Impact of inflation on income inequality in Vietnam over 1986-2023


Authors

  • Ly Dai Hung Vietnam Institute of Economics
  • Phạm Thành Công Vietnam Institute of Economics
  • Pham Phu Minh Central Institute for Economic Management
DOI: https://doi.org/10.57110/vnu-jeb.v5i5.459

Keywords:

Inflation, inequality, income, BVAR

Abstract

The paper analyzes the impact of inflation on income inequality in Vietnam over 1986-2023. The income inequality, as a dependent variable, is measured by the GINI coefficient while inflation rate, import to GDP ratio (IMP), financial openness, financial globalization and foreign direct investment are independent variables. Analysis results using the BVAR model show that a higher inflation slightly reduces income inequality, which is contrary to the previous view that high inflation increases income inequality. Then, the paper suggests some important policy implications to improve income inequality, including controlling inflation, encouraging exports, enhancing distribution policy, supporting firms, managing imports and attracting FDI.

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Published

25-10-2025

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How to Cite

Ly Dai Hung, Phạm Thành Công, & Pham Phu Minh. (2025). Impact of inflation on income inequality in Vietnam over 1986-2023. VNU JOURNAL OF ECONOMICS AND BUSINESS, 5(5), 24. https://doi.org/10.57110/vnu-jeb.v5i5.459

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