Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/163112
Authors: 
Morgan, Peter J.
Trinh, Long Q.
Year of Publication: 
2016
Series/Report no.: 
ADBI Working Paper Series 613
Abstract: 
Since 1975, Viet Nam has gradually decentralized more fiscal responsibilities to local authorities. This study has two objectives: (i) to take stock of the current institutional framework for intergovernmental fiscal relations in Viet Nam, and (ii) to empirically assess the debt sustainability of local governments in Viet Nam. The empirical analysis uses two estimation methods: (i) fully modified ordinary least squares (OLS) to estimate the long-term correlations between co-integration equations, including vectors of co-integration variables, and stochastic regressor innovations; and (ii) fiscal reaction equations at the provincial level, based upon the Bohn (2008) model. The empirical results suggest that deficit levels are generally sustainable at the local level.
Subjects: 
Government decentralization
government fiscal balance
intra-government transfers
expenditure assignment
revenue assignment
local government borrowing
Viet Nam
JEL: 
H70
H71
H72
H74
H77
Creative Commons License: 
https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
Document Type: 
Working Paper

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