Abstract
Public governance and income inequality relationship is complex and debatable. This paper examines the extent to which the quality of local governance affects inequality in Vietnam spanning the 2006–2016 period. I apply a generalized method of moments (GMM) estimators to a dynamic panel data extracted from the Vietnam’s provincial competitiveness index and the Vietnam household living standard surveys. The findings are that there is a positive inequality — corruption link but no statistically significant correlation coefficient between the overall level of governance and income disparity. The study, therefore, suggests that the Vietnamese Government at all levels should consider both more effective legal practices and economic low-cost solutions to mitigate corruption.
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