TAILIEUCHUNG - Public spending and economic growth: A granger's causality test in a multivariate model for the case of Vietnam

This paper looks into the causal relationship between public spending and economic growth. The research model is developed from the comprehensive production function wherein public spending is split into two components (. budget spending and ODA spending) with a view to evaluating how efficiently public finance resources are allocated. | ECONOMIC DEVELOPMENT No. 206, October 2011 PUBPLIC SPENDING AND ECONOMIC GROWTH: A PUBPLIC SPENDING ANDINECONOMIC GROWTH: GRANGER’S CAUSALITY TEST A MULTIVARIATE MODEL A GRANGER’S TEST IN A FOR THECAUSALITY CASE OF VIETNAM MULTIVARIATE MODEL by Assoc. Prof., Dr. SÖÛ ÑÌNH THAØNH* FOR THE CASE OF VIETNAM by Assoc. Prof., Dr. SÖÛ ÑÌNH THAØNH* Over the past two decades, Vietnam’s public spending increases rapidly from of GDP in 1991 to of GDP in 2010. Additionally, since Vietnam resumed its relations with community of international donors, inflows of ODA have numerously supported government’s spending; Vietnam’s economic growth rate has reached on average. The question is whether the rise in public spending will expedite the national economic growth or the national economic growth will push public spending up. This paper looks into the causal relationship between public spending and economic growth. The research model is developed from the comprehensive production function wherein public spending is split into two components (. budget spending and ODA spending) with a view to evaluating how efficiently public finance resources are allocated. Simultaneously, trade openness, private investments and labor force are treated as control variables. With the data set of the period 1990-2010 and the Granger causality test in the multivariate VAR model, the research finds that the model is statistically significant and the two-component public spending has a unidirectional causal relationship with economic growth. Another significant finding is that public spending does not have any relationship with private investment. Eventually, based on findings, some solutions and policy implications will be recommended. Keywords: public spending, ODA, economic growth 1. The government’s role in economic growth and previous researches In the national economy, the government affects GDP through its interaction with the private sector. The development of .

• Kinh tế học
• Public spending
• Economic growth
• Multivariate model
• Budget spending
• ODA spending
• Efficiently public
• Public finance
• Lecture Public finance
• Public expenditure
• Public good
• Public education
• Oil prices
• Oil sector revenue
• Saudi arabia
• Optional resources
• Trend analysis
• Volatility of oil prices
• Oil prices lowering year
• State budget spending
• Public investment
• Implementing social welfare policies
• Ensuring security
• Vietnam's integration
• Public health
• Long term care spending
• Regional variation
• Long term care claims data
• Municipality playing
• Healthcare spending
• Quasi experimental design
• Cost model
• Obesity and chronic illness
• Economics today
• The nature of economics
• Public choice
• Funding the public sector
• Consumer choice
• Policy Analysis
• Social Security Defi cit
• Policy Proposal
• Public Investment Projects
• President Explains
• Entitlements Spending Crisis
• Preclinical Research
• Schizophrenia
• Serotonin 1A Receptors
• Obstetrics and Gynecology
• Prepregnancy Body
• Capital expenditure
• Recurrent expenditure
• Private investment
• Domestic capacity
• Conducive environment
• Investment growth
• Lecture Macroeconomics in context
• Bài giảng Kinh tế vĩ mô
• Kinh tế vĩ mô
• Fiscal Policy
• Government Spending
• Public Budgets in Europe
• Policy Issues
• inexpensive implement
• physical training
• Worthington College
• young Kentuckian
• medical regulation
• proactively introducing