THE EFFECT OF GOVERNANCE AND PUBLIC ADMINISTRATION ON LIVING STANDARDS IN VIETNAM FROM 2018 TO 2021

Abstract

Household living standards are essential indicators of national development and attract a lot of attention from both authorities and citizens. In this study, we analyze how governance and public administration have influenced the living standard of residents in 63 cities and provinces in Vietnam during the period of 2018 to 2021. We used compositional data analysis to analyze data obtained from the statistical yearbook of Vietnam and the Vietnam Provincial Governance and Public Administration Performance Index (PAPI) from 2018 to 2021. The results indicate that better governance and public administration positively correlate with higher living standard. To be more specific, rate of poverty decreases whereas average income increases when PAPI score exceeds a certain threshold. Moreover, our study indentifies several factors significantly affecting Vietnamese living standards, including provincial investment, population density, and number of tourists, etc. These findings provide valuable scientific evidence for researchers and authorities to plan for improvement in local living standards.