Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam

Nguyen Tan Phat

doi:doi:10.11648/j.jwer.20150401.11

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Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam

Nguyen Tan Phat

Published in Journal of World Economic Research (Volume 4, Issue 1)

Received: 19 January 2015 Accepted: 26 January 2015 Published: 10 February 2015

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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.

Published in	Journal of World Economic Research (Volume 4, Issue 1)
DOI	10.11648/j.jwer.20150401.11
Page(s)	1-14
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2015. Published by Science Publishing Group

Keywords

Structural Transformation, Economic Structure, Structure of Industrial Products, Vietnam’s Economic Structure

References

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[2]	Geoff Riley, 2011. UK Manufacturing Output, http://www.tutor2u.net/blog/index.php/site/author/3/
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[4]	http://www. en.wikipedia.org/wiki/Restructuring
[5]	Nguyen Tan Phat, 2011. Identification of Vietnamese economic structure on the basis of analysis of industrial-product structure, Economic Research, (393), February, 2011)
[6]	Vietnamese Economics Magazine, 2012. Economy in 2011 and 2012 Vietnam and the World
[7]	Vietnamese General Statistics Office, 2013. Economy and Society in 2012, http://www.gso.gov.vn/default.aspx?tabid=413&thangtk=12/2012
[8]	Phuong Mai – Khanh Linh, 2012. Macroeconomics - Investment, http://cafef.vn/kinh-te-vi-mo-dau-tu/gdp-viet-nam-nam-2012-uoc-dat-136-ty-usd-thu-nhap-binh-quan-dau-nguoi-dat-1540-usd-20121203042658795ca33.chn
[9]	Le Thi Dieu Thao and Nguyen Thao Phuong, 2011. Vienam’s public debt – Matters for further discussion, http://www.sbv.gov.vn/wps/wcm/connect/69765a004794f5438798d78a2a12afeb/le+phan+thi+dieu+thao.pdf?MOD=AJPERES&CACHEID=69765a004794f5438798d78a2a12afeb
[10]	World Bank, 2013. Data, Country and Lending Groups, http://data.worldbank.org/about/country-classifications/country-and-lending-Groups#Low_income
[11]	World Economics Forum, 2013. The Global Competitiveness Report 2012–2013 of WEF
[12]	General Statistics Office, 2013. Industry, value of industrial production based on 1994 comparable price, divided into economic sectors, http://www.gso.gov.vn/default.aspx?tabid=391&idmid=3&ItemID=13236
[13]	General Statistics Office, 2013. Industry, chief industrial products, http://www.gso.gov.vn/default.aspx?tabid=391&idmid=3&ItemID=13225
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Nguyen Tan Phat. (2015). Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam. Journal of World Economic Research, 4(1), 1-14. https://doi.org/10.11648/j.jwer.20150401.11

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ACS Style

Nguyen Tan Phat. Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam. J. World Econ. Res. 2015, 4(1), 1-14. doi: 10.11648/j.jwer.20150401.11

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AMA Style

Nguyen Tan Phat. Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam. J World Econ Res. 2015;4(1):1-14. doi: 10.11648/j.jwer.20150401.11

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@article{10.11648/j.jwer.20150401.11,
  author = {Nguyen Tan Phat},
  title = {Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam},
  journal = {Journal of World Economic Research},
  volume = {4},
  number = {1},
  pages = {1-14},
  doi = {10.11648/j.jwer.20150401.11},
  url = {https://doi.org/10.11648/j.jwer.20150401.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20150401.11},
  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.},
 year = {2015}
}

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TY  - JOUR
T1  - Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam
AU  - Nguyen Tan Phat
Y1  - 2015/02/10
PY  - 2015
N1  - https://doi.org/10.11648/j.jwer.20150401.11
DO  - 10.11648/j.jwer.20150401.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 1
EP  - 14
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20150401.11
AB  - 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.
VL  - 4
IS  - 1
ER  -

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Author Information

Nguyen Tan Phat

Department of Human resources, Vietnam National University Ho Chi Minh City, Vietnam

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Plain Text BibTeX RIS

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Nguyen Tan Phat. (2015). Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam. Journal of World Economic Research, 4(1), 1-14. https://doi.org/10.11648/j.jwer.20150401.11

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ACS Style

Nguyen Tan Phat. Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam. J. World Econ. Res. 2015, 4(1), 1-14. doi: 10.11648/j.jwer.20150401.11

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AMA Style

Nguyen Tan Phat. Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam. J World Econ Res. 2015;4(1):1-14. doi: 10.11648/j.jwer.20150401.11

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@article{10.11648/j.jwer.20150401.11,
  author = {Nguyen Tan Phat},
  title = {Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam},
  journal = {Journal of World Economic Research},
  volume = {4},
  number = {1},
  pages = {1-14},
  doi = {10.11648/j.jwer.20150401.11},
  url = {https://doi.org/10.11648/j.jwer.20150401.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20150401.11},
  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.},
 year = {2015}
}

Copy | Download

TY  - JOUR
T1  - Structural Transformation to Take Off Economy in Developing Nations: Research on Theory and Practice in Vietnam
AU  - Nguyen Tan Phat
Y1  - 2015/02/10
PY  - 2015
N1  - https://doi.org/10.11648/j.jwer.20150401.11
DO  - 10.11648/j.jwer.20150401.11
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 1
EP  - 14
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20150401.11
AB  - 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.
VL  - 4
IS  - 1
ER  -

Copy | Download