Economic growth and balance of payments constraint in Vietnam

Alberto Bagnai, A. Rieber and T.A.D. Tran ()
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A. Rieber: Department of Economics, University of Rouen, France
T.A.D. Tran: DIAL, Institute of Research for Development, Vietnam

No 13, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: Our paper examines the long run relationship in Vietnam between economic growth and the current account balance equilibrium by relying on the BoP constrained growth model. We find that Vietnam grew less than the rate predicted when the period 1985 to 2010 as a whole is considered, but with different behavior for the 1998-2010 sub-period. The relative price effect is neutral, allowing the volume effects to dominate in setting the BoP constraint. The high income elasticities of exports enable growth in the advanced countries to have a multiplier effect on the Vietnamese economy. However, this effect is hindered by a high ‘appetite’ for imports coming from Asia. We also assess the impact of the current crisis on Vietnam’s growth for the period 2011 to 2017.

Keywords: Economic growth; BoP constrained growth model; Multi country model; Asia; Vietnam (search for similar items in EconPapers)
JEL-codes: E12 F43 O11 O53 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2013
New Economics Papers: this item is included in nep-fdg, nep-mac and nep-sea
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Related works:
Working Paper: Economic growth and balance-of-payments constraint in Vietnam (2016)
Journal Article: Economic growth and balance-of-payments constraint in Vietnam (2015)
Working Paper: Economic growth and balance-of-payments constraint in Vietnam (2013)
Working Paper: Economic growth and balance of payments constraint in Vietnam (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:1313

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