TAILIEUCHUNG - Inflation and the public investment: Growth relationship in Vietnam

This study examines the role of inflation in the public investment–growth relationship in Vietnam using the two-step GMM Arellano-Bond estimators for a balanced panel data of 52 provinces during the period of 2005–2014. | Journal of Asian Business and Economic Studies Volumn 25, Special Issue 01 (2018), 50-67 Journal of Asian Business and Economic Studies Inflation and the public investment: Growth relationship in Vietnam NGUYEN VAN BONa a Unive Sai Gon University ARTICLE INFO ABSTRACT Received 24 May 2017 Public capital spending positively contributes to economic growth and development in many countries worldwide. However, questions concerning the importance of inflation in the public investment– growth relationship are of great interest. This study examines the role of inflation in the public investment–growth relationship in Vietnam using the two-step GMM Arellano-Bond estimators for a balanced panel data of 52 provinces during the period of 2005–2014. More interesting are the empirical findings. First, inflation significantly increases the volume of public capital spending. Second, public investment and inflation enhance economic growth, but their interaction term impedes it. Third, private investment, government recurrent expenditure, and trade openness are the significant determinants of growth. These findings suggest some important policy implications related to public capital spending and inflation in developing countries, specifically the Vietnam government. Revised 19 Oct, 2017 Accepted 1 Jan. 2018 Available online 12 January 2018 JEL classifications: E42; F43; H54 KEYWORDS Public investment Inflation Economic growth GMM Arellano-Bond estimators Provinces in Vietnam a Email: bonvnguyen@ Nguyen Van Bon, JABES Vol. 25(Special 01), Feb. 2018, 50-67 51 1. Introduction Many governments worldwide increasingly invest in infrastructure, education, and health through public investment projects to enhance economic growth, create more employments, and stabilize social security. Thus, public investment crucially contributes to economic activities. However, public capital spending may adversely affect economic development, which .

• Kinh tế học
• Public investment
• Economic growth
• GMM Arellano Bond
• Provinces in Vietnam
• Growth relationship in Vietnam
• Impact of public investment
• Public investment and private investment
• Private investment
• Socio economic issues
• Restructuring Vietnam’s public investment
• Restructuring of public investment
• Pinpoint drawbacks
• The structure of public investment
• Evidence from Vietnam
• Public investment on private investment
• Crowding in
• Crowding out effect
• Gross investment
• Structural vector autoregressive
• Private domestic investment
• Public private partnership investment
• Investment decisions
• Budget overspend
• Public debt
• Public financial policy
• Finance market
• Stateowned companies
• Summary of Doctoral thesis
• Effectiveness of public investment
• The agriculture area
• Practical issues of public investment
• The agricultural sector
• Leadership behavior
• Public management
• Construction investment
• Road infrastructure
• Public investment management
• Summary of Doctoral thesis Finance – Banking
• Current period in Vietnam
• Managing Vietnam’s public investment
• Luận văn Thạc sĩ Tài chính ngân hàng
• Finance Banking
• Efficiency of public investment
• Promote disbursement of public investment
• Food security
• Capital formation
• Agriculture in Karnataka
• Summary of Doctoral thesis in Economics
• Context of climate change
• Investment management
• Greenfield Investment
• Cross border M&As
• Foreign direct investment
• Public service sectors
• Transportation sectors
• Public infrastructure
• Investment and development
• Evidence from turkey
• Development public infrastructure
• Gross enrolment rate
• Infant mortality rate
• Doctoral thesis on Law
• Laws on investment
• Public private partnership
• Public private partnership in Vietnam
• Impact of public expenditure
• Public expenditure on private investment
• Policy implications for Vietnam
• Public administration
• State management
• Investment projects
• State budget
• Higher education
• Postgraduate education
• Doctor of public administration
• Postgraduate education in Vietnam
• Managerial finance
• Lecture Managerial finance
• Financial statements
• Initial public offerings
• Investment banking
• Financial restructuring
• Dynamic OLS
• Enhancing quality
• Carry evaluation
• Environmental factors
• Summary thesis Doctoral
• Managing investment project
• Infrastructure construction
• The form of Public Private Partnership
• Improve the management
• Summary of PhD thesis
• Summary of PhD thesis in Public Management
• Reforms of administrative procedures
• Investment in Thai Nguyen province
• Administrative procedures
• Dissertation abstract Construction mannagement
• Risk management
• Technical infrastructure construction
• Investment projects in Da Nang