RELATIONSHIP BETWEEN BUDGET DEFICIT AND ECONOMIC GROWTH IN VIETNAM | Zendy

Nguyen The Huynh | Zendy; Thanh-Na Ha Nguyen-Le | Zendy; Nghi Quoc Le | Zendy

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RELATIONSHIP 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 -

science and technology development journal

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.

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