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Domestic and Foreign Research Related to Thesis Topic

4.4 . Analytical framework of the thesis


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Basic research content

Results and goals to be achieved

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Figure 1.1: Thesis analytical framework

5. New scientific contributions of the thesis

Firstly , systematize research works and theses with the inheritance of domestic and foreign studies on public investment and Public Investment Policy, aiming to clarify the theoretical basis of the national Public Investment Policy and lessons learned in implementing Public Investment Policy in Thai Nguyen province.

Second , from theoretical research, research on policy documents, the Law on Public Investment, textbooks and lectures on public policy, combined with the results of a survey of the actual implementation of public investment policy, the researcher synthesizes and summarizes the process of implementing public investment policy.

Third , the thesis clarifies the current status of investment policy implementation.

public investment policy in Thai Nguyen province in the past 10 years, pointing out the results achieved by qualitative and quantitative indicators and limitations and weaknesses and causes of limitations and shortcomings in implementing public investment policy in Thai Nguyen province.

Fourthly , based on the analysis of the current situation, the thesis proposes a number of solutions to improve the effectiveness of implementing the Public Investment Policy in Thai Nguyen province, helping provincial policy makers to refer to.

6. Theoretical and practical significance of the thesis

In terms of theory : The research results of the thesis contribute to clarifying the theoretical basis of Public Investment Policy, including: Concept, role, factors affecting the implementation of Public Investment Policy, domestic and foreign experiences in implementing Public Investment Policy. The issues mentioned in the thesis contribute significantly to analyzing the current status of implementing Public Investment Policy, to propose solutions to effectively implement Public Investment Policy in Thai Nguyen province.

In practice : The research results of the Thesis can be used as reference material for students, graduate students, PhD students and lecturers in studying and teaching the major of Public Policy. At the same time, it is also a source of documents to help State management agencies on investment as well as leaders of Thai Nguyen province to refer to in directing and implementing the Public Investment Policy in Thai Nguyen province.

7. Structure of the thesis

In addition to the introduction and conclusion, the thesis is structured into 4 chapters as follows: Chapter 1: Overview of research situation related to the thesis topic

Chapter 2: Theoretical and practical basis for implementing Public Investment Policy Chapter 3: Current status of implementing Public Investment Policy in Thai Nguyen province Chapter 4: Viewpoints, orientations and solutions to improve implementation efficiency

Public investment policy in Thai Nguyen province

Chapter 1

OVERVIEW OF RESEARCH RELATED TO THE THESIS TOPIC

1.1. Domestic and foreign studies related to the thesis topic

1.1.1.Research works on public policy and public policy implementation:

Some studies on public policy abroad and domestically include:

Devarajan, Swaroop and Zou (1996), Chen (2006), Ghosh and Gregoriou (2008),[62][59][66]. The authors studied the relationship between total government investment, government expenditure structure and growth. With data collected from 43 countries, in about 20 years of research, Devarajan, Swaroop and Zou pointed out a very remarkable result: The increase in investment expenditure has a negative impact on economic growth, while the increase in current expenditure has a positive impact. Chen (2006), Ghosh and Gregoriou (2008) used the generalized method of moments (GMM), with data collected from 15 developing countries over a period of 28 years, and also gave results quite consistent with the above results. According to the empirical analysis results of the above authors, recurrent expenditure has an important contribution to economic growth, not investment expenditure. The author divides investment and recurrent expenditure into 05 different sectors, the research results show that investment expenditure has a more positive effect than recurrent expenditure in some sectors and vice versa, recurrent expenditure has a more positive effect on investment expenditure in some other sectors.

Edwards, S. (1992) [65], argues that the financing of investment expenditure from the state budget, usually done by increasing taxes or borrowing, has directly competed with the private sector in accessing the economy's scarce financial resources. With the consensus view that public investment is often less efficient than private investment, the "crowding out" hypothesis recommends cutting public investment to support growth.

Kormendi and Meguire (1985); Barro, RJ (1991)[70],[55]. Both of these studies exploited data from many countries around the world and the growth rate was calculated over a long period. They used multiple regression analysis with many variables.

The explanatory variables are chosen based on growth theories and predictions. However, the results of these two studies are different. Kormendi and Meguire (1985) found that government spending has no effect on growth, while Barro (1991) found that government spending has a negative effect on economic growth.

Solow, R. (1956); Aschauer, DA (1989a)[74][51], argued that, in theory, there are two main hypotheses about the relationship between public investment and private investment. The hypothesis that public investment “crowds out ” private investment, increased public investment will cause private sector investment to shrink. The reason is that the government's demand for goods and services can cause interest rates to increase, capital becomes more expensive, thereby negatively affecting the private sector.

David N Hyman (2005) [60] clearly demonstrated the role of government in managing the economy and argued for the role of government in public sector decisions. In addition, the author also mentioned urgent issues such as military, national security, Iraq war, social security, environmental pollution, federal tax reform which are areas of public policy aimed at socio-economic development of any country in the world.

Le Chi Mai (2001) "Solutions to promote administrative reform in Vietnam" [25]. The author believes that public policy includes many interrelated decisions, focusing on solving a problem arising in economic and social life according to defined goals, public policy must demonstrate the intention of political parties and policy makers to change or maintain a certain status quo. The subject issuing public policy is the state. If the subject issuing "private policy" can be private organizations, socio-political organizations as well as agencies in the state apparatus to regulate activities within the scope of that organization, organization or separate agency, the subject issuing public policy can only be an agency in the state apparatus. Public policy is issued by the state so it can be considered a state policy. The State is understood as the competent authority in the state apparatus including the National Assembly, the Government, the Prime Minister, ministries, branches, and local authorities.

Do Phu Hai (2017), " Overview of public policy" [13], the author defines public policy as follows: "Public policy is a set of decisions related to the SELECTION of goals and policy tool solutions to solve policy problems according to the overall goals determined by the ruling political party" . In the book, the author mentions policies expressed through legal documents: Laws, Decrees, Circulars and Decisions, and also clearly indicates the nature and purpose of public policy in our country and gives principles for building public policies including: Principle for the benefit of the community; management and compulsory principles; system principles; principle of gathering decisions; principle of solidarity; principle of historical inheritance; principle of majority decision; principle of building public policies according to market mechanisms; principle of fair distribution.

Nguyen Thanh Binh (2020) “Current public policy development in Vietnam - Theoretical and practical issues”. [6] The author clarifies theoretical issues related to public policy development: viewpoints, theories, and theories to build a theoretical framework to analyze and evaluate the reality of public policy development in Vietnam; at the same time, explains and clarifies the current state of public policy awareness and public policy development, as well as the policy development process taking place in our country, thereby pointing out the basic characteristics of public policy development in Vietnam today. The author also points out the limitations and challenges in public policy development, thereby proposing principles that need to be ensured as well as reforms in policy development, and providing a model to improve public policy development activities in Vietnam.

Ly Thi Ngoc (2020) " Implementing legal policies to protect national security in Vietnam today" . [28] The author of the thesis clarifies some general theoretical issues on legal policies to protect national security such as: the concept of legal policies to protect national security, legal policies to protect national security in Vietnam; problems, goals, solutions, tools of legal policies to protect national security in Vietnam; implementing legal policies to protect national security; areas of legal policies to protect national security... The author analyzes

Factors affecting the implementation of national security protection policies and laws in Vietnam through assessing the current status of implementation of national security protection policies and laws in Vietnam, and at the same time pointing out the advantages, limitations and causes. From there, propose directions and some solutions to improve the current national security protection policies and laws in Vietnam.

1.1.2. Research works on public investment and public investment policy

Public investment plays an important role, creating a material and technical foundation for the country, considered a "lever" for a number of key economic sectors, and at the same time, has practical significance in implementing social welfare, security and defense policies. Therefore, there are many studies on different aspects related to Public Investment Policy at home and abroad, each study addresses different aspects and areas, specifically:

Coutinho Rui and Gallo, G. (1991)[58]. The study analyzed the Cost-benefit of investment and argued that the overall increase in public capital programs has a significant impact on economic output and concluded that

―a cost-benefit analysis of the impact of maintaining existing infrastructure versus expanding capacity for congested highways, runway traffic, and air traffic control at major airports‖.

Edward Anderson, Paolo de Renzio and Stephanie Levy, the authors of the article “The Role of Public Investment in Poverty Reduction: Theories, Evidence and Methods” [63] mentioned the role of public investment in poverty reduction (2006). The authors presented evidence and theories to prove the role of public investment in poverty reduction by pointing out the effectiveness of public investment in growth, production, poverty and social equity.

Era Babla - Norris, Jim Brumby, Annette Kyobe, Zac Mills, and Chris Papageorgiou - IMF (2011).[72] The authors of the article " Public Investment, An Index of Public Investment Efficiency" analyzed and evaluated the efficiency of public investment, and proposed the process of public investment management through four different stages: (1) Project appraisal; (2) project selection; (3) investment implementation; (4) investment evaluation. By surveying 71 countries (40 low-income countries, 31 high-income countries)

average), allowing for the assessment and comparison of similar regions and countries that implement investment policies.

Wolfgang Streeck and Daniel Mertens (2011), authors of the article “Fiscal Austerity and Public Investment” [80], mentioned the structure of public investment expenditure under limited budget conditions. The authors argued that tightening finance and public investment demonstrated that public investment in three countries: Sweden, the US and Germany from 1981 to 2007, tended to increase public investment in software, which is investment in education, research and development, family support, and labor market policies. The authors also pointed out the relationship between public investment and investment in software. Under limited financial conditions, how to invest effectively and limit budget deficits.

Benedict Clements, Rina Bhattacharya, and Toan Quoc Nguyen (2003),[65] Authors of the article: “External Debt, Public Investment, and Growth in Low-Income Countries”, in the article, the authors clarified the role of public investment in economic growth and the relationship between public investment, external debt, and economic growth in low-income countries. In this article, the authors reviewed theories related to the research problem, proposed growth models, public investment models, thereby quantifying and analyzing the impacts through practical evidence from low-income countries: Benin, Bolivia, Bhutan, Burkina Faso, Burundi, Gambia, Ghana, Guinea, Eritrea, Ethiopia, Mauritania, Mozambique, Nicaragua, Niger, Uganda Vanuatu, Vietnam, Zambia.

Vu Thanh Tu Anh (2018), "Management and decentralization of public investment management: Current situation in Vietnam and international experience". [1] The author analyzes and compares public investment in Vietnam using the diagnostic framework for evaluating public investment management proposed by Anan Rajaram and colleagues (2011) and states that this diagnostic framework must follow the steps of the effective public investment management cycle including: Investment orientation; project development and preliminary selection; official project appraisal; independent assessment of project appraisal; selection and budgeting of public investment projects; implementation of public investment projects; adjustment of public investment projects; evaluation and audit after project completion. The author also points out some limitations of public investment decentralization: Decentralization is not uniform, uniform, and general; the coordination mechanism between localities is weak; the monitoring mechanism

The author believes that in Vietnam, it is necessary to change the way of planning; to appraise and inspect projects independently; to select projects must go hand in hand with project establishment and to control and evaluate projects after completion.

Luong Van Khoi and Nguyen Thanh Tuan (2014) "International experience on public investment and lessons for Vietnam", Journal of Legislative Studies .[33] The author synthesizes international experience on public investment of a number of countries in the world: the United Kingdom; the French Republic; the Federal Republic of Germany; North American countries, China and a number of developing countries. Focusing on analyzing the development stages of public investment, from which lessons are drawn for Vietnam: (i) Investment policy needs to be effective to prevent scattered, unfocused and ineffective investment; (ii) The goal of public investment mainly serves the goals of public policy, filling the shortcomings of the market economy, and is the driving force to attract and promote private sector investment through specific mechanisms such as developing forms of public-private partnerships (PPP);

(iii) Public investment activities must be carried out on the basis of national planning, regional planning, sectoral and field planning; there must be a long-term strategy, medium-term and annual plan with a list of projects and works prioritized for implementation according to time schedule, with focus and key points; (iv) Public investment policies must ensure fairness and social security; (v) There must be a reasonable mechanism for decentralizing public investment; whichever level is allowed to decide on investment, that level is responsible for arranging investment capital and is responsible for managing, supervising investment as well as investment efficiency; there must be responsibility for explaining, supervising and evaluating the efficiency of public investment clearly, along with sanctions and strict implementation of sanctions for violations; (vi) In the immediate period, it is necessary to reduce the scale of public investment to avoid the dependence of growth rate on the scale of public investment; (vii) The State needs to synchronously issue policy mechanisms to create new investment resources for the economy.

Le Van Tuan (2020), " State management of public investment in the context of climate change in Dong Thap". [34] The author clarifies that provincial-level public investment in the context of climate change is public investment activities chaired by the provincial government to implement public investment programs and projects to serve the province's sustainable socio-economic development in response to climate change, based on mobilized resources, not

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