Open AccessRELATIONSHIP BETWEEN BUDGET DEFICIT AND ECONOMIC GROWTH IN VIETNAM
Author(s) -
Nguyen The Huynh,
Thanh-Na Ha Nguyen-Le,
Nghi Quoc Le
Publication year - 2015
Publication title -
khoa học công nghệ
Language(s) - English
Resource type - Journals
ISSN - 1859-0128
DOI - 10.32508/stdj.v18i2.1125
Subject(s) - deficit spending , economics , investment (military) , government budget , order (exchange) , government (linguistics) , macroeconomics , economic policy , monetary economics , finance , public finance , political science , politics , debt , linguistics , philosophy , law
This paper examines the relationship between budget deficit and economic growth in Vietnam, using VAR model. The results indicate that the relationship between budget deficit and economic growth is not clear. However, gross investment has a causal relationship with budget deficit and economic growth. The government should, therefore, implement and control the investment flows as well as effectively manage budget deficit in order to achieve a stable growth in the coming years.