Road, Ha Noi, VietNam
DOI : https://doi.org/10.47191/ijmra/v8-i03-22Google Scholar Download Pdf
ABSTRACT:
This study analyzes the impact of urbanization on income inequality in Vietnam using panel data regression methods, specifically applying the Random Effects Model (REM) and Feasible Generalized Least Squares (FGLS) to assess the effects of urbanization on income inequality. The dataset comprises information from 63 provinces and cities in Vietnam from 2013 to 2023, ensuring the study's feasibility and reliability by capturing diverse socio-economic characteristics. The estimation results indicate an inverted U-shaped relationship between urbanization and income inequality. In the initial stages, urbanization increases income inequality; however, after surpassing a certain threshold, further urbanization helps reduce inequality. Based on these findings, the authors propose relevant policy implications to mitigate income inequality at different stages of urbanization across localities.
KEYWORDS:Urbanization, income inequality, inverted U-shaped relationship, Kuznets.
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Volume 08 Issue 03 March 2025
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