The relationship between government spending and poverty alleviation in emerging markets: empirical evidence from Vietnam

Abstract

AbstractThis paper uses a fixed effects model and a fixed effects quantile regression to explore the relationship between government spending and poverty reduction in the 63 provinces of Vietnam from 2010 to 2020. Our study argues and finds that government spending plays a significant role in reducing the poverty rate in Vietnam. Furthermore, the paper shows that income per capita is a good proxy for the poverty rate. Given the influential role of government spending in reducing impoverishment, the study also finds that income inequality is a challenge to the Vietnamese government. It contributes to the literature on public finance in Vietnam and emerging markets. Additionally, it has policy implications for policymakers in these economies regarding addressing poverty alleviation and income inequality.Keywords: Government spendingpoverty reductionincome per capita Disclosure statementNo potential conflict of interest was reported by the author(s).Notes1 B. 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