Summary of PhD thesis in development Economics: Impacts of institutions on multidimensional poverty in Vietnam

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INTRODUCTION

1. The reason for choosing the topic

democratic society where the rule of law governs all social interactions” (World Bank, 2016). Though institution is claimed to be a pivotal factor in economic development (covering poverty reduction), research on poverty in Vietnam has just concluded on economic factors such as economic growth or income distribution as the main factors, and less mentioned about the roles and impacts of institutions. If any, they only review the Government’s policies in poverty reduction. Poverty is a multidimensional issue, which has been confirmed in many earlier researches, typically the World Bank (2000) study listed the main manifestations for poverty as: (i) income poverty; (ii) inaccessibility to essential services such as health and education; (iii) vulnerability; and (iv) voicelessness and powerlessness.

In view of above arguments, the research on impacts of institutions on multidimensional poverty in Vietnam become important to both theoretical research and policy practice. There are many questions incurred from the research on impacts, to specify: (i) whether institution creates positive impacts to the multidimensional poverty reduction in Vietnam while the connotation of multidimensional poverty and its criteria are not fixed; (ii) Is the institutional impacts on multidimensional poverty consistent to different provinces and regions in the nation; and (iii) The biggest question is how to structure a policy system to respond to the multidimensional nature of poverty? In the context of research in Vietnam, this research is totally unique for 2 reasons: (i) for the dimensions with limitations, the author realizes that there are very few research on the impacts of institutions on poverty reduction (as mentioned later in the Overview); (ii) most of the research available in Vietnam on this relation just measures poverty at the unidimensional approach (mostly are about income).

For these reasons, the research thesis on “Impacts of institutions on multidimensional poverty in Vietnam” is necessary.

2. Research thesis objectives and questions

Poverty alleviation and progressive poverty eradication are among the ultimate goals of nations’ development and prosperity. But the outcome of multidimensional poverty reduction varies from countries to countries, the results of multidimensional poverty reduction are different amongst countries due to many factors influencing the multidimensional poverty reduction and its results. The factors are suggested to be categorized as follows: (i) the factors that derive from the poor themselves, when the poor get more supports from the multidimension of poverty, the multidimensional poverty reduces; (ii) the economic growth factors (Dollar và Kraay, 2002). This theory claims that economic growth creates resources that help poverty reduction. However, according to Maddison (1995), the factors behind the growth which are institutions and policies are forgotten, or regarding Solow (2001), it is claimed to be non-technical unmeasurable factors in manufactory including institutions;(iii) the third group of factors is institution which determines the countries’ prosperity, not growth (Kaufmann et al (2012), North (1973, 1990), Mancur and Olson (1965)). There have been numerous researches that confirm to have a specific relation between institutions’ impacts and how each aspects of institutions influence poverty.

in Vietnam, seek for bottlenecks on institutional in

2.1. Objectives Overall objectives: the thesis contributes to a comprehensive scientific foundation (theory and practice) on impacts of institutions on multidimensional poverty impacts on multidimensional poverty and their reasons, therefore to recommend solutions to reduce multidimensional poverty from institutional perspectives. The overall objectives are broken down into:

- Theory:

The focus of Vietnam on both fields, institutions and poverty, is its decision to measure the poverty with multidimensional poverty line, which also shows a breakthrough institutional reform. Since “Socio-Economic Development Strategy for the period 2011-2020”, Vietnam identify “reform and institutional reform are one out of three strategic breakthroughs to end poverty and approach to a prosperous society”. Institutional completeness is also a long- term vision of Vietnam’s development pathway to 2035: “Looking toward 2035, a modern, prosperous Vietnam will rest on three pillars – a stage that sets, enforces, and abides by law, a full-fledged market economy, and an evolved

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the thesis considers how institution and institutional indicators will affect poverty with the multidimensional approach in Vietnam. Firstly, the thesis systemizes theories on institutional impacts on multidimensional poverty, from which to complete the research reasoning on institutional impacts on multidimensional poverty. 3.2. Scope of research Secondly, the thesis completes the approach and method to measure a. Content scope institutional impacts on multidimensional poverty.

Thirdly, it systemizes the factors that influence institutional impacts on multidimensional poverty. Institution and poverty are multidimensional, adding to that, domestic and international research on impacts of institution on multidimensional poverty are new and have their limitations, therefore, the thesis focus to cover: - Practice:

Firstly, assess situation of institution and multidimensional poverty, as well as assess factors that affect the institution of multidimensional poverty.

Secondly, assess the impacts of institution on multidimensional poverty in Vietnam, from which to identify direct factors that cause problems of institutional impacts on multidimensional poverty in Vietnam in recent time. Firstly, there are two categories of institutions that are formal institutions and informal institutions (North, 1990), however, the approach of multidimensional poverty has just been applied to the context of Vietnam since 2016, therefore, the assessment of the impact of institutions on multidimensional poverty is quite new, thus, the thesis chooses to study the institution in the aspect of 'formal institutions', thereby making recommendations for institutional reforms towards multidimensional poverty reduction.

Thirdly, recommend ideas and orientation for institutional impacts on multidimensional poverty with the foundation of solving current problems of institutional impacts on multidimensional poverty in recent time.

Secondly, institutions affect multidimensional poverty through two channels (i) direct and (ii) indirect, through economic growth and income distribution. However, the thesis only focuses on studying the impact of institutions on multidimensional poverty through "direct channels".

Fourthly, recommend solutions to reduce multidimensional poverty in the approach of institution by solving the causes of current institutional impact problems in recent time, together with forecast of new factors and context that may affect the institutional impacts on multidimensional poverty.

2.2. Thesis research questions

To reach the research goal, the thesis focuses on answering the following research questions:

1. How does institution impact on multidimensional poverty in Vietnam? 2. In different regions, how does institution impact on multidimensional poverty in different provinces with different levels of development.

3. How does each aspect of institution now impact on multidimensional poverty? 3. Research subjects and scope Thirdly, when evaluating formal institutions, international research mostly mentioned aspects of (i) accountability; (ii) policy effectiveness; (iii) control of corruption and (iv) bureaucratic quality. Considering the suitability of these formal institutional aspects with the official institutional assessment data set in Vietnam, the thesis sees similarities with 6 aspects (i) Participation at Local Levels; (ii) Transparency; (iii) Vertical Accountability; (iv) Control of Corruption; (v) Public Administrative Procedures and (vi) Public Service Delivery, these aspects are covered in the PAPI index conducted by the Vietnam Provincial Governance and Public Administration Performance Survey. Therefore, the thesis uses PAPI index as a measure to evaluate the formal institutions in Vietnam. 3.1. Research subjects b. Scope of space and timeline

The thesis concentrates on assessing and analyzing the impacts of institution on multidimensional in Vietnam. With poverty reduction as the goal,

- Scope of space: the thesis studies the impact of institutions on multidimensional poverty at the local level (at the provincial level) in the country. The reason why the thesis chooses the local level is because the

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PAPI index measures the institution (efficiency of governance and public administration) at the provincial level. Besides, in the model used to assess the institutional impacts on multidimensional poverty, the thesis uses variables with the characteristics of the province.

- Scope of timeline: the thesis researches on the status of impacts of institutional on multidimensional poverty in the 2016-2018 period, because the poverty line with multi-dimensional access in Vietnam has just been issued under Decision 59/2015 / QD-TTg of the Prime Minister signed on November 19, 2015, applicable for the period 2016 - 2020. However, regarding the current state of institutions in Vietnam, the thesis uses longer- term data sets in analysis and evaluation. However, regarding the current state of institutions in Vietnam, the thesis uses longer-term data sets in analysis and evaluation. In order to achieve the research objectives and answer the research questions, the thesis has carried out the research process as follows: (1) Overview of research to find research gaps. (2) Based on a literature review and consultation of experts, the thesis complete theoretical basis of the impact of institutions on multidimensional poverty. (3) Collect information to assess the situation of institutions, multidimensional poverty and the situation of impact of institutions on multidimensional poverty. Data that the thesis uses are collected from secondary data sources and raw (primary) data sources. (4) Analyzing the situation of institutions, multidimensional poverty and the situation of impacts of institutions on multidimensional poverty. On that basis, to draw the achieved points, the problems related to the impact of institutions on multidimensional poverty in Vietnam. (5) Proposing views, orientations and solutions to enhance the institutional impacts on multidimensional poverty in Vietnam. 4. Research approach and process 5. The contributions of the Phd Dissertation 4.1. Research approach The thesis has the following new contributions: The thesis approaches from theory to practice, combining qualitative and Theoretical Contributions quantitative research to solve problems, as follows:

First, to study institutional impacts on multi-dimensional poverty, this dissertation applies a holistic and distinctive approach compared to the existing scholarly literature in one-dimensional poverty. On the one hand, this research is in line with the mainstream approach of poverty, it addresses theoretical voids and offers policy implications compatible with multi-dimensional poverty reduction strategy of Vietnam over the period 2021-2030, on the other.

+ The thesis reviews domestic and international documents to build theoretical frameworks on the impact of institutions on multidimensional poverty. On that basis, the thesis analyzes the status of the institutional impacts on multidimensional poverty in Vietnam in recent years, the results achieved, the existing problems and the causes of that problems, thence, propose solutions to enhance the impact of institution on multidimensional poverty to reduce multidimensional poverty in the coming period.

Further, while the extant academic works often study the impacts of institutional components (actors, ‘rule of the game’, mechanism, to name a few) on poverty reduction, the present dissertation considers PAPI the outcome of institutions and thus applies it to examine institutional impacts on multi- dimensional poverty. This approach allows the researcher to scrutinize the general institutional impacts on multi-dimensional poverty. + A qualitative approach is used in (i) identifying channels of institutional impacts on multidimensional poverty; (ii) analysis of experts' opinion on the selection of institutional indicators in assessing the impact of institutions on multidimensional poverty and factors affecting this impact.

Third, the econometric model that is composed of PAPI sub-indices as representative variables of institutions profoundly and rigorously estimates the impacts of institution on multi-dimensional poverty. + The quantitative approach is used to select and build models that are used to assess the impact of institution and each aspect of institutions as well as local institutions with different development level on multidimensional poverty. Research Findings and Recommendations 4.2. Research Process

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to policy making process, and organization of

Next, the empirical research results include: (i) the institutional impacts on multi-dimensional poverty are diverse among localities; (ii) There exists a negative relationship between institution and multi-dimensional poverty reduction in urban areas and high-income provinces; (iii) institution-specific aspects (transparency and accountability) impose negative effects on multi- dimensional poverty reduction. in particular. Many studies confirmed the correlation between poverty and the local institutions and other specific measures of institutions such as factors the policies related implementation. Additionally, most of these studies suggest that good institutions in overall will bring positive effect on poverty reduction, while specific aspects of institutions (through institutional metrics) have different effects on poverty reduction.

1.2. Past research on institution

Finally, the research findings provide a strong basis for the policy implications targeting institutional improvements in multi-dimensional poverty alleviation, as follows: (i) Strengthening institutional reform toward sustainable poverty reduction on the basis of the local uniqueness of provinces; (ii) Revision of multi-dimensional poverty reduction policies in the ways in which they not only concentrate on ‘the most deprived’ (the poor and rural areas), but also take into account the multi-dimensional poverty reduction policies in non- poor localities and urban areas where are in need of suitable institutions.

6. The structure of the thesis There are many studies on the content of the institution that are reviewed in the research of the thesis. There are 3 historical lines of research on institutions: (1) Institutions as rules and laws; (2) Institutions to be considered from the perspective of organization; and (3) The institution that includes the above two factors; rules and organizations ("rules of the game" and "players"). It can be seen that domestic and foreign studies all say that institutions include "rules of the game – rules and laws", "players - organizations" and the additional part is "how to play". In addition to the introduction, conclusion, list of tables and references, the thesis is presented in 5 chapters with the following structure: 1.3. Past research on the impacts of institution on multidimensional poverty Chapter 1: Literature Review

Chapter 2: Theoretical Framework Of Impacts Of Institutions On Multidimensional Poverty

Chapter 3: Research Model And Methods

Chapter 4: The Situation Of Impacts Of Institutions On Multidimensional Poverty In Vietnam

Chapter 5: Solutions To Increase The Impact Of Institutions On Multidimensional Poverty In Vietnam In recent years, there have been many debated studies considering whether institutions have impacts on poverty reduction and if so, whether the impact is positive or negative, direct or indirect. Majority of the papers suggested that institutions play an important role in national poverty reduction outcomes. Many of them used different institutional metrics which can result in different effects on poverty reduction. Additionally, there are several studies concluded that good institutions have no impact on poverty reduction in the short term, but in the long run it can bring a positive effect.

CHAPTER 1: LITERATURE REVIEW

1.1. Past research on multidimensional poverty

Thus, with the diversity in the institutional assessment measures as well as the impact assessment methods, the literature results are relatively similar when it comes to the overall conclusion that good institutions will positively contribute to poverty reduction. But with different development conditions and contexts, specific aspects of a good institution will have different impacts on the goal of poverty reduction. Since then, it is essential to verify the specific

The thesis has reviewed domestic and international studies according to the following groups of issues: (i) the conceptualization of multidimensional poverty; (ii) factors affecting poverty in general and multidimensional poverty

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1.4.2. Other issues and research gap impact of institutions on poverty in the context of a transitional economy like Vietnam.

1.4. General reviews of the literature

1.4.1. The primary issues addressed in the literature Although there have been many issues mentioned in the literature review, in the research perspective of the thesis, there are still many points that have not been mentioned, thereby this thesis identified and attempted to solve several research gaps.

First, the implications of institutions on poverty are debatable. As indicated in the literature review, there are several studies concluded that institutions play an important role in poverty reduction. Yet there are also many studies showed that the role of institutions is still relatively weak in implementing the poverty reduction activities, in some cases, it even made the poverty more severe.

First, majority of the literature were conducted to address the theoretical issues of institutions and poverty. Regarding poverty, all studies have shown that the issues of fighting and eliminating poverty is one of the goals that need to be addressed in the development process of any country. In terms of institutions, the concept of institutions is agreed to be defined as the rules "of a game" through which people and the authorities act as "players" to follow all the rules. Furthermore, the literature has shown the role of institutions in regulating people and community behaviors. Additionally, institutions also contribute to protecting the individual "safe zone", preventing and resolving economic and social conflicts.

the nature of poverty has been confirmed Second, the literature has given specific measures of institutional quality assessment. From a general perspective, these metrics are scientifically built and synthesized from reliable data sources, which led to significant findings. In addition, in each specific condition, the scholars have used this set of measures flexibly in analyzing the impact of institutions on poverty or some other aspects such as economic growth. Second, although there are many studies on the impact of institutions on poverty, not many of them were carried out for the context of Vietnam, especially in case of using the criteria of poverty measurement in terms of a multidimensional approach. Most of the above studies focused on measuring the impact of institutions on poverty, yet from the perspective of income approaches. However, this poverty measure does not clearly reflect the picture of poverty, rather to be multidimensional (World Bank, 2000; UNDP, 2010).

Third, the literature has shown that institutions have an impact on poverty in specific aspects: (1) institutions impact poverty through institutional aggregate indexes measurement; (2) each aspect of institutions affects poverty and (3) institutions affect each aspect of multidimensional poverty such as education and health. Third, many indicators to measure institutions have been introduced, yet none of them are clearly appropriate when measuring the impact of institutions on multidimensional poverty in the context of a rapid transitional country like Vietnam which is said by Acemoglu et al. (2013) as the phenomenon of "Institutional drift".

Fourth, regarding the models and estimation methods for the impact of institutions on poverty, they are not only limited by focusing on the single- dimensional poverty approach as mentioned above but also have been mainly being used to study at the national level. From the literature review, it can be seen that there were very few researches carried out based on a local area within a country. The thesis is one of the first studies conducted in this scope. In addition, most of the research models obtained from the review require relatively large dataset over many years, however, since the introduction of the Fourth, to assess the impact of institutions on poverty, many studies have used certain estimation methods such as ordinary least squares (OLS), percentile regression methods or generalized method of moments (GMM) to evaluate the impact of institutions on poverty. The results from the estimation models all show that good institutions help reduce poverty. In addition, there have been many studies that concentrated on the impacts of each aspect of the institution on poverty reduction. However, with different development conditions and circumstances, the impact of each aspect of the institution on the poverty reduction also differs between countries, or countries in different stages of development.

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2.1. Multidimensional poverty

2.1.1. Conceptualization of multidimensional poverty

multi-dimensional poverty assessment approach has been established in Vietnam for five years (since 2016), multidimensional poverty data in the country are relatively limited. Therefore, these models are difficult to apply in assessing the impact of institutions on multidimensional poverty in Vietnam. Nevertheless, the thesis found a new and more appropriate approach in the context of limited data in Vietnam.

The international views on the concept of multidimensional poverty has been increasingly improved in accordance with the current conditions: (i) UNDP's perspective in 1997, multidimensional poverty did not mention the material dimension; (ii) The World Bank's view in 2000, adding an aspect of quality of life, but not yet be specific in distinguishing between the aspects of education and health (two extremely important aspects in the human development); (iii) Vietnam's view in 2015 has fully inherited different aspects from the previous views and added the missing aspects including the income aspect within the connotation of multidimensional poverty.

On the basis of inheriting international research results, this thesis examined the impact of institutions on multidimensional poverty in Vietnam in 2 perspectives: (i) finding the "transmission channels" to distribute the impact of institutions on multidimensional poverty in Vietnam, (ii) finding out the specific impact of institutions on multidimensional poverty. Research results will be an important basis to help Vietnam deal with the relationship between institution and multidimensional poverty, and then move towards the realization of the sustainable development goal.

Based on the research gaps above, the thesis will solve the following problems: With the definition and the substantive approach to multidimensional poverty mentioned above, the thesis uses the connotation of multidimensional poverty based on the concept of Vietnam’s view in 2015 because it shows the best inclusion of different dimensions of poverty.

2.1.2. Multidimensional poverty measures

Completing the theoretical basis for assessing the institutional impact on multidimensional poverty including synthesizing the transmission channel of the institutional impacts on multidimensional poverty as well as identifying the influencing factors and the institutional impact assessment model.

There are many multidimensional poverty measures used in different countries, yet they are all based on the international Multidimensional Poverty Index (MPI) developed by the Oxford Poverty and Human Development Initiative (OPHI) of Oxford University based on the Alkire and Foster method.

institution,

Vietnam officially applies a multidimensional poverty assessment from 2016 to 2020. Multi-dimensional poverty measurement in Vietnam uses the Alkire and Foster method because of its simplicity and popularity. Accordingly, Vietnam uses 5 dimensions of poverty measurement including Education, Health, Housing, Living Conditions and Access to Information.

Comprehensively analyzing and assessing the current situation of institutional impacts on multidimensional poverty in Vietnam according to the status of current following contents: Status of current multidimensional poverty, status of impact and factors affecting the multi- dimensional poverty. From there, the thesis can conclude the achievements and existing problems of institutions and multidimensional poverty in Vietnam in recent years. On the basis of analyzing the causes of existing problems, the thesis will propose appropriate recommendation to enhance the institutional impacts on multidimensional poverty in Vietnam, towards the goal of sustainable and better multidimensional poverty reduction in the next period.

Regarding the research scope, the thesis uses Vietnam's approach in multidimensional poverty assessment, as well as in analyzing the institutional impact on multidimensional poverty due to the appropriateness of the measurement indicators to the real situation in Vietnam during the transitional period from single-dimensional poverty to multidimensional poverty.

2.2. Institution CHAPTER 2: THEORETICAL FRAMEWORK OF IMPACTS OF INSTITUTIONS ON MULTIDIMENSIONAL POVERTY 2.2.1. Conceptualization of institution

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At least three concepts of institutions are used universally both academically and practically. In general, these concepts define the institution as an element to organize and arrange social interactions. However, each concept will emphasize on different aspects of the institution. One of them emphasizes institutions as "rules and laws", another emphasizes institution as the "role of organizations in organizing human behaviors". The last as well as the most commonly used concept emphasizes institution as both aspects above: "rules" and "players" (organizations). (community participation, framework legal

Combining the relationship between these factors is regarded as the institution, which is the important factor contributing to poverty reduction. Institutions affects poverty by two "transmission channels", either directly or indirectly through a number of intermediaries. Institutions significantly affect the speed and quality of economic growth and then economic growth affects poverty, which is considered as an indirect "transmission channel" via economic growth and distribution of income. In addition, institutions - via formal institutional aspects system, public administration reform, public sector corruption control) can directly affect poverty (in terms of both income and multidimensional). 2.2.2. Measures of institution 2.4. Factors affecting the impact of institution on multidimensional poverty

2.4.1. Factors of institutional capacity

Different international institutional metrics (Global Governance Index; Corruption Perceptions Index ...), mainly assess institutions at the national level, and very few of them is applicable to the local area within a country. From a more practical point of view, these indicators do not make much sense for a country because it is impossible to look at institutional problems on a single level since many problems arise due to the interactions between authorities. Therefore, within the institutional approach, the thesis chooses institutional measurement at the local level. Factors of institutional capacity include: (1) Awareness, thinking and capacity of the leaders and state administrative apparatus; (2) Decentralization in level and authority of state administrative management and finance; (3) Factors related to the system of policies to resolve the relationship between institutions and multidimensional poverty; (4) The capacity factors of poverty reduction officials; and (5) Resource factors.

2.4.2. Factors of capacity of the poor

The poor's awareness of the socio-economic development goals in general and the State's poverty reduction policies in particular is still limited. This often stems from the level of transparency, completeness and appropriateness in the provision of information by the state and from the poor's ability to access information. In terms of the poor's ability to access information to policy, the state poverty reduction plan is often quite passive.

In Vietnam, apart from being evaluated, compared and ranked by international organizations according to international criteria, Vietnam has actively developed and used a number of indicators to evaluate and rank institutions for provinces and cities under (the jurisdiction of) the central government such as: PCI (Provincial Competitiveness Index), PAPI (The Viet Nam Provincial Governance and Public), PAR INDEX (Public Administration Reform Index), the SIPAS (Satisfaction Index of Public Administrative Services). In the above institutional assessment indicators, the thesis selects PAPI index to evaluate the institutions in Vietnam.

2.3. Transmission channels for the impact of institution on

multidimensional poverty

It can be seen that poverty is not only the result of the economic phenomena but also the result of social and political phenomena, as well as the interactive relationship between economic, social and political factors together. In addition, the capacity of the poor is also quite limited in terms of lack of social understanding, the confidence, the ability to detect, solve problems and access new information and knowledge. Their social status is often inferior, their voices are rarely heard, and benefits are easily overlooked. Thus, they have low resource access and lack or inadequate information. Therefore, it will lead to a positive or limited or even negative influence of institution on the multidimensional poverty aspects of the household.

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Figure 3.1. Analytical framework

Source: Phd Candidate CHAPTER 3: RESEARCH MODEL AND METHODS 3.2. Research methods

3.2.1. Methods of collecting and processing data

From the research objectives and analytical framework, in order to collect and process primary and secondary data, the thesis uses the following methods: (i) analysis and synthesis methods; (ii) Desk research method; (iii) descriptive statistical analysis methods; and (iv) quantitative research methods. To achieve research objectives, appropriate use of research methods is very important. This chapter focused on describing research methods used in the thesis to answer research questions including research methods, data sources and data analysis methods. The analytical framework of the thesis is the premise of research methods and data analysis.

3.1. Analytical framework

From the theoretical overview, the thesis used the following analytical 3.2.2. Research model The thesis inherited the models outlined in the study of Massimo Baldini et al (2017) and the study of Christoph Jindra and Ana Vaz (2019). The model to assess the impacts of institutions on multidimensional poverty is as follow: framework to achieve the research objectives:

mpia=P (cid:2)multidimensional poverty (cid:18)= β0+ β1LogLPAPI+ β2Xia+ β3Za+year dummy+ εit (cid:2)1(cid:18)

Direct impact analysis through

quantitative methods

Institutions

Multi- dimensional Poverty

- The nature - Evaluation criteria

- The nature - Evaluation criteria

3.2.3. Model estimation method The thesis uses Multilevel Probit model to evaluate the impacts of

institutions on multidimensional poverty.

3.2.4. The appropriateness of the estimation method of the Multilevel

Probit model in the thesis

Factors influencing

The situation of multidimensional

impacts of institutions on

poverty in Vietnam

The situation of institutions in

Vietnam

multidimensional

poverty.

From the literature review, there are different estimation methods can be used to assess the impact of institutions on poverty. In addition to the estimation method of the binary Probit regression model, there are other methods, namely: (i) OLS estimation method; (ii) System GMM method; (iii) Quantile regression.

Evaluate the results of the impacts of institutions on multidimensional poverty in Vietnam

Propose solutions and policy directions to enhance institutional

impacts on multidimensional poverty based on the following reasons.

The above three methods require the dependent variable to be a continuous variable over time. Most of the studies using the above estimation methods used the poverty rate (by income) of each country in different years. Meanwhile, the dependent variable used in this thesis is a dummy variable with multidimensional poverty or non-multidimensional poverty of the household. Thesis using multi-level data (Vietnam Household Living Standards Survey (VHLSS)), in which households are integrated in the local / regional. Because of the characteristics of the dependent variable and research data, and inheriting the study of Massimo Baldini et al (2017) and the study of Christoph Jindra and

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Ana Vaz (2019), the thesis chose the estimation method of the Multilevel Probit regression model.

Five of the six indexes tended to increase over the entire period. In which, the two indexes, “Corruption control in public sector” and “Publicity and transparency in decision making” have the most obvious increase. 3.2.5. Data source

4.1.2. The situation of multidimensional poverty in Vietnam

The thesis has analyzed the general multidimensional poverty situation in Vietnam. The results show that: (i) Multidimensional poverty rate tends to decrease gradually, but poverty reduction speed is slow; (ii) The poverty picture becomes clearer if assessed using to multidimensional criteria.

In order to apply the analytical framework outlined above, the thesis exploited secondary data sources including published and raw data from different surveys. The main data used in the thesis are raw data from the Vietnam Household Living Standard Survey (VHLSS). In addition, the thesis uses published data from the Provencial Governance and Public Administration Performance Index (PAPI), from national and local statistical yearbooks and other surveys.

CHAPTER 4 THE SITUATION OF IMPACTS OF INSTITUTIONS ON MULTIDIMENSIONAL POVERTY IN VIETNAM that

4.1. The situation of institutions and multidimensional poverty in Regarding the welfare dimensions insufficient levels, the thesis’s results show that: (i) The insufficient rate of national multidimensional poverty indicators decreased in the period 2016 - 2018, except for “information access poverty”; (ii) The insufficient levels of adult’s educational level, drinking water sources and hygienic latrines remain high. Decomposing the causes of multidimensional poverty, indexes of “health the analysis shows insurance”, “housing quality” and “telecommunications services usage” of households tend to decrease while other indexes tend to increase. Vietnam

4.1.1. The situation of institutions in Vietnam

Thus, in order to quickly reduce multidimensional poverty in Vietnam in the coming time, it is necessary to have drastic solutions, develop policies and improve institutions to increase the ability to attend school, improve housing system, water quality and increase ownership of information access property.

To analyze the institutional situation in Vietnam, the thesis uses a number of basic indicators that have been used in many studies, namely: (1) Worldwide Governance Indicators (WGI) used by World Bank; (2) Institutional pillars in some indicators such as: Global Competitiveness Index (GCI), Global Innovation Index (GII); (3) Vietnam's PAPI. Besides, the thesis also analyzes multidimensional poverty among population groups, including (i) gender and age; (ii) ethnic groups; (iii) urban and rural areas; (iv) regions.

The international indicators analysis shows that Vietnam is getting an 4.2. Situation of impacts of institutions on multidimensional poverty improvement in the institutional aspect, but reform is still slow. in Vietnam

local characteristics variables on

To analyze the impact of institutions on multidimensional poverty, the thesis used 8 research models and grouped them into the following model groups: Group 1: assessing the impact of factors affecting the probability of multi-dimensional poverty of households. Group 2: assessing the impacts of institutions and the probability of multidimensional poverty of households. This group of models answered the first research question of the thesis. Group 3: Assessing the interaction impacts Analysis of PAPI in Vietnam shows that, after decreasing in 2015, the average PAPI at the provincial level tends to increase steadily, from 34 in 2015 to 37.4 in 2019. Thus, in 10 years (2011 - 2019), Vietnam has recorded specific progress in improving the efficiency of provincial governance and public administration. Especially in the last 5 years, the overall index has been on the rise, showing substantial changes in state governance and provincial public service delivery in Vietnam.

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in urban and living

of institutions on probability of multidimensional poverty of households living in urban, rural, and regions with different levels of development. This group was formulated to answer the second research question of the thesis. Group 4: assessing the impact of specific aspects of the institution as well as their interaction with rural areas on probability of multidimensional poverty of households. This group aimed for the purpose of answering the third research question of the thesis.

low-income areas, impacts of low- and the The analytical results show:

words, if the institution is improved, the level of difference in probability of falling into poverty between low- and high-income regions will be narrowed down. Firstly, with low institutions, the probability of multidimensional poverty of households living in regions with different levels of development has a large difference. However, when the institution is better, the level of difference in the probabilities of multidimensional poverty among households living in regions with different levels of development is lower. Secondly, the results show that in very institutions on multidimensional poverty is stronger than in areas with higher income levels. Thirdly, in regions with high- and very high-income levels, institutions have negative effects on multidimensional poverty.

Institution variable has a negative and statistically significant effect, indicating that higher levels of institutions or better quality of institutions are associated with lower level of multidimensional poverty, or in other words, the better the institution gets, the lower the probability of multidimensional poverty. Thus, we can see positive impacts of institutions on multidimensional poverty.

Analyzing the impact of each aspect of institutions on multidimensional poverty shows: Firstly, the three aspects - “local people participation”, “public administration” and “public service delivery” have positive impacts on multi- dimensional poverty. Secondly, the other two aspects - “Publicity and transparency in decision making” and “accountability to the people” have negative impacts on multidimensional poverty. The effects of these aspects also differ in urban or rural areas.

4.3. The situation of factors influencing impacts of institutions on

multidimensional poverty in Vietnam

The thesis deeply analyzed two groups of factors, including:

In order to analyze the medium-term impacts of institutions on multi- dimensional poverty, the thesis used 3-years delay variable of PAPI. The medium-term impact variable of institutions on the probability of multi- dimensional poverty is also negative and the value is lower with a 1-year delay effect, meaning that good institutions still have a positive impact on multidimensional poverty in the medium-term but the impact is weaker. Thus, regions that have good institutions and are maintaining as well as improving for a relatively long time have positive impacts on reducing the probability multi- dimensional poverty of households living there.

tends (ii) to (i) Factors related to institutional capacity: Mindset, capacity, attitude and ethics of agencies, individuals and state management officials at different levels; Decentralization in state administrative management and finance; System of policies related to the relationship between institutions and multidimensional poverty; Competency of poverty reduction officers; and Resource. The analytical results of the thesis show that these factors still have many shortcomings and need to be improved in the coming time.

When institutions get better, the advantages of living in urban areas decrease. In other words, when local institutions improve, the level of difference in probability of falling into poverty between urban and rural areas will be narrowed down: (i) the probability of falling into multidimensional poverty the status of increase for urban households; multidimensional poverty tends to decrease for households living in rural areas but increase for urban areas. This can be seen as a new discover of the thesis.

(ii) Factors related to capacity of the poor: In Vietnam, the awareness of the poor and their participation in the management and administration activities of the local government have improved relatively slowly.

The impact of institutions on multidimensional poverty reduction is different in regions at different levels of development and as the institutions get better, the advantage of living in high-income regions will decrease. In other

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4.4. General assessment of the impacts of institutions on multidimensional

poverty in Vietnam

Second, the policy system related to multidimensional poverty reduction has many overlaps and there are no poverty reduction policies that are specific to the regions, especially for urban areas and regions without difficulty.

Based on the above analysis, the thesis draws a number of conclusions to assess the situation of the impacts of institutions on multidimensional poverty in Vietnam as follows:

Third, the financial resources to ensure multidimensional poverty reduction and institutional reform are still limited, in decentralization of management, not encouraging the role and initiative of the local. 4.4.1. Achievements

Fourth, the capacity of poverty reduction officials is still inconsistent First, institutions have positive impacts on multidimensional poverty among regions and there are no common standards. when viewed as a whole.

Fifth, the awareness capacity of the poor is low and the proactive Second, the impacts of institutions on multidimensional poverty is participation of the poor in state decisions related to poverty reduction is low. stronger in rural areas and in low- and very low-income regions.

Third, the three aspects of “local people participation”, “public administration” and “public service delivery” have positive effects on multi- dimensional poverty.

4.4.2. The problems related to the impacts of institutions on the multi-

dimensional poverty

Despite the initial positive signs of the impacts of institutions on multidimensional poverty, there are still remaining problems that need to be addressed:

First, the current institutions have an “opposite” effect on the

multidimensional poverty reduction of urban households.

Second, institutions current have the effects on

negative multidimensional poverty in high- and very high-income regions.

Third, two aspects, “Publicity and transparency in decision making” and “accountability to the people”, have negative impacts on multidimensional poverty. The impacts of various aspects of institutions on multidimensional poverty differ in different regions.

4.4.3. The cause of the problems

The above problems come from the following main causes:

First, the institutional reform is slow, not comprehensive, and sometimes

just a “slogan”.

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organize and implement multidimensional poverty-related policies: (4) Improve capacity of poverty reduction officers; and (5) Improve capacity of the poor.

CHAPTER 5 SOLUTIONS TO INCREASE THE IMPACT OF INSTITUTIONS ON MULTIDIMENSIONAL POVERTY IN VIETNAM

5.1. International and domestic contexts affect institutions and multidimensional poverty in Vietnam in the coming time

5.1.1. International context According to research and forecasts of many international organizations and scientists, the following issues will greatly affect the socio-economic development of Vietnam, which involve both institutions and multidimensional poverty: (1) The rapid development of science and technology; (2) The increasing impact of climate change; (3) Globalization and economic integration.

5.1.2. Domestic context Vietnam is currently facing a number of difficulties and challenges in the coming time: (1) Economic growth model is still based mainly on input factors, with slow improvement of growth quality, productivity and economic competitiveness; (2) The impact of global climate change on Vietnam is increasingly strong and destructive. 5.2. Perspectives on increasing impacts of institutions on multi- dimensional poverty in Vietnam in a new context

5.3. Solutions impact of institutions the to to Three perspectives are proposed, including: (1) Institutional reform must be considered as an important factor to create a new driving force to promote rapid and sustainable growth, thereby creating resources to support multi- dimensional poverty reduction; (2) Institutional reform must be people-centered and harmonize with nature and environment; (3) Institutions related to multidimensional poverty need to maximize the support for the poor. increase multidimensional poverty in Vietnam

From the research results and the causes indicated in Chapter 2, the thesis proposes 5 solutions to increase the impact of institutions on multidimensional poverty reduction in Vietnam in the coming period: (1) Promote comprehensive institutional reforms associated with the goal of sustainable poverty reduction, emphasize the characteristics of each region; (2) Complete the policy system related to multidimensional poverty reduction; (3) Ensure financial resources to

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CONCLUSION

situation as Vietnam today ... From there, problems/shortcomings in Vietnam in term of the impact of institutions on multidimensional poverty can be drawn out. The causes of the problems are also clearly identified.

Thirdly, the thesis has outlined a system of perspectives and objectives to increase the impacts of institutions on multidimensional poverty in Vietnam in the coming time. The perspectives given are based on scientific basic, which are: (i) Forecasts about domestic and international contexts affecting Vietnam's development; (ii) Shortcomings in research on the relationship between institutions and multidimensional poverty in Vietnam in the past.

Lastly, based on: (i) Perspectives for increasing the impacts of institutions on multidimensional poverty; (ii) The causes of the shortcomings of the previous era that need to be solved in the new era with profound requirements and contents, the thesis proposed a system of solutions.

The state administrative reform master program for the period 2011-2020 has identified an objective: Develop and improve the socialist oriented market economy institutional system in order to free up production forces, effectively mobilize and utilize all resources for national development. The administrative reform over the next 10 years focuses on: Institutional reform; Developing and improving the quality of civil servants and public employees, focusing on salary policy reform to create higher motivation for them to perform with high quality and effectiveness; Improving the quality of administrative services and the quality of public services. Regarding sustainable poverty reduction, Resolution No. 76/2014/QH13 stated: Strengthening the state management; Improving the operating mechanism, assigning the focal point of responsibility, fully decentralizing specific rights and obligations to the locality; Reforming administrative procedures and methods for people and communities to access and participate in poverty reduction policies; Promote communication and education to raise awareness of self-escaping poverty.

The research: “Impacts of institutions on multidimensional poverty in Vietnam” is necessary from the beginning of the thesis, becomes even more important because it is core content in the next stages of national development.

Based on the objectives, the thesis has solved all the requirements of the research, in which the main results need to be emphasized:

Although the thesis has achieved its set objectives, the thesis still has some limitations as follows: (1) the thesis focuses on researching the impact of institutions on multidimensional poverty through "direct channels". so the "indirect transmission channel" (through the economic growth channel and the income distribution channel) has not spent much analysis; (2) the thesis uses PAPI indicators from measuring people's practical experience as a composite index to evaluate institutions, however, the author found that PAPI refers to governance and public administration at provincial level, while the institution is broader, national, and involved in national reforms in the new period, perhaps the PAPI is a not-wrong measure, but still not broad enough as a aggregate measure to evaluate institutions; (3) The dissertation uses VHLSS survey data, so the data has not been able to be updated, so it may not be able to timely evaluate the changes of institutions and multidimensional poverty in the new context.

Firstly, develop a scientific research framework on the impacts of institutions on multidimensional poverty based on the literature review. The new discover of the study is that it has shown the “transmission channels” of impacts of institutions on multidimensional poverty. Moreover, the perspective of the thesis is not to set institutions and multidimensional poverty to exist independently, but to study the relationship between these two factors, which is shown in the theoretical framework: research content, influencing factors.

These limitations can be used as a research direction in the future such as: analyzing the impact of institutions on multidimensional poverty through indirect impact channels (through economic growth and income distribution); find a new more suitable metric to measure institutions and their impact on other aspects of development. Knowledge is infinite, combined with the limitations of time, resources, awareness, and skills, the content of the thesis (in Secondly, by using multi-dimensional research methods, based on the theoretical framework, the thesis analyzed the situation of impacts of institutions on multidimensional poverty in Vietnam mainly from 2016 to 2018, with cross-comparison with similar countries, successful countries in the same

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terms of quantity and quality) is still incomplete and superficial. Hopefully, it will be improved in the next in-depth studies.