Determinants of the result of new rural development program in Vietnam

Abstract

PurposeThe purpose of this paper is to identify the determinants of the proportion of communes that met all national new rural criteria (hereafter NRD communes).Design/methodology/approachFirst, the method of propensity score (PS) stratification is used to classify 63 provinces into the subgroups. Second, the ordinary least squares (OLS) model is used with the subgroups classified from the PS stratification method as one of explicative variables. The dependent variable in the OLS model is the proportion of NRD communes.FindingsWith the sample of 63 provinces of Vietnam, the author found that per capita income growth rate, high growth of gross regional domestic product (GRDP) and effort of the provincial authority have positive impact on the proportion of NRD communes.Practical implicationsThis research suggests that the provincial authority should actively participate in the NRD program, and the economic development is key factor for success implementation of the NRD program.Originality/valueThis research contributes to understand the factors impacting the result of the NRD program and then help to identify the measures to support this program.