Output-Inflation Trade-Off in the Presence of Foreign Capital: Evidence for Vietnam

Ly Hung

Working Papers from HAL

Abstract: On one monthly time-series dataset of Vietnam economy over 02/2008-09/2018, the Time-Varying-Coefficient VAR model records that the trade-off between inflation and output growth is mitigated by the foreign capital inflows. The inflation is mostly determined by credit supply growth, while output growth is largely driven by foreign direct investment (FDI) capital inflows. A monthly increase of FDI by 1 billion USD can raise 1.77 percent of monthly output growth rate. The result also holds on accounting for exchange rate fluctuation.

Keywords: Economic Growth; Inflation; Foreign Capital Inflows; Exchange Rate; Time Varying Coefficients Vector Autoregression (TVC-VAR) model (search for similar items in EconPapers)
Date: 2019-12
New Economics Papers: this item is included in nep-fdg, nep-mac, nep-sea and nep-tra
Note: View the original document on HAL open archive server: https://hal.science/hal-03112746
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Citations: View citations in EconPapers (2)

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Journal Article: Output-inflation Trade-off in the Presence of Foreign Capital: Evidence for Vietnam (2021)
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