Open AccessThe relationship between remittances and economic growth in Vietnam in the period of international integration
Author(s) -
Tung T. Le
Publication year - 2015
Publication title -
khoa học công nghệ
Language(s) - English
Resource type - Journals
ISSN - 1859-0128
DOI - 10.32508/stdj.v18i4.975
Subject(s) - balance of payments , economics , currency , monetary economics , foreign exchange , international economics , foreign exchange reserves
Over nearly three decades, remittances are one of the most important sources of foreign currency in ensuring balance of payments, foreign currency reserves increase, stabilize exchange market and financial market in Vietnam. This paper uses the AutoregressiveDistributed Lag model (ARDL) to study the relationship between remittances and economic growth in Vietnam in 1990-2014. Results of Perasan’ test confirmed the existence of long-term relationship between remittances and economic growth in Vietnam. The results also provide evidence of the positive impact of remittances to economic growth both in the short and long term.