Analyzing the role of provincial governance and public administration performance on local economic development in Vietnam

Abstract

This article analyzes the correlation between provincial governance and public administration performance (PAPI) and the local economic development in Vietnam. Empirical results show that the PAPI positively correlates with per capita income and reduces poverty. Analysis of PAPI’s
components also indicates that the control of corruption, participation of the people at the grassroots, the level of accountability and transparency, and improvement of public administrative procedures significantly impact local poverty reduction. From the above research results, if local governance’s effectiveness increases, the per capita income will grow and the poverty rate will decrease.