Impact of Income Inequality and Spatial Cost of Living on Poverty: Empirical Evidence in Vietnam

Abstract

This study examines the effects of spatial income inequality and cost of living on provincial poverty rates in Vietnam using panel data from 63 provinces and cities during the 2020-2024 period. The empirical findings indicate that poverty rates are positively associated with both income inequality and higher living costs. In contrast, per capita income, foreign direct investment (FDI), the number of operating enterprises, average life expectancy, the homeownership rate, and the unemployment rate significantly contribute to poverty reduction. These results provide important policy implications, highlighting the need to address disparities in income distribution and living costs while promoting inclusive growth and sustainable development across provinces in Vietnam.
Keywords
poverty income inequality spatial cost of living

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