Demand Analysis of Multiple Goods and Services in Vietnam
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 dem...
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World Bank, Washington, DC
2021
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okr-10986-363892021-10-15T05:10:33Z Demand Analysis of Multiple Goods and Services in Vietnam Vigani, Mauro Dudu, Hasan PRICE ELASTICITY QUALITY SUBSTITUTION QUAIDS INSTRUMENTAL VARIABLES ENDOGENEITY HOUSEHOLD SURVEY QUADRATIC ALMOST IDEAL DEMAND SYSTEM 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. 2021-10-14T14:07:52Z 2021-10-14T14:07:52Z 2021-10 Working Paper http://documents.worldbank.org/curated/undefined/640571634048710919/Demand-Analysis-of-Multiple-Goods-and-Services-in-Vietnam http://hdl.handle.net/10986/36389 English Policy Research Working Paper;No. 9803 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper East Asia and Pacific Vietnam |
| repository_type |
Digital Repository |
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Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
PRICE ELASTICITY QUALITY SUBSTITUTION QUAIDS INSTRUMENTAL VARIABLES ENDOGENEITY HOUSEHOLD SURVEY QUADRATIC ALMOST IDEAL DEMAND SYSTEM |
| spellingShingle |
PRICE ELASTICITY QUALITY SUBSTITUTION QUAIDS INSTRUMENTAL VARIABLES ENDOGENEITY HOUSEHOLD SURVEY QUADRATIC ALMOST IDEAL DEMAND SYSTEM Vigani, Mauro Dudu, Hasan Demand Analysis of Multiple Goods and Services in Vietnam |
| geographic_facet |
East Asia and Pacific Vietnam |
| relation |
Policy Research Working Paper;No. 9803 |
| description |
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. |
| format |
Working Paper |
| author |
Vigani, Mauro Dudu, Hasan |
| author_facet |
Vigani, Mauro Dudu, Hasan |
| author_sort |
Vigani, Mauro |
| title |
Demand Analysis of Multiple Goods and Services in Vietnam |
| title_short |
Demand Analysis of Multiple Goods and Services in Vietnam |
| title_full |
Demand Analysis of Multiple Goods and Services in Vietnam |
| title_fullStr |
Demand Analysis of Multiple Goods and Services in Vietnam |
| title_full_unstemmed |
Demand Analysis of Multiple Goods and Services in Vietnam |
| title_sort |
demand analysis of multiple goods and services in vietnam |
| publisher |
World Bank, Washington, DC |
| publishDate |
2021 |
| url |
http://documents.worldbank.org/curated/undefined/640571634048710919/Demand-Analysis-of-Multiple-Goods-and-Services-in-Vietnam http://hdl.handle.net/10986/36389 |
| _version_ |
1764485142897754112 |