Abstract:
Since 1986, Vietnam has made a transition from a centrally planned economy to a market economy. Since then, Vietnam has been under pressure to reduce the size of the state sector and, along with it, the private sector has been looming larger and lager. In this paper we focus on the optimum distribution of economic activity across ownership structure.
If labor and capital could reallocate across sectors and types of ownership, what would be the optimum allocation of activities and the achievable level of domestic final demand?
We present a multi-sectoral integrated activity analysis model, a variant of the general equilibrium model of Mohnen and ten Raa (1994), and apply it to the data of the input-output tables and the ownership structure of the Vietnamese economy for the year 2000.