Analysis of the relationship between financial policy-competitiveness capacity - economic growth: A study of economic transformation in Vietnam

Daniel Balsalobre-Lorente, Pham Minh Tien1, Dinh Thi Thu Hien2
1 University of Finance - Marketing
2 Bank for Social Policies, Kbang district, Gia Lai province

Nội dung chính của bài viết

Tóm tắt

This study aims to examine the relationship between fiscal policy, provincial competitiveness and Vietnam's economic growth. The study uses the VECM model for time series data including the factors Total tax revenue of the country, Growth of the expanded money supply represents fiscal policy; Provincial competitiveness and Vietnam's economic growth in the period 1990-2021. The study has provided additional empirical evidence on the relationship between financial policy, provincial competitiveness and economic growth in the context of selecting Vietnam. The research results show that financial policies have affected economic growth in localities in the third period with an impact of 3%. In comparison, provincial competitiveness has affected economic growth right in the 1st period with a large impact of 18%. The change of economic growth has an impact in the same direction with provincial-level financial and energy competitiveness policies. From this result, the authors propose implications to limit the lag in the implementation of financial policies.

Chi tiết bài viết

Author Biography

Daniel Balsalobre-Lorente,

aniel Balsalobre-Lorente
Department of Applied Economics I, University Castilla-La Mancha, Spain
Department of Management and Marketing, Czech University of Life Sciences Prague Faculty of Economics and d Management, Prague, Czech Republic
UNEC Research Methods Application Center, Azerbaijan State University of Economics (UNEC), Istiqlaliyyat Str. 6, Baku 1001, Azerbaijan

Tài liệu tham khảo

Arestis, P. (2015). Coordination of fiscal with monetary and financial stability policies can better cure unemployment. Review of Keynesian Economics, 3(2), 233–247. https://doi.org/10.4337/roke.2015.02.07
Barro, R. J. (1990). Government spending in a simple model of endogenous growth. Journal of Political Economy, 98(2), 103-125. http://www.jstor.org/stable/2937633
Bokreta, K., & Benanaya, D. (2016). The fiscal-monetary policy and economic growth in Algeria: VECM approach. International Journal of Economics and Management Engineering, 10(9), 3084-3088. http://dx.doi.org/10.5281/ze-nodo.1126221.
Chugunov, I., & Pasichnyi, M. (2018). Fiscal stimuli and consolidation in emerging market economies. Investment Management and Financial Innovations, 15(4), 113-122. https://doi.org/10.21511/imfi.15(4).2018.09
Das, P. K., & Guha-Khasnobis, B. (2008). Finance and growth: An empirical assessment of the Indian economy. In Financial development, institutions, growth and poverty reduction (pp. 120-140). London: Palgrave Macmillan UK. https://doi.org/10.1057/9780230594029_6
Forte, F., & Magazzino, C. (2016). Government size and economic growth in Italy: a time-series analysis. European Scientific Journal, 12(7), 1857-7881. https://doi.org/10.19044/esj.2016.v12n7p149
Lahutin, V. D. (2017). Ekonomichna polityka derzhavy ta efekty yii realizatsii [Economic policy of the state and the effects of its implementation]. Visnyk Kyivskoho Natsionalnoho Torhovelno-Ekonomichnoho Universytetu, 4, 5-21.
Levine, R. (1997). Financial Development and Economic Growth: Views and Agenda. Journal of Economic Literature, 35(2), 688-726. http://www.jstor.org/stable/2729790
Lukianenko I. H., Dadashova P. A (2016). Monetary and Fiscal Policies Interaction in Ukraine. Actual Problems of Economics, 5(179). 295–307. https://ekmair.ukma.edu.ua/handle/123456789/11721
Lucas Jr, R. E. (1988). On the mechanics of economic development. Journal of Monetary Economics, 22(1), 3-42. https://doi.org/10.1016/0304-3932(88)90168-7
Ab Majid, R., Mohamed, N., Haron, R., Omar, N. B., & Jomitin, B. (2014). Misappropriation of assets in local authorities: A challenge to good governance. Procedia-Social and Behavioral Sciences, 164, 345-350. https://doi.org/10.1016/j.sbspro.2014.11.086
Mishchenko V., Naumenkova S., Mishchenko S., Ivanov V. (2018). Inflation and economic growth: the search for a compromise for the Central Bank’s monetary policy. Banks and Bank Systems, 13(2), 153–163. https://doi.org/10.21511/bbs.13(2).2018.13
Le, N. P., & Duy, L. V. (2021). Effect of provincial competitiveness index on enterprise attraction in the Central Highlands, Vietnam. Plos One, 16(9), e0256525. https://doi.org/10.1371/journal. pone.0256525
Nguyen Phuong Lien (2017). Causal Linkage among Tax Revenue, Provincial Competitiveness and Economic Growth at the Provincial Level: Evidence from Vietnam. VNU Journal of Science: Economics and Business, 33(2), 38-48. https://js.vnu.edu.vn/EAB/article/view/4079
Okorie, D. I., Sylvester, M. A., & Simon-Peter, D. A. C. (2017). Relative effectiveness of fiscal and monetary policies in Nigeria. Asian Journal of Social Science Studies, 2(1), 117–129. https://doi.org/10.20849/ajsss.v2i1.129
Özer, M., & Karagöl, V. (2018). Relative effectiveness of monetary and fiscal policies on output growth in Turkey: an ARDL bounds test approach. Equilibrium. Quarterly Journal of Economics and Economic Policy, 13(3), 391-409. http://dx.doi.org/10.24136/eq.2018.019.
Simionescu, M., Lazányi, K., Sopková, G., Dobeš, K., & Adam, P. B. (2017). Determinants of Economic Growth in V4 Countries and Romania. Journal of Competitiveness, 8(1), 103–116. https://doi.org/10.7441/joc.2017.01.07
Şen, H., & Kaya, A. (2015). The relative effectiveness of monetary and fiscal policies on growth: what does long-run SVAR model tell us? MPRA Paper, 65903. https://mpra.ub.uni-muenchen.de/id/eprint/65903
Shan, J. (2005). Does financial development ‘lead'economic growth? A vector auto-regression appraisal. Applied Economics, 37(12), 1353-1367. https://doi.org/10.1080/00036840500118762
Knutsen, C. H. (2013). Democracy, state capacity, and economic growth. World Development, 43, 1-18. https://doi.org/10.1016/j.worlddev.2012.10.014

Các bài báo được đọc nhiều nhất của cùng tác giả