A long-run and short-run analysis of the macroeconomic interrelationships in Vietnam
Dao Thi Hong Nguyen,
Sizhong Sun and
Sajid Anwar ()
Economic Analysis and Policy, 2017, vol. 54, issue C, 15-25
Using quarterly data over the March 2001 to December 2011 period and employing the vector error correction (VEC) methodology, this paper investigates the interrelationships among GDP, foreign direct investment (FDI), international trade, the inflation rate and state investment in Vietnam. The results of the Johansen cointegration test confirm the presence of a long-run relationship among the variables. The analysis of the short-run dynamics reveals that the impact of a shock to GDP on FDI is more significant than the impact of FDI on GDP. Furthermore, FDI exerts a stronger impact on exports than imports and Vietnam’s inflation rate appears to play a crucial role in affecting the dynamics of some of the key economic variables. Our work highlights the need for effective and consistent policies that not only control the rate of inflation but also lead to sustainable economic growth.
Keywords: VEC; FDI; Trade; Growth; Vietnam (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:ecanpo:v:54:y:2017:i:c:p:15-25
Access Statistics for this article
Economic Analysis and Policy is currently edited by Clevo Wilson
More articles in Economic Analysis and Policy from Elsevier
Bibliographic data for series maintained by Haili He ().