Vu Hoang Linh,

ECONOMICS Ph.D.
OF SOCIAL VNU University of
ISSUES Economics & Business
 Brief
Introduction
Lecturer:Vu Hoang Linh, Ph.D. (University of Minnesota,
USA)
Address: Faculty of Political Economy- VNU University
of Economics
Điện thoại: 0906691976
Email: vhlinh76@gmail.com.
Google Scholar:
https://scholar.google.com.sg/citations?
user=t1mXNysAAAAJ&hl=en
SOME RULES
Prepation at home
 Reading before class.
 Prepare questions.
 Ready to discuss at class.

Participate in discussions.
GROUP FORMATION
•Students should divide into groups. Each group has 4
to 6 students. There is one group leader per each
group.
•Students create a zalo or email group. I will send the
materials to the group.
Don
’t Do
CONTENTS
Chapter 1: General introduction to economics on
social issues
Chapter 2: Economics of education
Chapter 3: Economics of health services
Chapter 4: Economics of poverty and inequality
Chapter 5: Economics of corruption
Chapter 6: Economics of environment
Case study, real-life
30 hours of lectures 15 hours of discussion
applications
COURSE SCHEDULE
•15 weeks
•Class attendance (10%)
•One mid-term (15%)
•One final exam (60%)
•Two presentations (group work) (15%)
MATERIALS
Required materials
Register & Grimes (2016), Economics of Social Issues, 21st Edition, McGraw-Hill education.
World Bank (2022). 2022 Vietnam Poverty and Equity Assessment – From the Last Mile to the
Next Mile.
Folland, S., Goodman, A.C., Stano, M., & Danagoulian, S. (2024). The Economics of Health and
Health Care (9th ed.). Routledge.
Reference materials

Checchi D. The Economics of Education: Human Capital, Family Background and Inequality.
Cambridge University Press; 2006.
Tromme, M. (2016). Corruption and corruption research in Vietnam - an overview. Crime, Law and
Social Change, 65(4-5), 287–306.
The World Bank (2022). Viet Nam: Country Climate and Development Report. Link:
https://documents1.worldbank.org/curated/en/099355507062229876/pdf/
P17724103036ee07909701028a237b6d18b.pdf
Chapter 1: Introduction on the
subject
1.The necessity of the subject and selection
of research topics
2.Concepts and theories
3.Research objectives and methods
4.Challenges for developing countries
THE NECESSITY OF THE SUBJECT-
INTERNATIONAL PERSPECTIVE
THE NECESSITY OF THE SUBJECT-
NATIONAL PERSPECTIVE
Resolution of the 6th National Party Congress (1987): “The level of economic development is the
material condition for implementing social policies, while social goals are the purpose of economic
activities…”

Resolution of the 10th National Party Congress (2010): “Combine economic goals with social goals
nationwide, in each field and locality; implement social progress and equity in each step and each
development policy, effectively implement social policies on the basis of economic development,
linking rights and obligations, contributions and enjoyments, creating a stronger and more sustainable
driving force for socio-economic development…. Focus on solving pressing social issues”.

Resolution of the 12th National Party Congress (2016) sets out a number of key tasks including
“stepping up the fight against corruption, waste, and bureaucracy.” and “Taking care of improving
material and spiritual life, effectively solving urgent problems; strengthening social development
management, ensuring social security and human security; ensuring social security, improving social
welfare and sustainable poverty reduction.”

=> Emphasis social policies, and social goals in economic policies.

IMPORTANCE OF STUDYING
SOCIAL ISSUES IN
ECONOMICS
•Social issues impact economic stability and growth.
•Addressing social issues can lead to more equitable
development.
COURSE OBJECTIVES
Master concepts related to economics of social issues; understand
indicators measuring poverty, inequality, human development
index, transparency, criteria for assessing the quality of education,
health care, etc.
Analyze, synthesize, and evaluate social issues in general and
Vietnam in particular using economic tools and methodologies.
Discuss, evaluate, and propose solutions to contribute to the
economic and social development of the country.
SOCIAL ISSUES
Definition of Social Issue:
 According to the University of California: “Social issues are conditions or
behaviors that have a negative impact on many people in society and
that are identified as needing to be addressed.” Source: Socialsci
 According to study.com: “Social issues are problems that are recognized
by a large number of people as factors that prevent society from
operating at its optimal level.” Characteristics of a social issue include:
 A majority of community members recognize the urgency of the problem,
 The reality of the problem is contrary to the common values ​of the community,
 The problem can be solved through the efforts of community members and
resources. Source: Study.com
KEY SOCIAL ISSUES AND
WHY THEY ARE IMPORTANT
1. Income Inequality: Income inequality leads to a concentration of wealth, which can reduce
overall economic demand. It may also contribute to social unrest, lower social mobility, and hinder
economic growth as the lower-income population has less spending power and fewer opportunities
for advancement.

2. Unemployment: High unemployment rates result in a loss of income for individuals, reducing
their consumption and, consequently, overall economic demand. Prolonged unemployment can
lead to a loss of skills in the workforce, making it harder for people to find new jobs and lowering
productivity.

3. Healthcare: Lack of access to affordable healthcare can lead to a less healthy workforce,
increasing absenteeism and lowering productivity. High healthcare costs can also limit disposable
income, reducing consumer spending, which is crucial for economic growth.

4. Education: Inadequate access to quality education limits the development of human capital,
reducing workforce productivity and innovation. Poor education systems can also lead to higher
levels of poverty and crime, which strain public resources and economic stability.
KEY SOCIAL ISSUES
(CONTINUE)
5. Poverty: Poverty reduces individuals' ability to participate in the
economy, both as consumers and as producers. It leads to lower
levels of education and health, perpetuating a cycle of poverty and
limiting economic growth.
6. Climate Change: Climate change impacts the economy by
disrupting agricultural production, increasing the frequency of natural
disasters, and damaging infrastructure. These effects can lead to
higher costs for businesses and governments, reduce productivity,
and create instability in economic markets.
7. Gender Inequality: Gender inequality, especially in the labor
market, results in the underutilization of a significant portion of the
population. This can limit economic growth and innovation, as diverse
perspectives and talents are not fully leveraged.
USA CHINA
SELECTION OF SOCIAL ISSUES
According to OECD, major issues
affecting young people in Vietnam
include:
•Policy and legal system
•Health
•Education
•Employment
•Immigration According to Indochina research

•Youth participation
 THE ROLE OF ECONOMICS IN
ADDRESSING SOCIAL ISSUES
1. Policy Analysis Economics helps in evaluating the effectiveness of different policies
aimed at addressing social issues.
Example: The use of cost-benefit analysis to assess the implications of healthcare reforms or social safety nets.

2. Resource Allocation:Economics provides insights into how scarce resources can be

allocated efficiently to maximize social welfare.
Example: Analyzing the trade-offs between investing in public education versus other social programs.

3. Economic Modeling: Economists use models to simulate different scenarios and

predict the outcomes of various interventions.
Example: Using macroeconomic models to forecast the impact of fiscal policies on income distribution and
economic growth.

4. Understanding Market Failures: Many social issues arise from market failures,
where markets do not allocate resources efficiently on their own.
Example: Addressing externalities like pollution through environmental regulations or public goods
like national defense through government provision.
 SELECTION CRITERIA FOR
RESEARCH TOPICS IN
SOCIAL ISSUES
1. Relevance to Current Events: Choose topics that are timely and relevant to ongoing social and
economic challenges. This ensures that the research has practical significance and can contribute to
current debates and policy discussions.

2. Availability of Data: A crucial factor in selecting a research topic is the availability of reliable data.
Without sufficient data, it becomes challenging to conduct thorough analysis and draw meaningful
conclusions.

3. Potential for Policy Influence: Select topics that have the potential to inform and influence public
policy. Research that can offer actionable insights for policymakers is more likely to have a tangible
impact on society.

4. Feasibility: Consider the scope of the research and whether it can be realistically completed given the
time, resources, and expertise available. Feasibility ensures that the research can be conducted
effectively and within set constraints.

5. Interest and Expertise: Choose a topic that aligns with your interests and expertise. A strong personal
or professional interest in the topic can drive more passionate and in-depth research, leading to more
insightful outcomes.
CASE STUDY: A SOCIAL
ISSUE AND ITS ECONOMIC
IMPACT
Introduction to the Social Issue: Provide background information, including what the
issue is (e.g. income inequality), why it is significant, and any relevant historical or
contextual details.
Economic Impact: Discuss the specific ways in which the social issue impacts the
economy. This could include effects on GDP, employment, productivity, consumer spending,
government spending etc.

Data and Statistics: Present relevant data and statistics that illustrate the economic
impact of the social issue. This could include graphs, charts, or tables showing trends or
comparisons over time or across different regions.
Policy Responses and Outcomes: Describe any policy measures that have been
implemented to address the social issue and their outcomes. This helps to connect the
analysis with real-world interventions and their effectiveness.
Lessons Learned: Summarize the key takeaways from the case study. What can be learned
from this example about the relationship between social issues and the economy? How can
this knowledge be applied to other social issues?
INTRODUCTION TO KEY
ECONOMIC CONCEPTS
Supply and Demand: The basic economic model of price determination
in a market.
 Example: How changes in the demand for healthcare services can
affect the prices and availability of those services.
Market Failure: A situation in which the market, on its own, fails to
allocate resources efficiently, leading to a loss of economic and social
welfare.
 Example: Environmental pollution as a negative externality where
the cost is not reflected in the market price, leading to overproduction
and environmental damage.
Externalities: Costs or benefits that affect third parties who did not
choose to incur those costs or benefits. Externalities can be or negative.
 Example: Government regulation or taxation is often necessary to
INTRODUCTION TO KEY
ECONOMIC CONCEPTS
Opportunity Cost: The cost of forgoing the next best
alternative when making a decision. Opportunity cost is a key
concept in understanding trade-offs in resource allocation.
 Example: When a government chooses to spend money on
healthcare, the opportunity cost might be the forgone
investment in education.
Economic Efficiency: An efficient allocation occurs when no
one can be made better off without making someone else worse
off (Pareto efficiency).
 Example: Analyzing whether social welfare programs are
achieving their goals without wasting resources.
ECONOMICS OF SOCIAL ISSUES
• Use economic principles and tools to analyze
1 social issues.

• Answers to three key questions: When do

social issues reduce economic efficiency?
How should social issues be solved to
2 improve socio-economic development
efficiency? What can the government do to
improve socio-economic outcomes?

• Research and evaluation of policies are often

3 undertaken to address these social issues.
LEARNING OUTCOMES
•Use economic concepts to identify, describe and
explain social issues.
•Analyse social issues from different perspectives in
Economics.
•Analyse public policy responses to social issues from
different economic perspectives.
•Effectively communicate economic arguments
supported with appropriate evidence.
COMMON RESEARCH METHODS
Quantitative methods: Quantitative methods involve the use
of numerical data and statistical techniques to analyze
economic phenomena. It includes cost-benefit analysis,
correlation, regression etc.
Qualitative methods: Qualitative methods focus on
understanding the deeper meaning and context of social issues
through non-numerical data. These methods are useful for
exploring complex phenomena that are difficult to quantify.
They include case studies, in-depth interviews etc.
COMMON RESEARCH
METHODS (CONT.)
Mixed Methods: Mixed methods combine both quantitative
and qualitative approaches to provide a more
comprehensive analysis. Examples:Surveys Followed by
Interviews.
Experimental methods: Experimental methods involve
manipulating one or more variables to observe the effects
on another variable. These methods are used to establish
causal relationships and are often conducted in controlled
settings. Examples:Randomized Controlled Trials (RCTs) (A
method often used in policy research where participants are
randomly assigned to a treatment group or a control group),
Field Experiments (conducting experiments in real-world
TYPICAL RESEARCH
PROCESS IN ECONOMICS
 CASE STUDY: AN EXAMPLE
OF A RESEARCH PROJECT
ON A SOCIAL ISSUE
1. Introduction to the Social Issue (e.g. The Impact of Income Inequality on
Educational Attainment”). Begin with a brief description of the social issue being
studied. Provide context about why this issue is important and relevant.
2. Research Objectives: Clearly outline the research objectives that guided the
study. These should include what the study aimed to discover or achieve.
3. Research Methodology: Describe the research methods used in the study,
including how data was collected and analyzed.
4. Data and Analysis: Present key data and findings from the research. Use charts,
graphs, or tables to make the data visually accessible. Highlight significant
patterns or correlations that were discovered.
5. Results and Interpretation: Interpret the findings in the context of the research
objectives and the broader social issue. Discuss whether the results supported the
initial hypothesis and what the findings imply.
6. Conclusions and Recommendations: Summarize the main conclusions drawn
from the research and provide recommendations for policy or future research. This
section should offer actionable insights based on the study's findings.
 CHALLENGES FOR DEVELOPING
COUNTRIES
Discussion
Low Living Standards Low Productivity
• Relatively low national income, low • Low labor productivity
per capita income, low growth. • Lack of resources, additional
• Unbalanced and unequal income inputs such as capital,
distribution.A segment of the experienced management team
population suffers from poor health,
malnutrition and debilitating High population growth rate
diseases. • High population growth rate >2%
• Low literacy rate, high dropout rate, per year due to improved health
inadequate curriculum and care system
educational facilities. • Increasing burden from
• Access to quality healthcare is dependents (elderly and children)
limited in many developing
countries, leading to high mortality
rates, especially among children and
mothers.
CHALLENGES FOR DEVELOPING
COUNTRIES
High unemployment Highly dependent on
• Labor utilization is not really agricultural production and
effective. Even skilled and trained primary processing
workers are at high risk of • Majority of the population lives in
unemployment rural areas (over 65%)
• Low productivity in agriculture due to
Vulnerability in outdated technology, poor
organization, lack of inputs
international relation • Dependency on exports of resources,
• Dependent on capital, technology primary products, assembled
transfer from developed countries. products
• Influence of lifestyle, social values ​
from developed countries.
• Binding from bilateral, multilateral
trade agreements
 THE INTERPLAY BETWEEN
ECONOMIC DEVELOPMENT
AND SOCIAL ISSUES
1. Impact of Economic Development on Social Issues:
Economic development can lead to improvements in social
conditions by increasing incomes, creating jobs, and providing
resources for social services like education and healthcare.
2. Social Issues as Barriers to Development: Persistent social
issues, such as poverty, corruption, and lack of education, can
hinder economic development by limiting the potential of the
workforce and increasing the costs of doing business.
3. The Role of Government and Policy: Governments play a
crucial role in addressing social issues and promoting economic
development through policies and programs.
THE INTERPLAY BETWEEN
ECONOMIC DEVELOPMENT
AND SOCIAL ISSUES (CONT.)
1. Case Study: Microfinance and Economic Development:
Microfinance programs, which provide small loans to entrepreneurs in
developing countries, are an example of how addressing social issues
can spur economic development. Example: In Bangladesh, the Grameen
Bank’s microfinance initiatives have helped lift millions out of poverty..
2. Feedback Loops Between Development and Social Issues: There
are often feedback loops where economic development can exacerbate
social issues, and vice versa. For example, rapid urbanization driven by
economic growth can lead to increased inequality and increased
pollution.
3. Balancing Economic and Social Goals: Achieving sustainable
development requires balancing economic growth with social equity.
Policies that focus solely on economic growth without addressing social
issues can lead to imbalances and long-term instability.
ANY QUESTION?
THANK YOU

Vu Hoang Linh
vhlinh76@gmail.com