cover image: Demand Analysis of Multiple Goods and Services in Vietnam (English)

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Demand Analysis of Multiple Goods and Services in Vietnam (English)

12 Oct 2021

In 1986 the Đổi Mới reform changed the economic and social policies in Vietnam, triggering steep economic growth and the shift from a low- to a middle-income economy. In parallel to the economic growth, Vietnam also experienced rapid social and demographic change, which resulted in modified consumption behavior. This paper estimates a Quadratic Almost Ideal Demand System, obtaining income and own- and cross-price elasticities for 10 groups of goods and services that can contribute to the further economic development of Vietnam. To control for potential bias generated by unobserved quality substitution and endogenous unit values, the analysis adopts an instrumental variable method. The results show that household equipment, clothing and accessories, telecommunication, transport, and medical and health services are responsive to income changes, while food, foodstuffs, beverages and tobacco, education, and electricity are income inelastic. Moreover, the analysis detects complementarity between education and the rest of the goods and services, and substitution between health care and household equipment, clothing, and telecommunication services. These results help in understanding recent socioeconomic development patterns in Vietnam and provide updated evidence to support business decisions and economic policy planning.
electricity health care system household survey household consumption state-owned enterprise gender and education income elasticity of demand price elasticity health care cost food and nutrition security trade and investment social health insurance demand analysis instrumental variable private health care household equipment measurement error access to basic service education and health ownership share type operations and maintenance household head share of children global supply chain consumption per capita market price demand for electricity rapid population growth employment in agriculture expenditure on food economic and social policy increase in income amount of investment demand for health care income change fresh fruit and vegetable supply chain actor income on health demand system international mobility of student expenditure elasticity cross-price elasticity price elasticity estimate code division multiple access average retail electricity price growth in energy consumption

Authors

Vigani,Mauro, Dudu,Hasan

Disclosure Date
2021/10/12
Disclosure Status
Disclosed
Doc Name
Demand Analysis of Multiple Goods and Services in Vietnam
Originating Unit
EFI-MTI-Global Macro and Debt (EMFMD)
Published in
United States of America
Series Name
Policy Research working paper; no. WPS 9803;
Total Volume(s)
1
Unit Owning
Off of Sr VP Dev Econ/Chief Econ (DECVP)
Version Type
Final
Volume No
1

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