ICT and income inequality in Vietnamese provinces: the role of provincial competitiveness

Purpose As technology progresses, information and communication technology (ICT) is increasingly acknowledged as a vital component in mitigating provincial income inequality. This study aims to investigate the moderating effect of provincial competitiveness on the relationship between ICT and income inequality. Design/methodology/approach This study employs panel data at the provincial level in Vietnam from 2018 to 2022 to investigate the moderating effect of provincial competitiveness on the relationship between ICT and income inequality. The generalized method of moments, generalized least squares and Driscoll–Kraay methods for panel data analysis are utilized. Findings The findings reveal that ICT adversely affects income inequality, as confirmed by all three regression analyses. In addition, provincial competitiveness significantly contributes to reducing income inequality within provinces. The study also demonstrates that provincial competitiveness moderates the relationship between ICT and income inequality. Practical implications The insights emphasize the significance of ICT and the positive impact of provincial competitiveness on income inequality, providing strategic policy recommendations for the government to address provincial income inequality. Originality/value To the best of the author’s knowledge, this pioneering study expands the literature on the knowledge economy by providing empirical evidence of how ICT and provincial competitiveness interact to influence provincial income inequality in emerging economies.