This paper examines how initial inequality and poverty rate are related to subsequent economic growth in the provincial level of Vietnam. The results show a robust negative relationship between initial poverty rate and subsequent economic growth. | The linkages between growth poverty and inequality in Vietnam An empirical analysis Accounting 6 2020 177 184 Contents lists available at GrowingScience Accounting homepage ac The linkages between growth poverty and inequality in Vietnam An empirical analysis Hoai Nam Nguyena Quoc Hoi Leb and Thi Thu Cuc Nguyena aVinh University Vietnam bNational Economics University Vietnam CHRONICLE ABSTRACT Article history This paper examines how initial inequality and poverty rate are related to subsequent economic growth in the Received September 2 2019 provincial level of Vietnam. The results show a robust negative relationship between initial poverty rate and Received in revised format subsequent economic growth. However there is no link between initial inequality and subsequent economic September 2 2019 growth. The results also show that lower inequality leads to lower poverty rate and poverty reduction could help to Accepted October 15 2019 reduce inequality. Other determinants of inequality and poverty reduction include human capital investment gross Available online domestic product GDP growth rate and trade openness. The main policy implication that emerges from this paper October 17 2019 is that concentrating on poverty elimination will help us build a more equitable society without sacrificing economic Keywords growth. Poverty Inequality Economic growth Vietnam 2020 by the authors licensee Growing Science Canada 1. Introduction The links between growth poverty and inequality have long been investigated. Earlier researchers like Lewis 1954 and Kuznets 1955 were primarily interested in the distributional consequences of economic development. In recent years the reinvigorated interest in the endogenous growth theory has fuelled substantial research into the exploration of the impact of inequality on growth. While the emerging dominant view is that inequality is harmful for growth Aghion et al. 1999 Perotti 1993 Persson amp Tabellini 1994
