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A comparative political economy analysis of institutions and growth : the case of China and Vietnam
Date Issued:
2022
Author(s):
Tang, Duc Toan
FSPPM
Abstract:
The causal relationship between institutional quality and the economic achievements of China and Vietnam in the last four decades is widely accepted. Waves of institutional economists have consistently proved how inclusive economic institutions enable growth and development in both nations after their reforms. However, this line of argument also creates a profound puzzle as China has achieved a more robust growth than Vietnam despite its more extractive nature. The fact that the two nations embarked on the journey of economic reforms with nothing but similarities in background and motives allows this thesis to employ a comparative design and the growing literature of institutions and development to identify an answer. Understanding the actual relationship between institutions and growth, especially when the topic of further institutional reforms has been widely discussed, enables necessary policy implications for the more sustainable growth of Vietnam.