Supporting and accompanying enterprises

then the grouping of those localities will create the effect of shift as high as possible. Not only developed countries but also developing countries focus on shifting economic sectors by location and by region. 1.3.2. The domestic research 7 Referring to the previous economic development, we mainly refer to the key economic areas in the North or the Southeast, where the advantage of natural conditions as well as geographical location. However, in recent times, we have witnessed the strong growth of provinces / regions that are not appreciated or have geographical disadvantages. The most evident evidence is in the provinces of the Central Region, such as Quang Nam, Da Nang or Quang Ngai. 1.4. Studies on the impact of economic sector restructuring on economic growth 1.4.1. The foreign research Neoclassical economic models also mentioned the impact of restructuring or more specifically, economic sector restructuring on economic growth. Subsequent studies apply econometric models to more specifically assess the relationship between sectoral restructuring and economic growth, which are based on theories of economic growth. 1.4.2. The domestic research Factors affecting economic growth and the basic model of economic restructuring have been paid attention to by many Vietnamese scientists. Before the Doi Moi period, the research of Vu Tuan Anh (1982) was considered a comprehensive study and updated the trend of the time at that time. The basic theories on changing the labor force as well as the need to concentrate investment in industry have been mentioned by him. 1.5. Conclusions drawn from the overview of research works related to the thesis 1.5.1. Conclusions 1.5.1.1. The agreed content may inherit Research on economic restructuring in Vietnam is relatively diverse, according to many different approaches and using many different models. However, most studies focus on assessing the effects of structural changes on economic growth, not to mention the factors affecting the sector restructuring process - evaluated in the Previous research is important, directly affecting the growth of a nation or a locality. The rest of the studies focusing on impact assessment only mention a few effects, such as the productivity of labor and the scale of public or private investment on the transition process in general including labor restructuring, not specifically mentioning economic sector restructuring. On the other hand, most recent studies have used econometric tools to assess the influence of factors. The empirical studies have become more effective and reliable, and the studies have generally agreed on the theory of economic sector restructuring. 8 Taking into consideration all previous studies, each one has its own conclusions about the impact of each factor on the process of economic development in general. 1.5.1.2. Research gaps Firstly, the theoretical gap when assessing integrated factors affecting the process of economic sector restructuring in localities. The author expects to use econometric model to evaluate the effectiveness of the factors, thereby proposing appropriate solutions to promote the process of economic sector restructuring to take place more effectively. Secondly, the gaps in the research space when the study focuses on coastal areas assessment. This area has an important geographical position, as well as the expectations of the managers because of the potential to develop industries associated with industrial parks and tourist sites. The study will concentrate on determining the irrationalities in the planning as well as the impact of issues such as labor, so that the economic restructuring process in the region will have a reasonable and sustainable shift. 9 CHAPTER 2. THEORETICAL BASIS ON THE EFFECTS OF FACTORS TO TRANSACTION OF ECONOMIC INDUSTRY STRUCTURE IN THE PROVINCE 2.1. The basic concepts 2.1.1. Economic industry structure "The economic structure is the correlation between the parts of the economy as a whole, showing the organic relationship and the interaction of both quantity and quality among parts." (Pham Ngoc Linh and Nguyen Thi Kim Dung, 2011). 2.1.2. Economic sector restructuring 2.1.2.1. Concept of economic sector restructuring The history of economic development shows that the process of economic restructuring is always accompanied by the development of a country, especially in which the economic restructuring of the economy, the main content here is the density shift from agriculture to industry in order to achieve a higher quality output. Collectively, the restructuring process is always present in the development cycle of an economy and it is always associated with the process of industrialization - modernization. Economic structure is classified as follows: sectoral economic structure, regional-territorial economic structure, economic sector structure. After a relatively long time of implementing the mechanism of centralized bureaucratic and bureaucratic concentration, our country is gradually shifting to a multi-component commodity economy, mobilizing according to the market mechanism under the state's management towards social orientation. nationalism, and it is the most important content of the Party Congress affirming the economic structure must necessarily be properly oriented. This content has basically been synthesized through a description and definition: “The process of changing the structure of the industry from one state to another is more and more complete, more suitable to the environment and generating conditions. development is called economic restructuring”. (Ngo Thang Loi, 2013) 2.1.2.2. Indicators assessing economic restructuring Measure the proportion of economic restructuring The author uses the method of assessing the density of industries to evaluate the speed of movement among industries, the formula is described as follows:
 =    Restructuring index  =  ( − ) 100 Lilien index 10 The Lilien Index was developed by Lilien (1982) to measure labor redistribution across sectors or regions.  =   ( −  ) 2.1.3. Trends in restructuring industry Industrialization and modernization is a fundamental and comprehensive transformation process of production, business, services and social-economic management. From the use of manual labor as a main force to the use of a how to popularize labor force with modern technology, means and methods, based on the development of industry and scientific and technological advances, creating high social labor productivity. 2.2. Theoretical basis of factors affecting economic sector restructuring Whether a nation succeeds or not depends on the process of restructuring from low-performing industries to high-performance industries. Researchers who often learn about modern economic growth are always interested in assessing the sectoral structure change of that country or region because it is one of the six main characteristics of economic growth. The major powers in the world have all undergone a process of strong economic growth and been heavily influenced by accurate and continuous industry restructuring. Higher-tech, more sophisticated, less-labor- intensive economic activity is shown in these countries. Developing economies have begun to participate in the process of industrialization and the general trend of the world since 1945 with a focus on processing - manufacturing. They abandon the mining-mining and agriculture areas and focus on areas that produce more efficient outputs. After the development of industry, the world has witnessed the development of the service sector since the 1970s. 2.2.1. Some theories about economic restructuring Structural-change theory based on the underdevelopment hypothesis is caused by the under-use of resources caused by structural and institutional factors both domestically and internationally. Therefore, development requires satisfying more conditions than just accumulating capital. The process of transforming the economy from agriculture to industry is based on the proportion that is understood as Structural transformation. However, this is the content when studying the theory of structural change, in fact today this concept is not only included in agriculture and industry. In the process of development, countries often choose the path of industrialization, ie priority for industry. For industrialization to be successful, the industry must use its resources in agriculture and services to innovate, improve technology, improve 11 productivity and grow. 2.2.1.1. Arthus Lewis's "take off" theory 2.2.1.2. The theory of two-region model 2.2.1.3. The theory of the model of "flying geese" by Kaname Akamatsu 2.2.1.4. The theory of economic restructuring of Moshe Syrquin 2.2.1.5. New structural economic theory by Justin Yifu Lin and Celestin Monga 2.2.1.6. General assessment of the theory of economic sector restructuring Research in the world on the relationship between structural change and economic growth is no longer a new topic in the world. However, the conclusions about the impact are basically not the same, the first reason is due to the difference in socio- economic conditions of the countries. Quantitative research also depends on the quality of information that scientists have access to. Perfect information is found more easily in developed countries than in developing countries, so their results are considered more reliable. Economic growth comes with the development of improved information quality in developing countries like Vietnam, on the other hand, models that combine many factors with the purpose of multidimensional assessment of the relationship between transition. Economic and growth translations are expected to yield more accurate results. Thereby, the next part of the thesis will outline the main factors affecting the process of economic restructuring of the industry in general or in particular localities. 2.2.2. Factors affecting the restructuring of economic sectors in the province Researches on the influence of each factor on economic sector restructuring have been paid attention and analysis by scientists. The study synthesizes and points out the influencing factors, from which a basis for its research model. 2.2.2.1. Amount of investment 2.2.2.2. Scientific and technological level 2.2.2.3. Labor productivity 2.2.2.4. Institutions and policies 2.2.2.5. Linking localities in groups of areas 2.2.2.6. Unique characteristics of each locality 2.3. Analytical framework of the study From the theoretical basis of the analysis of the factors in the previous sections, the study proposes the proposed analytical analysis framework as follows: 12 Figure 2.2. Analytical framework of the thesis CHAPTER 3. CURRENT SITUATION OF STRUCTURE OF ECONOMIC SECTOR IN CENTRAL COASTAL PROVINCES 3.1. Overview of provinces in the Central Coast region 3.1.1. Overview of the natural, economic and social conditions of the provinces in the region 3.1.2. Economic restructuring policies of the provinces in the region The master plan on socio-economic development of the North Central region and Central coastal region up to 2020 was issued by the Prime Minister in accordance with Decision No. 1114 / QD-TTg dated July 9, 2013. Content of regulations The plan refers to increasing the region's GDP scale to 2.2 times in 2010, the economic structure is shifting towards in-depth development, in which the regional comparative advantages need to be focused on exploiting in order to bring the The proportion of service sector in the whole region will increase to 39.9% in 2020 and with the proportion of industry sector will be 41.9%, creating jobs for about 400 thousand laborers. 3.2. Actual situation of economic restructuring in central coastal provinces 3.2.1. Restructuring economic sectors of localities in the period of 1995-2005 The majority of localities reduced the proportion of the previous major industries such as agriculture and forestry in the 10-year period under study, from accounting to approximately 50% of the economy scale to only above less than 30%. 3.2.2. Restructuring GDRP of economic sectors in localities in the 2006-2017 period The general trend of the whole region is the decrease in the proportion of Resource factors Developmental factors Institutional Regional linkages Restructuring economic sector Economic development 13 agriculture, forestry and fishery, with the localities with the strongest decrease being Thanh Hoa, with about 30% in 2007 to 20.39% in the year. In 2017, the same story happened with Ha Tinh from 30% to more than 20% or Quang Nam with nearly 30% in the beginning of the period to only about 12% at the end of this 10-year milestone. 3.2.3. Labor structure shift between economic sectors of localities in the 2006-2017 period The trend of labor mobility across economic sectors will assess the quality of the transition between the three sectors mentioned. The strong growth sector will attract labor, on the one hand because of higher income generation, on the other hand labor must also meet the required productivity. However, in general, it is difficult to find quality labor force, which is often shifted from lower productivity sectors such as agriculture and forestry to new areas or an associated area so it takes time to train and adapt. 3.3. Overview of the status of regional links in the region 3.3.1. General situation of regional connectivity in the region As mentioned in the previous section, Central Vietnam is defined by the Government to focus on three key development regions, with the advantages and characteristics of each region to identify areas for concentrated source development with the purpose developing resources and products to achieve your goals. In fact, due to their relatively similar geographic structure or cultural and social characteristics, the provinces and cities in the Central region can easily link together if there is a consensus on policy. The theory shows that to create an effective regional link, it needs to be connected by efficient transport infrastructure and quality human resources. 3.3.2. Typically linking tourist areas of Thua Thien Hue - Da Nang - Quang Nam 3.4. Overall assessment of local policy institutions through PCI and component indicators The study of Nguyen Ke Tuan (2016a) mentioned the role of the State in the process of restructuring the economy, the quality of operation (effectiveness, efficiency) or the quality of individuals in the apparatus (power resources, bravery and quality) are focused on improving, specifically "Creating a fair business environment", "Function of checking and controlling activities properly functions", "building an administrative service "Or" democracy, attracting social forces involved in investment and development management ". To evaluate the effectiveness of the local public authority, VCCI has cooperated with the United States Agency for International Development (USAID) from the first days to create the PCI - a provincial 14 competitiveness index. - PCI. This index has sub-indicators to serve the criteria proposed by researcher Nguyen Ke Tuan, such as market entry index, legal institution index or access to land. 3.5. Overview assessment of resource factors of localities in the region 3.5.1. Actual situation of invested capital in the area 3.5.2. Situation of labor quality in the area 3.5.3. Situation on the size of the economy and the trend of restructuring the economic sector of localities 3.6. General assessment of the current situation of economic restructuring of localities in the region In general, all localities have orientations on reducing the proportion of agriculture, forestry and fishery sectors and speeding up the shift to more productive non-agricultural sectors. In terms of regional economic links, forms of linkages have existed, but the effectiveness of these links still needs to be improved through clearer mechanisms and policies. The locality has a legal framework as well as facilitates the participation of stakeholders in the development and operation of products in the regional and interregional model. CHAPTER 4. FACTORS AFFECTING THE STRUCTURE OF ECONOMIC STRUCTURE TRANSACTION ON THE AREAS OF CENTRAL COASTAL PROVINCES 4.1. Analyze the influence of factors on economic restructuring in the central coastal provinces 4.1.1. Theoretical model 4.1.1.1. Basis for selecting research model Recently, author Vu Thi Thu Huong (2017) used a regression model of multi- dimensional panel data and spatial econometrics to assess the impact of factors on labor mobility. In addition to assessing capital, labor, or lilien indicators, institutional indicators such as PCI are also used by the author to evaluate the impact on the output value of the economy in the period from 2006 to 2014, with the positive effects perceived from the results of the study, the proposed model is as follows:  ! = " + " ! + "$ ! + "% ! + "&'(! + )*+, + ( + -! + . ! Besides, the author also uses sub-indicators on labor training in the PCI to evaluate 15 as an assessment factor affecting the labor restructuring process in Vietnam since the PCI came out. In 2006, the results indicated that when the other factors were constant, if the local labor training criteria increased by 1 point, the Lilien average would increase by about 0,203 points. The research model that the author proposes is as follows:  ! = " + "$/01 ! + "$/01 !  + "%(2' ! + "&34 ! + "546 ! + "7-0-! + *+, + ( + -! + . ! In which: j, k and t are industry, province and time index, respectively. 4.1.1.2. Proposed research model Comprehensive author model to assess the impact of factors affecting the process of sectoral economic restructuring of provinces in the Central Region provinces based on the research of Hamm and King (2010) ), De Vries et al. (2015), Carraro and Karfakis (2018) in addition to using dynamic panel data model developed by Blundell and Bond (2000). The empirical regression model has the form: 89:;;?@= ∝?+ BC?DEFG@HFD@?@ + BI@FJKDLMLNO?@ + BPMQRSTLUVJ@?E?@O?@ + BC?DG@?@V@?LD?@ + W?@ (C) Inside: TRANSITION is a dependent variable representing the economic restructuring, reflecting the speed of transition from agriculture to industry or services; Investment is an explanatory variable describing development investment capital, including public investment, private investment and foreign direct investment; Labproductivity is a descriptive explanatory variable for labor productivity; Institution is a descriptive explanatory variable for the institutional and policy factor; Technology is a descriptive explanatory variable for investment in local science and technology development; αi is the unique impact of each locality that cannot be observed; εit is the model error; i represent localities and t represent time. Model (1) is concretely interpreted as follows: @TQDG?@?LD?@ = = ∝?+ BCMDX8Y?@ + BIMDX88;?@ + BPMDZX=?@ + B[MD\XX8?@ + B]MD^_Y;?@ + B`MD;<aX?@+ BbMD\Xc?@ + BdMDa^e?@ + BfMDcY=?@ + W?@ (CQ) 16 Table 4.1. Summary of the variables in the regression model assesses the factors that affect GDP restructuring between economic sectors NO Variable name Acronym Measure The expected effect on the dependent variable Data sources 1 Shifting from agriculture - forestry to industry CNNL Share of industry GDP / GDP ratio of agriculture sector The author calculated based on GSO data 2 Shifting from agriculture - forestry to services DVNL Share of services GDP / GDP ratio of agriculture sector The author calculated based on GSO data 3 Shifting from agriculture - forestry to industry & services PNNNL Share of industry & services GDP / GDP ratio of agriculture sector The author calculated based on GSO data 4 Restructuring index S Evaluate the pace of economic sector restructuring The author calculated based on GSO data 5 Amount of FDI lnFDI Natural logarithm of the value of FDI +/- GSO 6 Amount of public investment LnDTC Natural logarithm of the value of public investment +/- GSO 7 Amount of private investment lnDTTN Natural logarithm of the value of private investment +/- GSO 8 Amount of education & training investment lnGDDT Natural logarithm of the value of education & training investment + GSO 9 Amount of sciene & technology investment lnKHCN Natural logarithm of the value of sciene & technology investment + GSO 10 Labor productivity lnNSLD Natural logarithm of GDP divided by number of employees + GSO 11 Local GRDP - represents local characteristics lnGDP Natural logarithm of GRDP + GSO 12 Variables represent Regional Links lnLKV Natural logarithm of the region's average growth rate +/- GSO 13 Institutions and policies lnPCI Natural logarithm of the annual PCI Index +/- GSO 14 Component indicators of PCI Natural logarithm of sub-indices of PCI index +/- GSO Source: Research synthesis of the author Model (2) is based on previous studies by Vu Thi Thu Huong (2017) and Carraro and Karfakis (2018). MQRLT@TQDG?@?LD?@ = ∝?+ BCMDX8Y?@ + BIMDX88;?@ + BPMDZX=?@ + B[MD\XX8 + B]g+B`g=;8+ BdMDX8aX?@ + W?@ (I) In addition to assessing the impact of capital, the model also uses: W is the increase in labor productivity due to the intra-sectoral shift effect. WS is the increase in labor productivity due to the effect of static restructuring. JOINT is an increase in labor productivity due to the effect of dynamic restructuring. lnDTLD is an explanatory variable of the factor Labor training in the PCI. 17 4.1.2. Metric description 4.1.3. Estimation method 4.1.3.1. Panel data Wooldridge (2015) defines that panel data can be referred to as table or associative data, or to be understood as a combination of observations both in time series and spatially. Therefore, a combination of two types of data including time series and cross sections can be interpreted as panel data. 4.1.3.2. Static regression models 4.1.3.3. Dynamic panel data model 4.1.4. Experimental results 4.1.4.1. Statistics describe variables in the model 4.1.4.2. Empirical estimation results of static models 4.1.4.3. Empirical estimation results of dynamic panel data regression model Table 4.12. Empirical estimation results model (1) Independent variables Dependent variables CNNL DVNL PNNNL S lnDTC -0,794 (-0,51) -7,636* (-1,90) -0,056 (-0,01) -11,663 (-1,18) lnDTTN -0,918 (-1,24) 2,537** (2,01) 4,238* (1,72) -18,548 (-1,29) lnFDI -0,092 (-0,53) 0,027 (0,13) 1,077*** (3,58) -3,571 (-1,30) lnKHCN 0,292 (0,97) -3,376* (-1,75) 2,133 (1,61) 2,271 (0,29) lnGDDT 0,160 (0,81) 0,039 (0,10) -2,909 (-1,41) 9,304 (1,12) lnNSLD 0,271 (0,14) 40,229 (1,56) 27,150* (1,85) -34,554* (-1,73) lnPCI 12,47*** (2,81) 10,452 (1,59) 10,476 (1,12) 175,476* (1,74) lnLKV 0,429 (1,41) 3,423* (1,83) 2,435*** (2,90) -2,374 (-1,03) lnGDP 0,967 (0,40) -28,846 (-1,41) -26,484** (-2,28) 26,180** (2,14) lagCNNL 0,322*** (3,28) lagDVNL -0,209 (-0,29) 18 Independent variables Dependent variables CNNL DVNL PNNNL S lagPNNNL 0,342 (1,33) lagS 0,077 (0,23) laglnDTC -0,262 (-0,98) 3,881 (1,28) -1,351 (-1,02) 11,698 (1,01) Cons -47,565** (-2,41) 119,538 (1,07) 100,754 (1,21) - 722,525** (-1,97) Sargan 0,000 0,000 0,000 0,000 Hansen 0,944 1,000 1,000 0,999 Number of observations 153 153 153 153 In brackets is the value of z-test or t-test, with ***, **, * respectively being p-value values corresponding to significance level less than 1%, 5%, 10% Source: Authors' calculations Table 4.13. Empirical estimation results model (1) with the selection of the component index of the PCI inde Independent variables Dependent variables CNNL DVNL PNNNL S lnDTC 0,211 (0,02) 48,377 (1,59) -39,417 (-1,11) -47,856** (-2,14) lnDTTN -10,429** (-2,11) -0,403 (-0,15) 28,698 (1,23) 16,043 (1,59) lnFDI -0,465 (-0,73) 2,947 (1,47) -2,766 (-1,36) -7,050 (-2,29) lnKHCN 3,752** (2,34) -20,580 (-1,63) -7,905 (-1,08) -10,549** (-2,02) lnGDDT 0,357 (0,55) -17,