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Structural Change, Balance of Payments Constraint, and Economic Growth: Evidence from Vietnam

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  • Woocheol Lee

Abstract

The impact of demand-side factors and rapid structural changes have largely been ignored in explaining the economic growth of Vietnam. This paper employs the multisectoral balance-of-payments constrained economic growth model to capture the influence of structural changes on the exports and economic growth of Vietnam over the period 1997–2016. Based on the estimates for the sectoral income elasticities of demand for exports and imports obtained from autoregressive distributed lag models, this paper argues that it is not relative prices but income that has played a significant role in Vietnam’s economic growth, the income elasticities of demand for exports have grown faster than those of demand for imports, and the weight of exports has significantly moved from primary to high-technology products. JEL Classification : E12, F43, O53

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  • Woocheol Lee, 2021. "Structural Change, Balance of Payments Constraint, and Economic Growth: Evidence from Vietnam," Review of Radical Political Economics, Union for Radical Political Economics, vol. 53(4), pages 631-653, December.
    • Handle: RePEc:sae:reorpe:v:53:y:2021:i:4:p:631-653
    DOI: 10.1177/04866134211010947
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    Cited by:

    1. Woocheol Lee, 2023. "Trade Liberalization, Distributional Coalitions and Economic Growth: A Case of Vietnam," Sustainability, MDPI, vol. 15(14), pages 1-19, July.

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    More about this item

    Keywords

    multisectoral Thirlwall’s law; balance of payments constraint; structural change; long-run economic growth of Vietnam;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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