Volume 4, Issue 1, February 2015, Page: 1-14
Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam
Nguyen Tan Phat, Department of Human resources, Vietnam National University Ho Chi Minh City, Vietnam; Faculty of Economics, University of Economics & Law, Vietnam National University Ho Chi Minh City, Vietnam
Received: Jan. 19, 2015;       Accepted: Jan. 26, 2015;       Published: Feb. 10, 2015
DOI: 10.11648/j.jwer.20150401.11      View  2779      Downloads  187
Abstract
Structural transformation aims at shifting from undeveloped economy into developed one, yet maintains an increase in income and social welfare. A theoretical and empirical research in developed nations unveils that economic structure and its transformation play a decisive role for economic take-off. Economic structure is, however, an enormous issue; thus finding out the core or its starting point is regarded as the key deciding the impetus for economic take-off. On the basis of Rostow’s theory, an empirical research from Hollis B. Chenery and successful industrialization in different nations, the author realizes that economic transformation generally derives from industrial production. On this foundation, the author initially discovers and suggests hypothesis of industrial-product structure as an efficient ruler of economic structure. It is used to verify Vietnam’s growth in the period from 1986 to 2012 - a typical developing nation with growth through years but failure to take off. The research reveals that Vietnam’s economic structure depends on a weak and less competitive industry, primarily on industries of food, beverage, resources exploitation and intensive laborers; hence take-off hand in hand with modification of economic structure, the core of which is industrial-product structure. Policy and measures on the scientific grounds coming from this theory suggest that a focus must be on heavy industry, consuming industry, supporting industry and processing industry, from which Vietnam compatibly benefits. Furthermore, effective role of every single economic sector must be determined to boost development of all industries. That is the best action for present and long term to take off economy.
Keywords
Structural Transformation, Economic Structure, Structure of Industrial Products, Vietnam’s Economic Structure
To cite this article
Nguyen Tan Phat, Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam, Journal of World Economic Research. Vol. 4, No. 1, 2015, pp. 1-14. doi: 10.11648/j.jwer.20150401.11
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