Impact of metropolises' competitiveness characteristics on structural transformation of provinces in Vietnam: A spatial approach.

The uneven development between geographical areas has long been analysed in detail, especially in regard to the relationship between urban and rural areas. However, studies on the impact of the advantages in competitive characteristics of urban areas on rural areas seem to be overlooked. This study, therefore, analyses the effects of metropolises on the structural transformation of provinces based on specific metropolises' competitiveness characteristics. Firstly, Moran's I is used on the share of non-agricultural sectors in the economic structure in order to measure the spatial autocorrelation between provinces in Vietnam as a typical developing country. Furthermore, the relationship between metropolises and the change in the economic structure of provinces is analysed quantitatively using spatial panel data models based on data from the statistics yearbook of all 63 areas in the period 2010 to 2019. The research results confirm the role of metropolises' competitiveness characteristics in the provinces' structural transformation process. Provinces with a high proportion of nonagricultural sectors in their economic structure are concentrated around metropolises. With advantages in competitiveness characteristics, the metropolis is the destination for migration, the origin of remittance, and the market for neighbouring provinces. These roles are seen as driving forces for off-farm activity through changes in the incomes of neighbouring provinces. Accordingly, focusing on specific metropolises' competitiveness characteristics and enhancing regional connectivity will promote effective provincial structural transformation. [ABSTRACT FROM AUTHOR]