The Soundness of Macroeconomic Fundamentals in Vietnam
Ly Hung
Working Papers from HAL
Abstract:
The paper investitages the soundness of macroeconomic fundamentals in Vietnam, by time varying vector autoregression (TVC-BSVAR) method over a quarterly sample over 03/2000-12/2020. The evidence records three macroeconomic princinples: the trade-off between output and inflation, VND depreciation rate enhancing output growth rate, and lower inflation improving economic growth. This structure determines the resilience of economy toward world shocks. Specially, the disturbed FDI capital can substitute the world GDP growth rate on raising domestic GDP growth rate, inflation rate and evaluating domestic currency. The result also suggests that the improvement of FDI absorption capacity, through the institutional quality, needs to be a prioritied policy for the economy to self-insure against the negative schocks from world growth rate and oil price.
Keywords: Macroeconomic Fundamentals; Vector Autoregression; Foreign Capital Inflows (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-mac and nep-sea
Note: View the original document on HAL open archive server: https://hal.science/hal-03195651
References: Add references at CitEc
Citations:
Downloads: (external link)
https://hal.science/hal-03195651/document (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-03195651
Access Statistics for this paper
More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD (hal@ccsd.cnrs.fr).