What is it about?
This paper is trial attempt for introducing the concept of Leontief inverse matrix and the Leontief extended system for Keynes multipliers, which can analyze the relationship between income groups and consumer groups, respectively. The model is also used to analyze the structure of income in order to describe quantitatively the relationship between income from production and income not from production. The empirical study used the Vietnam input-output table, 2005.
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Perspectives
The analysis of I/O models and demographic - economic model showed the changes of the economy cause of different impacts to sectors and institutional regions. So, calculation on this element is necessary to plan the tax policy and other policies. Such as, analyze the index of power of dispersion shows that this index of the sector is very large, then, if you stimulate development of this sector, it highly impacts other sectors in the economy. Calculations show that these sectors are almost processing sectors: meat processing, vegetable, coffee, seafood, etc… For example on coffee, mainly used to export but in raw form. Fruit and vegetable processing industry in Vietnam is still very weak, so there is no production stimulated and it created low “added value”. Thus, the potential of processing industry is great, the scale as well as the economic impacts, calculated in terms of the overall economy. On the other hand, the development of these sectors helps to stimulate and enlarge the value of agricultural labor, to minimize the negative impact of the integration process on the lives of more than 10 million rural households in Vietnam.
Bui Trinh
Read the Original
This page is a summary of: Foreign Direct Investment (FDI) in Vietnam Economy, Theoretical Economics Letters, January 2019, Scientific Research Publishing, Inc,,
DOI: 10.4236/tel.2019.94064.
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