The Nexus Between Education and Structural Transformation: Evidence from Vietnam

• Published in: The Journal of Asian finance, economics, and business pp. 259 - 267
• Main Authors: Cong Bac TRUONG, Van TRAN
• Format: Journal Article
• Language: English
• Published: 한국유통과학회 01.10.2021
• Subjects: 경제학
• ISSN: 2288-4637; 2288-4645
• DOI: 10.13106/jafeb.2021.vol8.no10.0259

Both structural transformation and education are the predominant subjects in the literature of development economics. This study examines the relationship between education before the tertiary level and the structural transformation of provinces by using Vietnam as a case study. In this study, education before the tertiary level would be disaggregated into three groups: primary, lower secondary, and upper secondary, then analyzed simultaneously on three-panel data models. Research data is taken from the statistical yearbook of provinces in Vietnam for 2015–2018. Research results show that education before the tertiary level plays a vital role in structural transformation. The enrolment rate of various education levels has a different influence on economic structure, and the lower secondary level has more significant effects than the upper secondary level. This reflects that participating in lower secondary is a fundamental requirement for taking some jobs in the non-agriculture sector, while upper secondary helps to upgrade the learner’s abilities to respond to higher requirement jobs. The high rate of repeaters in upper secondary education will slow down the structural shift towards non-agriculture, and changing the traditional attitude about repeaters plays an essential role in improving this rate. KCI Citation Count: 0