ANALYZING THE CONVERGENCE AND SPATIAL CORRELATION OF LABOR PRODUCTIVITY ACROSS VIETNAMESE PROVINCES DURING THE PERIOD 2010–2022

DOI: 10.18173/2354-1067.2025-0047

Abstract

This study assesses convergence and spatial correlation in labor productivity across 63 provinces and municipalities in Vietnam during the 2010–2022 period. Two quantitative approaches are employed: sigma-convergence (σ) and absolute beta-convergence (β). The results indicate that the coefficient of variation in labor productivity declined from 1.25 in 2010 to 0.59 in 2022, reflecting a slow but steady convergence trend. The negative and statistically significant beta coefficient at the 1% level confirms that provinces with lower initial productivity experienced faster growth. Moran’s I analysis reveals a statistically significant positive spatial autocorrelation (I = 0.300; p < 0.01), indicating the presence of productivity clustering, where provinces with similar productivity levels (high or low) tend to be geographically proximate. These findings highlight the critical role of spatial linkages in productivity diffusion, particularly in key economic zones. Therefore, it is essential to design spatially oriented development policies tailored to the specific capacities and geographic positions of each region