The Effect of Provincial Competitiveness on Gross Regional Domestic Product: Evidence from the Red River Delta, Vietnam, 2013–2023

This study investigates the effect of the Provincial Competitiveness Index (PCI) on Gross Regional Domestic Product (GRDP) across the eleven provinces of Vietnam's Red River Delta from 2013 to 2023, aiming to provide updated evidence for the post-pandemic era marked by significant regional disparities. Utilizing a balanced panel dataset, the research employs econometric models and selects the Feasible Generalized Least Squares (FGLS) method to address heteroskedasticity and serial correlation. The findings reveal that PCI, foreign direct investment (FDI), and population all have a positive and statistically significant impact on GRDP, with a one-point rise in PCI corresponding to an average increase of VND 2,492 billion in GRDP. The study contributes fresh empirical evidence on the importance of local economic governance and implies that policymakers should focus on enhancing administrative transparency and procedural reforms as a core component of broader strategies to stimulate sustainable regional growth.