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Does the State Bank Widen the Gap Between International and Domestic Gold Prices? Evidence from Vietnam

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  • Tho Ngoc Tran
  • Chi Dat Le
  • Thao Thi Phuong Hoang

Abstract

Vietnam is amongst the 24 countries with the highest demand for gold according to the World Gold Council. Over the last few years, the Vietnam gold market has been characterized by a unique feature which is a gap between international and domestic gold prices. Empirical research on the gap provides invaluable insight into the impact of state regulations on Vietnam gold market. The results show that interventions from the State Bank of Vietnam (the SBV) impose unnecessary instabilities in the gold market and widen the gap. The outcomes contribute to literature about impacts of state regulations on gold market and provide policy implications as well.

Suggested Citation

  • Tho Ngoc Tran & Chi Dat Le & Thao Thi Phuong Hoang, 2017. "Does the State Bank Widen the Gap Between International and Domestic Gold Prices? Evidence from Vietnam," Global Business Review, International Management Institute, vol. 18(1), pages 45-56, February.
    • Handle: RePEc:sae:globus:v:18:y:2017:i:1:p:45-56
    DOI: 10.1177/0972150916666853
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    Cited by:

    1. Joel Verghese & Phaik Nie Chin, 2022. "Factors affecting investors’ intention to purchase gold and silver bullion: evidence from Malaysia," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(1), pages 41-51, March.

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    Keywords

    Gold market; gap; state bank;
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