Spatial dependence boosts growth in Vietnamese provinces, impacting regional policies.
Spatial dependence affects economic growth in Vietnamese provinces, impacting how quickly they catch up with each other. By studying 60 provinces from 1999 to 2010, researchers found that growth in one province can influence growth in its neighbors. This means that provinces don't grow in isolation, and policies should consider these spillover effects to promote balanced development. The farther apart provinces are, the slower they converge in terms of economic growth. This suggests that understanding spatial relationships is crucial for designing effective regional policies in Vietnam and other countries.