Abstract
National economic structure is defined as the composition and patterns of various components of the national economy such as: production, value added, consumption, gross capital formation, export, import and gross value added. Structural change is conceptualized as the change in relative importance of the aggregate indicators of the economy. It implies that changes of intra-sectoral and inter-sectoral lead to changes in final demand, output, value added and import. This paper seeks to answer some questions: 1) What would be the impact on the power of dispersion and the sensitivity of dispersion by sectors? 2) What would be the impact on value added induced by final demand? and 3) How would the final demand impact the level of import? The main finding in this study is to find a sectoral structure and a factor of the final demand for Vietnam’s development.
Highlights
This paper seeks to answer some questions: 1) What would be the impact on the power of dispersion and the sensitivity of dispersion by sectors? 2) What would be the impact on value added induced by final demand? and 3) How would the final demand impact the level of import? The main finding in this study is to find a sectoral structure and a factor of the final demand for Vietnam’s development
In Vietnam, it has been politically directed and generally accepted that the structure of economy should be adjusted toward larger proportions of industry and construction sector (Sector II) and service sector (Sector III) in GDP and this has long been considered as the holistic solution to boost economic development [1]
About power of dispersion index and sensitivity for dispersion index The results of the research on power of dispersion index and sensitivity for dispersion index from Table 2 show that industry group of agriculture, forestry and aquatic product (Sector 1), industry group of food processing, beverage and tobacco (Sector 3), the production of oil and gas products (Sector 5) and other manufacturing industries (Sector 10) have both power of dispersion index and sensitivity of dispersion index higher than the general average of the economy and there is no change in the two I/O tables, which suggests that these four groups of manufacturing sectors strongly stimulate other groups of industry of the economy, but the input demand for the economy is large
Summary
In Vietnam, it has been politically directed and generally accepted that the structure of economy should be adjusted toward larger proportions of industry and construction sector (Sector II) and service sector (Sector III) in GDP and this has long been considered as the holistic solution to boost economic development [1]. This rate went down from 34.1% in the structure of 2007 (the structure of the I/O 2016 table) to only 21% in 2016 [2]. This means that this sector is increasingly inefficient and less productive, leading to an increase in investment to compensate for such inefficiencies
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