Do Natural Resource Rents Enhance Labor Productivity? Evidence from Vietnam
Abstract
This study examines the effects of economic growth, human capital, and natural resource rents on labor productivity in Vietnam over the period 1991–2021. Using time-series data from the World Development Indicators and the Penn World Table, the study employs a threshold regression model in which human capital is used as the threshold variable to capture non-linear relationships. The results indicate that economic growth has a consistently positive and statistically significant impact on labor productivity across all regimes. In contrast, human capital effect positively only after surpassing a certain threshold; at low and medium levels, its effect on labor productivity is negative. Based on these findings, the study shows policy implications that emphasize improving the quality of human capital through better education, skills development, and technological absorption, while gradually reducing reliance on natural resource exploitation as a key driver of economic growth.
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