Climate Change, Economic Growth and Growth Determinants: Insights From Vietnam’s Coastal South Central Region

Using the Feasible Generalized Least Squares econometric method, the paper analyzes the impact of climate change on economic growth in Vietnam’s coastal South Central region over the period of 2006–2015. The results indicate that, after controlling for the main determinants in the growth model, the climate change with various proxies has a significantly negative impact on provinces’ economic growth in the region. In particular, local institutions not only increase economic growth, but also reduce the negative impact of climate change on economic growth as well. These results suggest some policy implications aimed at boosting the process of transforming the economic growth model for the coastal region adapting to climate change. JEL codes: F21, F23, E22